WASHINGTON, D.C. – As part of legislation to jumpstart and rebuild the American economy, the U.S. House of Representatives today passed significant increases in college aid that will benefit millions of students and families.
The American Recovery and Reinvestment Act, H.R. 1, which passed the House by a vote of 244 to 188 would increase the Pell Grant scholarship to its highest amount ever, and create a new tuition tax credit for families.
“A long-term recovery falls not only on the shoulders of today’s workforce but also tomorrow’s,” said U.S. Rep. George Miller (D-CA), chairman of the House Education and Labor Committee. “This economic crisis is putting enormous pressure on families’ wallets, and making it much, much harder for students to pay for college. We can’t allow this downturn to put an entire generation of students’ dreams of getting a college degree further out of reach.”
The legislation will provide immediate relief for college students in several ways, including:
“A long-term recovery falls not only on the shoulders of today’s workforce but also tomorrow’s,” said U.S. Rep. George Miller (D-CA), chairman of the House Education and Labor Committee. “This economic crisis is putting enormous pressure on families’ wallets, and making it much, much harder for students to pay for college. We can’t allow this downturn to put an entire generation of students’ dreams of getting a college degree further out of reach.”
The legislation will provide immediate relief for college students in several ways, including:
- Increasing the Pell Grant scholarship by $500. The bill increases the maximum award to $5,350 by next school year and to $5,550 for 2010. This brings the total Pell Grant funding increases to $1500 – or 37 percent – since the Democrats first regained control of the Congress. About seven million students would benefit from this increase.
- Establishing a new college tuition tax credit of $2,500. The bill establishes a new, partially refundable “American Opportunity” tax credit, expanding access for higher education tax credit to about four million students.
- Creating new work-study opportunities for college students. The bill invests $490 million in work-study opportunities for college students in fields related to their major or in community service, creating jobs for an additional 200,000 students.
# # #
