`Economic Relief for Students!`

Students are struggling under the weight of the recession. Lay-offs and other economic difficulties are affecting the ability of families to help with college costs at the same time that states are slashing higher education budgets and college endowments plummet. The result is rising tuition, increased demand for student aid, and even caps on enrollment at many colleges and universities.

The House of Representatives recently passed the American Recovery and Reinvestment Act (often called the “economic stimulus package”), which includes relief for students and investments in higher education. The bill is currently being considered in the Senate. Unfortunately, many conservatives are singling out Pell grants and other common sense provisions that would help students in the American Recovery and Reinvestment Act.

Students can't afford to wait until the economy improves, but they can take action now to make sure that the pro-education policies are included in the final version of the American Recovery and Reinvestment Act, and that they are passed by Congress.

>> Raise Pell Grants – Increase the maximum award by $500 to $5,350.

>> Increase work study opportunities – Provide an additional $490 million to provide more on-campus jobs for low and middle income students.

>> Reform higher education tax credits – Make tax credits partially refundable up to $1,000 to make the program work for low income families, and allow textbooks costs, in addition to tuition and fees, to count towards the credit.

>> Invest in higher education – Provide $6 billion for higher education modernization, renovation, and repair. These projects can create or save jobs and counteract state budget cuts while helping our system of higher education to prepare for the challenges of the 21^st century.

>> Keep student loan limits at current levels – The version of the bill that was passed by the House of Representatives increases the amount of federal student loans a student can borrow by $2,000 a year. Just last year there was an increase of $2,000, which, combined with the proposed loan limit expansion, would increase total student loan debt by as much as $10,000 for many students. Many college graduates already have debt levels that would be unmanageable at the salary level of a teacher, and increases in student loan debt works against the economic benefits of a college degree.

`Take Action:`

>>Learn More

From Inside Higher Ed (1/26/09):

The Stimulus and Higher Education

	House	Senate
Aid for Students
Pell Grants	$15.6 billion to increase maximum grant by $500 and eliminate shortfall	$13.9 billion to increase maximum grant and close shortfall
College Work Study	$490 million	N/A
Loan Limits	Increase limit on unsubsidized loans by $2,000	N/A
Higher Education Tax Credit	Temporarily replace Hope tax credit with $2,500 credit available for four years of college. Credit phases out for individuals with income of $80,000, $160,000 for couples. Credit is 40 percent refundable. Cost: $12.5 billion over 10 years	Temporarily replace Hope tax credit with $2,500 credit available for four years of college. Credit phases out for individuals with income of $80,000, $160,000 for couples. Credit is 30 percent refundable. Cost: $12.9 billion over 10 years
529 savings plans		Allow computers to count as qualified expenses under 529 savings plans
Education Aid for States	$39 billion for school districts and public colleges, distributed through existing formulas	$39 billion for school districts and public colleges, distributed through existing formulas
	$25 billion to states for “high priority” needs, “which may include education”	$25 billion to states for “high priority” needs, “which may include education”
Infrastructure
College/School Facilities	$6 billion for “higher education modernization, renovation, repair"; $1.5 billion for grants and loans to colleges, schools, and local governments for energy efficiency	$3.5 billion to improve energy efficiency and technology infrastructure of higher education facilities
National Institute of Standards and Technology	$300 million to construct research buildings at colleges	N/A
Agricultural Research Service	$209 million for facilities	N/A
Scientific Research
National Science Foundation	$2 billion for research grants, $900 million for equipment and facilities, and $100 million for science education	$1.4 billion for grants and infrastructure
NASA	$600 million for climate change and other research	$1.5 billion
National Institutes of Health	$1.5 billion for biomedical research, $2 billion for facilities renovation and capacity building	$3.5 billion for biomedical research
Energy Department	$2 billion for energy efficiency research; $2 billion for basic physical science research	$40 billion over all, an undetermined portion for research
Pandemic research	$900 million
Job Training	$4 billion	$3.4 billion
Other
Preparing health care workers	$600 million for training primary care doctors, dentists and nurses	N/A
Student Aid Administration	$50 million to help Education Department administer student aid in changing student loan environment	N/A
Help for Lenders	$10 million for larger subsidies for lenders	N/A
Arts	$50 million for National Endowment for the Arts	N/A

Back to action alert

November 22, 2009

Subject:

Dear member of Congress,

I am writing to ask that you do everything in your power to make sure that Congress includes immediate, targeted, and substantial relief to students and young people in the American Recovery and Reinvestment Act.

The recession has hit higher education hard. At the same time that family budgets are being stretched to the max by lay-offs, the credit crisis, and the housing crisis, school is becoming more and more expensive. States around the country are slashing funding to colleges and universities, and some are even curtailing state financial aid programs. Schools, even private schools, are also suffering as they see their endowments and donor base shrink.

With rising tuition, increased competition for student aid, and even enrollment caps at some major colleges, students are downgrading their college hopes, taking on dangerous levels of debt, working long hours, or giving up on higher education all together. America is beginning to fall behind its allies when it comes to education - today’s young people will be the first generation to be less educated than their parents.

We cannot afford to allow this recession to further cripple America’s ability to be competitive on a global stage. Specifically, Congress should:

- Raise Pell Grants – Increase the maximum award by $500 to $5,350.

- Increase work study opportunities – Provide an additional $490 million to provide more on-campus jobs for low and middle income students.

- Reform higher education tax credits – Make tax credits partially refundable up to $1,000 to make the program work for low income families, and allow textbooks costs, in addition to tuition and fees, to count towards the credit.

- Invest in higher education – Provide $6 billion for higher education modernization, renovation, and repair. These projects can create or save jobs and counteract state budget cuts while helping our system of higher education to prepare for the challenges of the 21st century.

- Keep student loan limits at current levels – The version of the bill that was passed by the House of Representatives increases the amount of federal student loans a student can borrow by $2,000 a year. Just last year there was an increase of $2,000, which, combined with the proposed loan limit expansion, would increase total student loan debt by as much as $10,000 for many students. Many college graduates already have debt levels that would be unmanageable at the salary level of a teacher, and increases in student loan debt works against the economic benefits of a college degree.

I would appreciate hearing about your ideas to help protect students and young people during these tough times.

Sincerely,

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