Obama, Saying We Need Education to Win the Future, Cuts Pell Grants $100 Billion

[Donnachaidh]

http://www.opednews.com/articles/Obama-Saying-We-Need-Educ-by-Rob-Kall-110214-239.html

:snip:


My 21 year old son was listening as Obama gave this speech.

"Did he just say he's cutting Pell grants?" he asked

Yep. $100 billion dollars worth, I replied.

"I'm not voting for Obama again," he replied. "I thought he was FOR students."





More at the link --

[katnapped]

1. Hey, he IS Winning The Future

For China, India, and parts over there...

For this country not so much....

[lib2DaBone]

2. Typical.. tell them what they want to hear.. do just the opposite...

[Mojeoux]

3. Bizzaroo World nt.

[leveymg]

4. Barack and Arne are FOR privatized education, and higher ed for the elites, only.

They are NOT for students.

[Myrina]

5. My contempt for this Administration grows every frickin' day ...

... when is he ever going to do ANYTHING that benefits those of us who volunteered for and voted for him?

:wow:

[denem]

7. Then do your homework, and work out what is actually being cut

rather than reading headlines.

[FSogol]

8. +1 n/t

[Bobbie Jo]

20. +1000

My daughter is a pell grant recipient. We read. It's not the end of higher education as we know it.

Oh the drama.....

Makes for a great soundbite, though.

[denem]

6. The $100 billion is over 10 years. $80 billion is saved

by allowing one Grant per year, rather than one for the college year and a second for summer school in accelerated courses.


The maximum grant has risen from $4310 when Obama came to office to $5,500 today.

[AlabamaLibrul]

10. Wouldn't that make the maximum grant have been a number larger than $5,500

pre-Obama if you could get grants for two separate periods of schooling?

If I'm your six year old kid and I like ice cream every week and you cut my dollar allowance (which, by the way, was about 75 cents last week, so at least it's progress) down to a quarter, the only thing I know is that all of a sudden I can't afford my 50 cent ice cream from the ice cream truck guy. I'm not really concerned with anything but how I'm going to pay the ice cream man for the ice cream, because the whole world has told me that if I eat one ice cream every week it is really the only way I can get out of the ghetto.

[leveymg]

25. Yes. It appears you are right. The old ceiling was $4300 plus summer semester (1/3 - 1/4 of $4300)

I calculate the previous total at $5400-$5800), assuming that the summer Pell grant was pro-rated by credit hours on a semester or trimester basis.

[leveymg]

14. Pell Grants cover 11 percent less of an average college tuition than in 1990.

http://www.usatoday.com/money/perfi/college/2010-10-28-college-tuition_N.htm

at public four-year schools, many of them ravaged by state budget cuts, average in-state tuition and fees this fall rose 7.9%, or $555 a year, to $7,605, according to the College Board's "Trends in College Pricing." The average sticker price at private nonprofit colleges increased 4.5%, or $1,164, to $27,293.

Massive government subsidies and aid from schools helped keep in check the final price many students paid. But experts caution that federal aid can only do so much and even higher tuition is likely unless state appropriations rebound or colleges drastically cut costs.

"Just when Americans need college the most, many are finding it increasingly difficult to afford," said Molly Corbett Broad, president of the American Council on Education.

When adjusted for inflation, the tuition increases this fall amount to 6.6% at public four-year colleges and 3.2% at private ones, according to the College Board.

Many students are finding relief in expanded federal aid, including tax credits, veterans' benefits and a record expansion of the Pell Grant program for low-income students. In 2009-10, 7.7 million students received $28.2 billion in Pell Grants — an increase of almost $10 billion from the year before, according to a companion College Board report, "Trends in Student Aid."

Even so, the maximum Pell grant covers just 34% of the average cost of attending a public four-year college, down from 45% two decades ago.

[denem]

21. Obama increased the maximum grant by 28%

Agreed, that does not make up for the years of neglect since 1990.

