Obama to Seek Changes ($100 Billion Cut Over Ten Years) in Pell Grants

[tekisui]

Source: AP/Yahoo! News

WASHINGTON – President Barack Obama's budget plan would cut $100 billion from Pell Grants and other higher education programs over a decade through belt-tightening and use the savings to keep the maximum college financial aid award at $5,550, an administration official said.

Nearly $90 billion of the projected savings would be achieved through two changes, said the official, who spoke on condition of anonymity ahead of Monday's release of Obama's 2012 budget. The spending plan applies to the budget year that begins Oct. 1.

Congress would have to approve both changes.

The first proposal would end the "year-round Pell" policy that let students collect two grants in a calendar year, with the second grant used for summer school. The official said the costs exceeded expectations and there was little evidence that students earn their degrees any faster.


more: http://news.yahoo.com/s/ap/20110213/ap_on_re_us/us_obama_pell_grants

[RUMMYisFROSTED]

1. "Onward Sputnik!"

:patriot:

[okieinpain]

2. well you have to give him credit, he's trying to save the program

while being able to say the program has did it's part in contributing to the budget. where as the repugs just want to kill it all together.

[babylonsister]

3. Damn Obama, he's trying to uneducate kids now!

:sarcasm: in case there was any confusion.

[FrenchieCat]

4. One simply has to read the entire article to get a better handle

on what it all means. It certainly isn't anything I like, but under the circumstances,
it will have to do.

[Avant Guardian]

9. Have to pay for those Bush tax cut for the rich

Everyone has to sacrifice so the rich can have their little nest egg.

[ProSense]

5. The sentence bolded doesn't say all the cuts are to Pell Grants. In fact

only $60 billion are cuts to Pell Grants, and the savings are being redistributed to maintain the current Pell award levels.

CNN:

WASHINGTON (CNN) -- President Obama's budget Monday will propose cutting $100 billion dollars from the Pell grant program and other higher education programs, but use those savings to ensure that eligible students would be able to receive the current maximum award of $5,500 per school year.

<...>

The proposal calls for the end to the policy where students could qualify for two grants in one year -- one for the regular academic year and a second for summer school. Only one Pell grant per year would be awarded.

According to an Obama administration source, the savings would be $8 billion dollars next year, and $60 billion dollars over 10 years.

Lew said the second change would affect graduate and professional school students, reducing loan subsidies for these students.

<...>

[Avant Guardian]

8. 'Only' $60 billion

n/t

[woo me with science]

6. Graduate students will also end up owing/paying more on their loans:

"Interest on graduate school loans will begin building up while students are still in school."

"...people who emerge from graduate school...face, on average, more than $40,000 in debt, according to FinAid.org. Students pursuing a medical degree can face more than $100,000 in debt."

http://www.huffingtonpost.com/2011/02/13/graduate-students-higher-debt-obama-budget_n_822603.html

[StarsInHerHair]

7. and you KNOW we're gonna hear about the lower college grad rates than in

India and China-where their tuition may be free.