photo: Alex.ragone/ BY-NC-SA

The U.S. House of Representatives recently passed the Student Aid and Fiscal Responsibility Act—an act that will reform the federal student loan system to save taxpayers $87 billion and will direct $10 billion in savings back to the Treasury. Now the bill heads to the Senate.

Saving taxpayers tons of money sounds good, but how will this new bill make college more affordable to students? To answer this question Youth Radio talked to Mike Larsen, Communications Director for Congresswoman Jackie Speier.

More after the jump.

YR: Which students will benefit from the Student Aid and Fiscal Responsibility Act?

Larsen: Most students will benefit. Any student requiring a student loan will now be able to get a lower cost and more stable loan because this act takes the loan process back from private lenders. Also, loan programs will be expanded and opportunities for low income students increased.

YR: If made into law, how will this bill expand access to financial aid programs?

Larsen: It expands the Perkins Loan Program to every college and makes it easier for students from middle-class families to qualify for Pell Grants. The biggest change, though, is simply making loans more affordable by taking them away from private, for-profit, lenders.

YR: What requirements are needed for students to benefit from this bill? Is there an income they have to meet?

Larsen: Some of the grant and assisted-loan programs have income standards because they are intended for low-income students. Most, though are open to any student.

YR: Approximately how many students will benefit from this bill?

Larsen: It will benefit any student who needs a loan to get through college and has other provisions to expand opportunities at community and technical schools.

YR: Why is it important to invest/ improve our college financial aid system?

Larsen: Private lenders have preyed on college students, charging unfair interest rates, raising rates in the middle of their college careers, and ruining their credit before they even enter the workforce. Society as a whole benefits from an educated workforce. Private lenders have discouraged young people from going to college when, as a nation, we should be encouraging it.

YR: When will this bill take affect?

Larsen: Assuming it passes the Senate and is signed by the President, it will take effect in 2010

YR: What do you think is most important for young people to know about this bill?

Larsen: Anyone who wants to go to college can now go, thanks to fair and dependable loans programs and expanded grant opportunities. Students should spend more time studying and less time filling out forms and worrying about where the tuition check is coming from.

Previously on Youth Radio:

• Budget Cuts Force Students To Work Multiple Jobs
• Who Is Really Affected By College Budget Cuts?
• Students Need an Education Bailout (VIDEO)