In a 30-17 vote, the House Education and Labor Committee passed the Student Aid and Fiscal Responsibility Act (SAFRA, HR 3221) today, making it likely that it will reach the full House within the week.

The bill would represent the largest investment in student aid in US history. By cutting wasteful subsidies to student loan companies, this legislation would save $87 billion over ten years that would be reinvested in increasing student aid, investing in college access and completion programs, supporting community colleges, Historically Black Colleges and Universities (HBCU), and minority serving institutions, and other programs that would increase educational opportunities for low and middle income families. It would also commit $10 billion to reducing the deficit.

There were several important changes to the bill, including:

• The removal of a provision in the original version of the bill that would make graduate and professional students ineligible for Subsidized Stafford loan program. This is a need-based loan program where all of the interest that accrues while the student is in school is forgiven. This provision faced strong, early opposition, including from student groups like Campus Progress Action, the PIRGs, and the US Students Association.

• Extending the programs in the bill that invest in HBCUs and minority serving institutions by five years.

Things are going well so far, but bank lobbyists are still swarming Capitol Hill to try to preserve their subsidies at the expense of low and middle income students. Congress needs to hear from you now, so click here to take action.

* Cross-posted at StudentsOverBanks.org