The Nation: Time to Raise Pell!

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Time to Raise Pell!
posted by The Nation on 10/07/2009 @ 2:08pm

By Pedro de la Torre


Congress is facing a stark choice this month between doing the right thing and bowing to special interests.

In May, President Obama proposed a major reform that would cut wasteful subsidies to student loan companies by eliminating the Federal Family Education Loan Program (FFELP) and originating all future loans through the already operating Direct Loan Program. This plan would create $87 billion in savings over ten years, which would be reinvested in grants for low and middle income students. The plan would also help millions of young people benefit from higher education by investing in community colleges and minority serving institutions and creating state/federal partnerships for college access and completion.

Last month, the House, by a large margin, passed a bill, the Student Aid and Fiscal Responsibility Act (SAFRA), in line with the President's proposal. However, the vote in the Senate is expected to be much closer and more contentious.

So, if the proposed bill would help make college more affordable without costing taxpayers an additional penny, why would a vote in favor of it be controversial? It's certainly not because people don't recognize that there's a problem. We've seen the numbers over and over:

•The average student debt level is now $22,700

•Families earning less than $40,000 have an average unmet need (aka, the amount students still owe in college costs after taking into account all grants, loans, and the expected family contribution) of $5,622 to $7,204

•Pell Grants, federal grants for students with the most financial need, covered 72 percent of the cost of attending a public four year college in 1976, but only 32 percent of this cost in 2008.

•The US is falling behind in education relative to other countries: Americans ages 35-54 rank second worldwide in percentage of college graduates, but those ages 25-34 now rank 10th. ........(more)

The complete piece is at: http://www.thenation.com/blogs/question/481825/time_to_raise_pell