Affordable Higher Education News

Today the U.S. House of Representatives released details of its Economic Recovery package. The proposal contains meaningful policies that help to keep college affordable and accessible during tough economic times.

“We applaud the House for both helping the economy in the short run and for increasing investment in higher education for the long run,” stated Angela Peoples, Legislative Director of the United States Student Association.

The provisions that will keep college within reach include: a $15.6 billion increase to the Pell grant program which increases the maximum grant award by $500, from $4,731 to $5,350; an increase in work study funds provides for more on-campus jobs for low and moderate income students in return for grant aid; and a partially refundable tax credit for higher education. Families and independent students can use the tax credit to offset tuition, fees, and textbook costs after taxes, and up to $1,000 of the credit is refundable.

However, the bill also includes language that increases federal student loan limits by $2,000 each year over four years. This plan comes after a similar increase of $2,000 was passed last year, and, taken together, could increase student loan debt by $10,000. Increasing student debt decreases the broader economic benefits of a college degree.

Rich Williams, the USPIRG Higher Education Associate, said, “Students and families across the country can use as much help as possible to ease the burden of paying for college. This bill has a set of provisions that on the whole can make a positive impact on college access and affordability.”

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In response to details from the House Appropriations Committee: http://appropriations.house.gov/pdf/PressSummary01-15-09.pdf