The U.S. House passed a bill on Thursday that could dramatically speed up the way students apply for federal financial aid.

Officials said they hope the bill will simplify the application process, a yearly task frustrating for many college students.

“The old system was simply not efficient,” said Rep. George Miller, D-Calif., in a teleconference with student journalists this week.

The bill, titled the Student Aid and Fiscal Responsibility Act, aims to provide federal financial aid to a broader range of Americans and improve competition in America’s job market.

Representatives touted the new system, saying it would save taxpayers roughly $87 billion over 10 years by switching to the cheaper Direct Loan Program.

The UI switched to the Direct Loan Program before the 1995-96 school year. This system saves time by going directly through the federal government rather than borrowing money from an independent source, which students did with the old Federal Family Education Loan Program.

Mark Warner, the director of UI Student Financial Aid, said the new bill will increase allocated funding for the federal Pell Grant.

In 10 years, students will be able to receive 30 percent more from the grant than the current amount — all while keeping their interest rates low, he said.

For the 2008-09 academic year, 3,281 UI students borrowed federal dollars from the Federal Pell Grant loan program.

“Overall, I believe it’s a great piece of legislation,” Warner said.

U.S. Department of Education Secretary Arne Duncan labeled the bill a historic milestone.

In the conference call, he stressed the importance of ensuring more college students graduate to improve America’s international ranking.

The U.S. currently ranks sixth in the number of college graduates produced throughout the world, Duncan said, but America graduates only half of students who enter college.

“By improving our graduation rate over the next 10 years, America’s economy will grow significantly,” he said.

The government will invest savings earned from this new system into the country’s educational system.

The act will implement new standards to provide children from low-income families more pre-kindergarten and kindergarten opportunities. The bill’s savings would also allocate $12 billion to America’s community colleges.

“I believe community colleges are the gem of this country’s educational system,” Duncan said. “They provide adults with adequate training to attain a better, higher paying job.”

Duncan also noted community colleges that offer training in “green” energy technology provide students sturdy job prospects.

The fledgling proposal has students around the UI campus eager for an easier application process.

UI sophomore Josh Messer, a two-year financial-aid recipient, said he’s glad the government is investing in U.S. colleges and universities.

“I’m in favor of a better system that helps put more money in the pockets of students,” he said.

Justin Thornburg, also a sophomore and two-year financial aid recipient, said applying for financial aid has always been a daunting task.

“I’m all for making it easier,” he said.

Rep. Dave Jacoby, D-Coralville, said he usually supports legislation that improves opportunities for local students because he represents a district with a university in it.

The bill will now move to the U.S. Senate, and lawmakers hope it will reach President Obama’s desk by the end of the year. If passed, the bill would go into effect in July 2010.