The January 20 inauguration of Barack Obama into the presidential office should set into motion a series of initiatives focused on making college a great deal easier to pay for than it was before. It’s Obama’s understanding that “America’s workforce must be more innovative and productive than our competitors,” and what better way to ensure that happening than by sending our youth to college? Kudos, Mr. President-Elect, and while we’re at it, let’s give a little rundown of the big O’s plan, so you know what new developments you can look forward to.
Development of the American Opportunity Tax Credit
This sounds pretty ideal, right? In the Obama Administration’s mind, the American Opportunity is one steeped in give-and-take, with the payoff being wholly worth the effort you’re putting in. Obama wants to set up a tax credit, one people become eligible for based on their family’s tax data from the previous year. If you’re deemed eligible, you can count on Uncle Sam covering for you two-thirds the cost of tuition at the average public college or university. That goes on top of a $4,000 College tuition credit made available to most Americans. What’s the catch? A mere 100 hours of public service a year, which you can do either during the school year or over the summer months.
Simplified Financial Aid Application Process
It’s about time! The Free Application for Federal Student Aid (FAFSA) is currently five pages long and asks applicants 127 questions. Do you realize how long that is? It’s longer than most federal tax returns! Coincidentally (or maybe not so coincidentally), over 1.5 million high school students who were eligible for a Pell Grant failed to apply for such aid in 2004. Barack’s got plans to get rid of the FAFSA and make the financial aid application process as easy as checking a box on family tax forms, authorizing each family’s tax information to be used by Financial Aid services to determine student eligibility.
Nationwide Implementation of Early Assessment Programs
Here’s a program that probably won’t save you much money, but it could end up saving you a great deal of time. Certain states have put into place Early Assessment Programs set up to help 11th graders and their families decide if they’re on track to be college ready by the time they graduate. The voluntary test and assessment is focused on informing students about what they need to do to prepare for college while they still have time to change their ways if necessary. Obama’s administration likes the programs California and Missouri have set up so much that they’re set to provide $25 million annually in matching funds for states to develop the same types of programs, making everything a good bit easier for you to figure out just where you stand.
Make Pell Grants as Beneficial as They Used to Be
Pell Grants used to cover 55% of costs at public four-year colleges, but these days they only handle 32%. That’s a no-good statistic that Barack Obama’s long been working to do something about. The first bill he introduced in the U.S. Senate suggested that the maximum Pell Grant get raised from $4,050 to $5,100. Since, he’s worked with the Senate Health Education Labor and Pensions Committee to get maximum Pell Grants up to $54,000. And he’s not done yet. One of Obama’s main goals to ensure that Pell Grants keep pace with the rising cost of college inflation.
Implementation of Community College Partnership Programs
Aside from financially rewarding the community colleges that increase their number of transfer students to four-year institutions, the Obama Administration is focused on conducting more thorough analyses of the types of skills and technical educations that community colleges should be teaching. It’s also focused on implementing new associate of arts degree programs that cater to emerging industry and technical career demands. Essentially, America’s boss wants to ensure that community college students put themselves in the best possible situation to either apply their skills in the workforce once they graduate or successfully transition to a four year college or university.
An Elimination of Unnecessarily Expensive Loan Programs
Right now, American colleges and universities operate with only two college loan programs: the Direct Loan system, a publicly funded operation, and the Federal Family Education Loan Program, which is funded privately by banks and lenders who receive subsidies and guarantees from the government. Not that big of a problem on the surface, but the truth is that privately funded loans cost more per loan than the Direct Loan program and provide no greater benefits, which means that it’s effectively a legitimate waste of money. It’s Obama’s intention to get rid of the FFELP, sending that program’s money into aid for students and making the Direct Loan system America’s governing student loan program.