WASHINGTON, D.C. – U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, issued the following statement praising President Obama’s higher education budget proposals.
“President Obama made it very clear that we should review every program to make sure that its operating in the best interests of taxpayers and that we should eliminate excess waste wherever we find it. The President’s proposal to save taxpayers almost $50 billion within the higher education programs while increasing benefits for students will be seriously considered by Congress.
“Today he has put forth a solid plan to make federal student loans more reliable, while saving taxpayers billions of dollars, and to ensure that the value of the Pell Grant scholarship reflects families’ increasing financial burdens.
“In today’s economy, we must do everything we can to make sure that the federal student aid programs that students and families depend on are as reliable and efficient as possible. I look forward to working with him and Secretary Duncan to make college more affordable and accessible for every qualified American who wants to attend.”
BACKGROUND
Among other things, the President’s budget proposes:
FEDERAL STUDENT LOANS: There are two types of federal student loans: the Direct Loan Program (where loans are made directly to students by the government) and the Federal Family Education Loan Program (when loans made by private lenders are guaranteed by the federal government). Both types of loans carry the same interest rates and terms for students, but the Direct Loan program is less expensive and yields significant taxpayer savings. For more information on these programs, click here.
President Obama proposes that, beginning in 2010-2011, all new student loans would be originated through the Direct Student Loan program. The Office of Management and Budget estimates this would save taxpayers $24.3 billion over five years and $47.5 billion over ten years by making the program more efficient.
PELL GRANT SCHOLARSHIPS: The President also proposes to index the maximum Pell Grant scholarship award to the Consumer Price Index plus one percent, which will better reflect the economic realities students and families face.
President Obama has already enacted a substantial investment in k-12 and higher education in his economic recovery plan, including a significant $500 increase in the Pell Grant scholarship for students next year. When combined with other increases enacted during the 110th Congress, by 2010 the maximum Pell Grant award will have increased by $1,500 – or 37 percent – since Democrats regained control of the Congress. For more information, click here.
Additional media articles about President Obama's proposed changes to the direct lending program
“Today he has put forth a solid plan to make federal student loans more reliable, while saving taxpayers billions of dollars, and to ensure that the value of the Pell Grant scholarship reflects families’ increasing financial burdens.
“In today’s economy, we must do everything we can to make sure that the federal student aid programs that students and families depend on are as reliable and efficient as possible. I look forward to working with him and Secretary Duncan to make college more affordable and accessible for every qualified American who wants to attend.”
BACKGROUND
Among other things, the President’s budget proposes:
FEDERAL STUDENT LOANS: There are two types of federal student loans: the Direct Loan Program (where loans are made directly to students by the government) and the Federal Family Education Loan Program (when loans made by private lenders are guaranteed by the federal government). Both types of loans carry the same interest rates and terms for students, but the Direct Loan program is less expensive and yields significant taxpayer savings. For more information on these programs, click here.
President Obama proposes that, beginning in 2010-2011, all new student loans would be originated through the Direct Student Loan program. The Office of Management and Budget estimates this would save taxpayers $24.3 billion over five years and $47.5 billion over ten years by making the program more efficient.
PELL GRANT SCHOLARSHIPS: The President also proposes to index the maximum Pell Grant scholarship award to the Consumer Price Index plus one percent, which will better reflect the economic realities students and families face.
President Obama has already enacted a substantial investment in k-12 and higher education in his economic recovery plan, including a significant $500 increase in the Pell Grant scholarship for students next year. When combined with other increases enacted during the 110th Congress, by 2010 the maximum Pell Grant award will have increased by $1,500 – or 37 percent – since Democrats regained control of the Congress. For more information, click here.
Additional media articles about President Obama's proposed changes to the direct lending program
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