TASFAA Community Blog
On the evening of August 1, 2011, the U. S. House of Representatives passed the Budget Control Act of 2011. The bill has been sent to the Senate, which is expected to pass the bill and forward to the President for signing. It will prevent the United States from defaulting on its loan obligations and raise the debt ceiling. Under the bill, discretionary spending will be reduced by $1 trillion over the next 10 years. The debt ceiling will be raised in two steps: $400 billion immediately following Presidential certification that the debt is within $100 billion of the ceiling and additional borrowing is required, with a second increase of $500 billion subject to the same conditions, but subject to a joint Congressional resolution.
Impact on Student Aid
For the Future
The bill calls for the creation of a 12-member Joint Committee to report legislation by November 23, 2011 that would propose to reduce the deficit by an additional $1.5 trillion through 2021. The Committee would be composed of six Democrats and six Republicans coming in equal numbers from the House and the Senate. Although other programs of student financial aid were not immediately impacted, there is an opportunity for future reductions in programs based on where the cuts are taken.
SAVE PELL: On July 25 supporters across the country will band together for 'Save Pell Day,' an online day of action to petition lawmakers to protect the Federal Pell Grant program. If Congress reduces funding for Pell Grants in the 2012 budget, it would cut awards for the nation's neediest students in 2012-13.
Learn more and 'Like' the Save Pell Facebook community page today.
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