CSUN University News Clippings

Obama plan includes big increases to college aid

(February 27, 2009)

By Matt Krupnick

President Barack Obama has proposed pouring billions of dollars into higher education, including improved scholarships for low-income students and incentives for states to improve graduation rates.

The strategy, outlined for reporters Thursday by Education Secretary Arne Duncan, follows Obama’s appeal Tuesday for all Americans to complete at least one year of college.

Thursday’s higher-education proposals also marked a pronounced difference from the Bush administration, which focused heavily on K-12 education. The plan is meant to improve the economy by creating more college graduates, Duncan said.

“There are too many people who are unprepared for college and too many who can’t afford it,” he said.

In a departure from the traditionally occasional increases to the Pell Grant, the federal scholarship for the poorest students, the government plans annual increases in the maximum grants. The grants, which max out at $4,860 this year, would rise to $5,550 in 2010. In California, where Pell applications have increased as much as 65 percent at some community colleges this year, administrators said the boost would help retain students with financial problems.

“Money is a huge issue,” said Tim Bonnel, financial aid coordinator for the state community colleges.

Although the Pell increases would have less effect at state universities. California State University and University of California student fees are expected to rise about 10
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percent this year.

Congress has encouraged universities to avoid sharp fee increases in the past year, but state budget problems have intervened, said Rep. George Miller, D-Martinez and the chairman of the House Education and Labor Committee.

“We have to keep after this, but there’s not much we can do right now.”

Obama also has proposed more than doubling the number of schools participating in the Perkins loan system. Schools that provide more of their own scholarships to poor students would gain more Perkins money.

The administration also plans to hand out $500 million a year to help states keep students in college.

“States and colleges need to step up and help students, and we’re absolutely willing to help fund that,” Duncan said.

Obama has called for a simplified financial aid application, known as the FAFSA. The form has long been criticized for being confusing and complicated.

Matt Krupnick covers higher education. Reach him at 925-943-8246 or mkrupnick@bayareanewsgroup.com

Publication: Contra Costa Times