News Release

WITH COSTS SOARING, EDUCATION COALITION PUSHES FOR PRESIDENT’S PLAN TO MAKE COLLEGE MORE AFFORDABLE

New Report: Obama Budget Proposes Direct College Aid For More Than A Quarter Million Additional Students Nationwide

WASHINGTON – Students from low and middle class backgrounds would benefit significantly from the higher education proposals contained in the President’s budget, according to leaders of the Campaign for College Affordability. In a report released today by the Institute for America’s Future and USPIRG, more than 260,000 additional students across the country would receive Pell grants if excessive lender subsidies are cut.

With the average cost of tuition at a public college increasing by 29 percent between 2000 and 2007 and up 5 percent last year alone, President Obama’s budget calls for the cut in lender subsidies to make the financial aid system more efficient. His proposal would provide an average Pell grant of $3,357 to more than 5 million recipients nationwide.

Leaders of the Campaign for College Affordability, a major national education coalition, held a conference call with reporters today to release the new report, calling for support of the higher education investments in the president’s budget.

Speakers on the call explained how the president’s proposals would increase and expand Pell grants and Perkins loans, make the American Opportunity Tax Credit permanent, broaden the U.S. Department of Education Direct Loan program, phase out bank loan subsidies and create state and federal partnerships to help students complete their college education. (See fact sheet below.)

Robert Brandon, the coordinator of the Campaign for College Affordability coalition, said the president’s budget proposals would make major changes to the federal financial aid system so more families can pay for college.

“The nation’s social and economic well being relies on the number of students who can attain a college degree, so we need to make higher education a national priority,” said Brandon. “That’s why we formed the Campaign for College Affordability and why we are mobilizing thousands of students and families across the country to support the president’s plan.”

With more and more high school graduates putting off college because they can’t afford it, Campaign for America’s Future co-director Robert Borosage said families who are increasingly struggling to make ends meet need help to pay for college. Borosage noted that recent projections show that the country will fall 16 million degrees short of meeting workforce needs in the next 15 years.

“Our competitors among the industrial nations are outrunning us,” said Borosage. “The economic crisis only underscores the need to invest in access to higher education, especially if we are to compete globally in the long run.”

USPIRG Higher Education Program Director Christine Lindstrom said President Obama’s budget plan shifts resources to students and families, away from the banks.

“President Obama’s plan reinvests in college students by increasing the Pell grant and expanding the numbers of students who can receive aid,” said Lindstrom. “The proposal cuts excessive bank and lender subsidies from within the student loan programs and redirects the aid to those who need it most – struggling students and families.”

NAACP Washington Director Hilary Shelton said it’s time to open more doors for students who want to go to college.

“Doors of opportunity have been closed on too many people wishing to pursue higher education,” said Shelton. “I am pleased that the Pell grant increase and the expansion of the Perkins loan program will serve to ensure that those doors of opportunity remain open for all.”

United States Student Association president Carmen Berkley, who herself pays hundreds every month in student loan debt, said students across the country are on the march, mobilizing support for the president’s proposals.

“Hundreds of students from USSA affiliates across the country came to Washington earlier this week to press Congress to support efforts to make college more affordable,” said Berkley. “We plan to continue mobilizing students and working with the participating organizations within the Campaign for College Affordability to push for the proposals included in the budget and beyond.”

The Campaign for College Affordability supports increasing direct grant aid to students; making student loan debt more manageable; providing increased educational opportunities through public service; reinvesting in higher education in state budgets; and increasing investment in community colleges.

Groups in the Campaign for College Affordability coalition include the AFL-CIO, American Federation of State, County and Municipal Employees, American Federation of Teachers, American Medical Student Association, Campaign for America’s Future, Campus Progress, Demos, NAACP, National Consumers League, National Education Association, Rock the Vote, Service Employees International Union, USAction, US PIRG, United States Student Asssociation and Working America.