The U.S. legislative branch is working on a bill that could make Pell Grants less costly and easier to receive.

The House recently passed the HR 3221 bill, which will restructure the way Pell Grants are funded. The bill would fund Pell Grants through federal channels rather than through private lenders.

“[The Pell grant] is the cornerstone of most financial aid packages for students,” said Roberta Johnson, director of financial aid.

Johnson explained that the legislation, passing by 253-171, is a landmark because it will save enormous costs by financing the Pell Grants directly.

The reforms would save $87 billion, Johnson said. The measure would make more money available to students without raising taxes.

But not everyone is in favor.

Tom Latham, Republican representative for Iowa’s fourth congressional district, which includes Iowa State, voted against the bill. In a press release, Latham stated that he voted against HR 3221 to “protect choice, access, competition and individual control for college students seeking student loans.”

“I don’t have students banging down my door to complain about losing their choice,” Johnson said when asked about Latham’s justification. She said the majority of students who come to her of fice for student aid do not have a choice in who they borrow from anyway.

A Senate version of the bill is being formed and is likely to be voted on before the end of the year, said a spokesperson for Tom Harkin. The issue arose partly due to a plan President Obama unveiled in February to restore the nation’s educational prowess.

According to a staff member for Sen. Chuck Grassley’s office, Grassley would oppose a Senate version of the bill because the reforms would eventually limit all student aid choices to government options. Grassley offered amendments to the federal stimulus bill to assist the financing of higher education, but the amendments were never brought to a vote.

Grassley maintains that the real issue is the pace of tuition increases. His staff member said increases to student finances are only stop-gap measures that do not address the real issue.

The Senate version of the bill is being drafted now, but it is too early to know what differences it will have from the House version. Johnson affirmed that this legislation is important as long as it increases the funding to students that can alleviate their post-graduation debt.

At a university with one of the highest post-graduation debts in the nation, a boost to student aid can mean a whole new range of opportunities after graduation.

“This is a historic piece of legislation,” Johnson said.