February 23, 2007
DC—The Student Aid Reward (STAR) Act has recently been reintroduced by Congress after two years of hiatus. The bill made its debut nearly two years ago when it was introduced by Republican Representative Tom Petri and Democrat George Miller. At that time, the STAR Act did not reach voting status.
The purpose of the STAR Act is to make more financial assistance available to students without raising the costs for taxpayers. If the act is approved, it will help Wisconsin college students statewide. In Tom Petri's district, STAR would add roughly $1.2 million in student aid. Throughout the entire state of Wisconsin, it could add about $15.5 million.
"The STAR Act will help students at no cost to taxpayers," Petri said. The act is intended to reduce fraud and wasteful expenditures of government funds and would provide more money to college students to pay for tuition without burdening taxpayers.
Petri said a study by the nonpartisan Congressional Budget Office estimates that if the Direct Loan Program increased its share of loan volume from 25% to 40%, it would save taxpayers $12.3 billion over 10 years. If Direct Loans made up 100% of loan volume, taxpayers would save more than $60 billion over 10 years.
According to EdFed loan representative Jason Picchi, "Wasting money is not good for the government or for the student. At EdFed, we try to save the student as much money as possible, and with the help of Congress, that goal will be accomplished." EdFed is always ready to help any student refinance his or her loans.
EdFed is a student loan company dedicated to assisting students and graduates with financing college expenses and managing education loans. The company specializes in education lending and is dedicated to ensuring that loans are handled professionally and in a manner that benefits borrowers.
For more information, please contact Fred Godlash at 626-243-1838.