[Educationforall] Obama Seeks to Change Pell Grants: An amendment to halt it needs our support!

[Wayne Scherer]

Tell Congress: Don't Cut Pell Grants
On February 11, House Republicans proposed slashing Pell Grants
 for 8 million students by cutting the maximum award by $845 (15%), 
which would affect students enrolling this fall.  This reduces the 
maximum grant from $5,550 to $4,705, and would reduce all students' 
grants accordingly.  Preliminary estimates are that 1.5 million students
 would be kicked out of the program and, likely, college.
The cuts are included in the "continuing resolution," which is 
necessary to keep the federal government funded in lieu of an adopted 
appropriations bill.  While the deficit is a serious issue that needs to
 be addressed, cutting access to higher education will only slow 
America's economic recovery and create bigger deficits for years to 
come.

Call Congress today and tell them to protect higher education 
opportunity by opposing the proposed cut to Pell Grants. Votes are 
expected this week in the House, so call today!
Duncan D. Hunter  (R-CA52)
Call your member: 202-225-5672
Fax your member: 202-225-0235
e-mail your member
Post on Facebook wall: DuncanHunter
Susan A. Davis  (D-CA53)
Call your member: 202-225-2040
Fax your member: 202-225-2948
e-mail your member
Post on Facebook wall: 103767526332478
Brian P. Bilbray  (R-CA50)
Call your member: 202-225-0508
Fax your member: 202-225-2558
e-mail your member
Post on Facebook wall: CongressmanBilbray



WASHINGTON – President Barack Obama's budget plan
 would cut $100 billion from Pell Grants and other higher education 
programs over a decade through belt-tightening and use the savings to 
keep the maximum college financial aid award at $5,550, an administration official said.
                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.
                Congress would have to approve both changes.

                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 administration also has expanded other programs 
that help students reduce loan payments and ultimately forgive debt they
 can no longer afford to repay.

                Another $4 billion in savings over 10 years would be 
achieved by broadening the use of IRS data to determine eligibility, 
reducing improper payments and easing the application process, the 
official said.

                Faced with growing annual budget deficits and a national debt into the trillions of dollars, Obama has said his latest budget proposal
 would save $400 billion over the next decade, including through a 
five-year freeze on some discretionary spending and cuts to programs 
that he says even he cares about.

                But at the same time, Obama wants to increase 
spending in areas he says are priorities, such as education and 
innovation, which he says are important for long-term economic growth 
and competitiveness.

                "It would be a mistake to balance the budget by 
sacrificing our children's education," he said Saturday in his weekly 
radio and Internet address, in an apparent warning to Republicans.

                House Republicans
 want to cut $100 billion from the budget proposal Obama submitted for 
2011 and education and college financial aid are expected to take a hit.

                Congress, then controlled by Democrats, did not pass a budget for 2011.

                Pell Grants are the main federal college financial 
aid program for the poor. More than 9 million students receive these 
grants every year, according to the White House, and Obama increased the maximum award to $5,550. The money does not have to be repaid.
                The administration is projecting a shortfall of more 
than $20 billion in the program for the 2012. Without action, officials 
say, the maximum award would have to be cut by more than $2,500 to meet 
demand.

                Demand increased sharply since the economic slump 
because more job seekers are going to school to learn new skills and 
they need help paying the tuition, the administration official said. 		 	   		  
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