[leveymg]

22. That's in devalued 2011 dollars. The real decline in Pell grants is far greater than the recent

increase, which I believe is factored into the 11 percent overall decline.

[denem]

23. The 11% decline is since 1990, not 2008.

[leveymg]

26. I know that. It appears that the latest increase, however, is a shell game.

If a student could previously get Pell grants of $5400 - 5800 a year, including summer school, the new annual cap of $5500 is not a "28% raise." The fact remains that college tuition has risen faster in recent years than at any time during the past 20 years. That's why Pell grants are worth 11 percent less than they were in 1990 constant dollars. Please read the article I cite.

[Sinistrous]

9. I know it is futile to inject facts into a boiling Obama-bash, but ..

http://www2.tbo.com/content/2011/feb/13/131136/obama-to-cut-year-round-pell-grants-for-summer-gra/

Nearly $90 billion of the projected savings would be achieved through two changes, said the official, who spoke on condition of anonymity ahead of Monday's release of Obama's 2012 budget. The spending plan applies to the budget year that begins Oct. 1.

<snip>

The first proposal would end the "year-round Pell" policy that let students collect two grants in a calendar year, with the second grant used for summer school. The official said the costs exceeded expectations and there was little evidence that students earn their degrees any faster.

The change would save $8 billion next year and $60 billion over a decade, the official said.

A second proposal would reduce loan subsidies for graduate and professional students. That would free $2 billion next year and save $29 billion over 10 years, according to the official.

The government currently pays the interest on student loans for some graduate and professional students as long as they stay in college. But the official said experts think the subsidy has failed to encourage more students to attend graduate school and it isn't well-matched to borrowers who have trouble repaying the loans.

The amount of the grant stays the same and eligibility stays the same. Grants for summer classes do take a hit, as do features of grants to grad students.

[stellanoir]

11. thank you

phew

[Jakes Progress]

13. Nice Spin.

Amount of grant stays same. Fewer Grants.

That is cutting. But don't let facts disturb your joy.

[Name removed]

18. Deleted message

Message removed by moderator. Click here to review the message board rules.

[enlightenment]

24. "As do features of grants to grad students".

Yep. Rather than having interest free loans during your school years (and for grad students that is years), interest will begin to accrue immediately, so you debt will be substantially more when you graduate.

That's a pretty damn big 'feature', actually.

I particularly love the apparently official meme on these issues - grad school and Pell: "experts think the subsidy has failed to encourage more students" "little evidence that students earn their degrees any faster".

The interest free 'subsidy' was not designed to "encourage more students" as much as provide some small assistance to students accruing enormous debt. (See the original Act that established what would be renamed 'Perkins' in 1986 - the 1958 National Defense Education Act: http://wwwedu.oulu.fi/tohtorikoulutus/jarjestettava_opetus/Troehler/NDEA_1958.pdf ). (See, also, the original act that established what would be renamed 'Stafford' in 1987 - the 1965 Higher Education Act: http://www.ssa.gov/OP_Home/comp2/F089-329.html).

As for the Pell Grant, that comment is absurd on its face. The summer program operated for ONE year - there is no way of determining its efficacy. Most schools were still trying to figure out the vague rules of the new '2 loans a year' thing. Any 'expert' who thinks that is sufficient time to make a determination of worth is talking out of his/her arse.

[Jakes Progress]

12. WTF. Winning the future or What the Fuck?

[Zephie]

15. Thankfully my husband just got his pell grant for this year on the 1st.

It helped us move out of our rat infested, no heat, collapsing floors rental we had suffered in for a year. I do not envy students that didn't get in their grant requests early.

[Doctor_J]

16. Yes, the defenders don't really seem to get "Cuts 100 billion"

If depriving students of summer school grants is something they want to do, then move that money to OTHER needy students. Don't take 100 billion from needy students.

[ElsewheresDaughter]

17. same as the old boss

[Historic NY]

19. Another headline reader............read the story. He isn't losing money.