	Introduction

The House and the Senate approved H.Rept. 111-89 , the conference report to accompany S.Con.Res. 13 , the Concurrent Resolution on the Budget for Fiscal Year 2010, on April 29, 2009. The FY2010 budget resolution includes reconciliation instructions directing the Senate HELP Committee and the House Education and Labor Committee to report changes in laws within their jurisdictions to reduce the deficit by $1 billion for the period of FY2009 through FY2014. The instructions for the House specifically direct the Education and Labor Committee to report a bill that invests in education while reducing the deficit by $1 billion over the FY2009-FY2014 period. On July 21, 2009, the House Education and Labor Committee marked up H.R. 3221 , the Student Aid and Fiscal Responsibility Act of 2009; and on July 27, 2009, the committee reported H.Rept. 3221 . On September 17, 2009, the House passed H.R. 3221 by a vote of 253 to 171. It would also establish several new non-HEA programs. The authority to make loans under the FFEL program would be terminated after June 2010. CBO estimates that this would reduce mandatory spending by $41.8 billion over the FY2009-FY2014 period, and by $86.8 billion over the FY2009-FY2019 period. Mandatory funding for HEA programs serving Historically Black Colleges and Universities (HBCUs) and other Minority-Serving Institutions would be provided for FY2010 through FY2019. Mandatory funding would be provided to establish and fund three Modernization, Renovation, and Repair grant programs for school facilities. These savings would be large enough to achieve the $1 billion reduction in spending specified in S.Con.Res. 13 , and to offset increases in mandatory spending that would result from the other new or expanded education programs and benefits proposed under H.R. 3221 . Overall, CBO estimates that H.R. 3221 , as reported in H.Rept. 111-232 , would reduce mandatory spending by $13.3 billion over the FY2009-FY2014 period, and by $7.8 billion over the FY2009-FY2019 period. CBO also estimates that enactment of the proposals reported in H.R. 3221 , if fully funded, would increase discretionary spending by $3.6 billion over the FY2009-FY2014 period, and by $13.5 billion over the FY2009-FY2019 period. 3221 . 3221 . This report will be updated as warranted to track legislative developments. Proposed Amendments to the Federal Pell Grant Program

H.R. Federal Student Loan Reform

The Department of Education currently administers three major federal student loan programs that are authorized under Title IV of the HEA: the Federal Family Education Loan (FFEL) program, the William D. Ford Federal Direct Loan (DL) program, and the Federal Perkins Loan program. These programs are briefly described below. CBO projects that the termination of lending under the FFEL program and the shift to all federal student loans being made under the DL program would result in a reduction of $40.7 billion in mandatory spending over the period from FY2009 through FY2014, and $74.8 billion in mandatory spending over the period from FY2009 through FY2019. Federal Direct Perkins Loans

H.R. 3221 would amend Part E of Title VII of the HEA to establish the College Access and Completion Innovation Fund (CACIF).The fund would include the College Access Challenge Grant Program (CACG) that was enacted under the CCRAA in 2008, two other programs, and an evaluation. Additional Programs

In addition to making changes to the Higher Education Act, H.R. Early Learning Challenge Fund

H.R. The Secretary would be required to submit an annual report to the House Committee on Education and Labor, and the Senate Committee on Health, Education, Labor, and Pensions. American Graduation Initiative

H.R.
The House and the Senate approved H.Rept. 111-89, the conference report to accompany S.Con.Res. 13, the Concurrent Resolution on the Budget for Fiscal Year 2010, on April 29, 2009. The FY2010 budget resolution includes reconciliation instructions directing the Senate Committee on Health, Education, Labor, and Pensions (HELP) and the House Committee on Education and Labor to report changes in laws within their jurisdictions to reduce the deficit by $1 billion for the period of fiscal year (FY) 2009 through FY2014. The reconciliation instructions for the House specifically direct the Committee on Education and Labor to report a bill that invests in education while reducing the deficit by $1 billion over the FY2009-FY2014 period.
On July 21, 2009, the House Committee on Education and Labor marked up H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009 (H.Rept. 111-232). On September 17, 2009, the House voted 253 to 171 to pass H.R. 3221.
H.R. 3221 would terminate authority under the Higher Education Act (HEA) of 1965, as amended, to make loans under the Federal Family Education Loan (FFEL) program after June 2010. The Congressional Budget Office (CBO) estimates that this would reduce mandatory or direct spending by $41.8 billion over the FY2009-FY2014 period, and by $86.8 billion over the FY2009-FY2019 period. These savings would be large enough to achieve the $1 billion reduction in spending specified in S.Con.Res. 13, while offsetting increases in mandatory spending that would result from the expansion of several existing HEA programs, and the establishment and funding of several proposed new programs.
Overall, CBO estimates that H.R. 3221 (as reported in H.Rept. 111-232) would reduce mandatory spending by $13.3 billion over the FY2009-FY2014 period, and by $7.8 billion over the FY2009-FY2019 period. CBO also estimates that enactment of the proposals made in H.R. 3221, if fully funded, would increase discretionary spending by $3.6 billion over the FY2009-FY2014 period, and by $13.5 billion over the FY2009-FY2019 period.
In addition to terminating the authority to make loans under the FFEL program, H.R. 3221 would fund expansions of several existing HEA programs and benefits, including the Federal Pell Grant program, the William D. Ford Federal Direct Loan (DL) program, programs serving Historically Black Colleges and Universities (HBCUs) and other Minority-Serving Institutions, and the College Access Challenge Grant program, and would alter procedures for determining the eligibility of students for need-based federal student aid. H.R. 3221 also would establish several new programs under the HEA, including a new Federal Direct Perkins Loan offered through the DL program to replace the current Federal Perkins Loan program, and a College Access and Completion Innovation Fund.
Several major non-HEA programs would also be established and funded by H.R. 3221. These include a series of Modernization, Renovation, and Repair grant programs for school facilities, an Early Learning Challenge Fund to support early childhood education, and an American Graduation Initiative to support community colleges.
This report reviews and briefly describes the proposals contained in H.R. 3221 to amend programs authorized under HEA and to establish and fund additional new education programs. It will be updated as warranted to track legislative developments.