Today the U.S. House of Representatives passed the American Recovery and Reinvestment Tax Act of 2009. Provisions within the legislation to keep college affordable are good for the economy.
"The US House of Representatives deserves credit for recognizing the challenges of paying for college in a sour economy,” stated Rich Williams, USPIRG Higher Education Associate. “Facing a shrinking job pool and shrinking assets, students and families need all the help they can get right now and, for the next several years, to pay for college. Providing an affordable college education is the single biggest thing the country can do to ensure that our economy becomes stronger and grows.”
Several provisions in the bill will offer the critical relief that students need in this economic climate. The $15.6 billion increase to the Pell grant program will bolster support for almost 6 million low income students in need of additional resources and who, without this increase, would be forced to postpone their dreams of a college education and the long term economic benefits that come with it.
The $490 million in work study funds would provide for more on-campus jobs for low and moderate income students in return for grant aid. This provision comes at a time when part time jobs and other service related jobs that students traditionally rely on are limited.
In addition, the inclusion of a partially refundable tax credit for higher education will offer families and independent students the means to offset the high cost of tuition, fees, and textbooks. With up to $1,000 made refundable, students and families from low and middle income backgrounds, having no tax liabilities, can still benefit.
However, the bill also includes language that increases federal student loan limits by $2,000 each year over four years. Increasing student indebtedness decreases the broader economic benefits of a college degree by driving up the cost of college.
Angela Peoples, Legislative Director for USSA stated, “We support these measures that keep students from all backgrounds in the classroom. These measures will ensure that students will be able to afford their education while preparing for challenges ahead.”
