U.S. Rep. Larry Kissell has joined 252 of his U.S House of Representative colleagues in voting to pass the Student Aid and Fiscal Responsibility Act of 2009.

The bill overhauls the current student loan system by consolidating student loans into one loan program. Currently, there are two student loan programs. The Federal Family Education Loan program subsidizes banks and other lenders to originate and deliver loans. Direct Loan program uses federal Treasury dollars to originate and deliver loans directly.

“We must do everything we can to ensure our children have the opportunity to attend college. A college education is critical to success in today’s market and is tied to our economic future,” Kissell said. “At a time when we need to do everything we can to promote our economic future, it is imperative that we continue to invest and expand education opportunities for our youth.”

By using Direct Loan exclusively, it provides more stability to colleges and borrowers while generating $87 billion in saving to reinvest into the Pell Grant program, Kissell said.

The legislation invests almost $40 billion in the Pell Grant program, and raises the maximum grant to $5,550.

Kissell said that will allow hundreds of thousands students who didn’t qualify to receive aid.

In addition, it makes more resources available for community colleges by creating a Community College Challenge Grant which partners local schools and businesses to improve instruction and student support services. Amendments to the bill also directed prioritized funding for colleges in high-unemployment areas and special funding for veterans and dislocated workers.