House Lawmakers Introduce Bill To Simplify Federal College Financial Aid Process

College Aid Made EZ Act Would Streamline Federal Aid Applications and Expand College Access

Tuesday, March 20, 2007

WASHINGTON, DC -- With deadlines for submitting applications for federal college financial aid fast approaching, key House lawmakers introduced legislation today to simplify the form that students and parents must fill out to receive such assistance.

In its current state, the form - the Free Application for Federal Student Aid (FAFSA) - is excessively complicated and can prevent many students from applying for and receiving the financial aid they need to attend college. To help make the college loan and scholarship application process more efficient and fair for students and families, U.S. Reps. George Miller (D-CA) and Rahm Emanuel (D-IL) introduced the "College Aid Made EZ Act," which would condense the FAFSA from five pages to just two pages for students and families with high-need, among other things.

"The application process for federal college aid could confuse even tax experts, let alone students and parents. It is ridiculous that major companies can fill out a 13-question form to apply for a million-dollar loan, but students and parents must answer over 100 questions to apply for college financial assistance," said Miller, the chairman of the House Education and Labor Committee. "This bill will simplify the financial aid process and help expand college access for all qualified students - an important part of our plans to make college more affordable."

"Multi-billion dollar corporations fill out 13-question forms to receive million dollar Export-Import Bank loans. Shouldn't it be just as easy for high school seniors and their families to pay for college? American students deserve the same easy access to college financial aid," said Emanuel, the chairman of the House Democratic Caucus.

The College Aid Made EZ Act would simplify the federal college aid application process by:

• Establishing a FAFSA-EZ form that would cut the FAFSA from its current length of five pages to just two, significantly reducing the number of questions that students and families must answer to qualify for college aid;
• Creating a pre-FAFSA to allow students and parents to apply for financial aid while students are juniors in high school, providing families one extra year to plan for how to cover college costs;
• Encouraging coordination with the Internal Revenue Service to use information the government already has, eliminating the need for applicants to re-submit income and asset information they have already provided on their tax forms; and
• Improving online access to the FAFSA, speeding up the application process and allowing more students to apply for aid via the internet.
   

Due to dramatic increases in college tuition costs over the past five years, more and more students are now relying on federal student aid in order to help pay for their college education. Tuition and fees at four-year public colleges and universities have risen 41 percent - after inflation - since 2001. Close to nine million students received federal loans and grant aid during the 2003-2004 school year. During that year, about nine percent of dependent FAFSA applicants had annual family incomes below $20,000. Miller and Emanuel said today that improving the FAFSA application process is vital to increasing America's college completion rates and overall economic competitiveness.

A report issued today by The Institute for College Access and Success urged Congress to make the federal student aid process easier for applicants by allowing the Department of Education and the IRS to coordinate on applicants' financial data - cutting approximately two-thirds of the income-related questions on the FAFSA form. The Congressional Advisory Committee for Student Financial Assistance has also recently called on Congress to simplify the FAFSA.

Boosting college access and affordability is a top priority for the Democratic Congress. In the last two months, Congress has overwhelmingly voted to cut interest rates on federal student loans in half, increased the maximum Pell Grant scholarship by $260 - the first increase since 2003, and passed Pell Grant fairness legislation for the nation's neediest students.

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FOR IMMEDIATE RELEASE
Contact: Tom Kiley / Rachel Racusen
2181 Rayburn House Office Building
Washington, DC 20515
202-226-0853