Frederick Community College Facilities Master Plan Chapter 2 Environmental Scan 2-37 May, 2023 THE OBAMA-BIDEN AGENDA FOR COLLEGE AFFORDABILITY Today’s new initiatives complement President Obama’s existing agenda for higher education. At this time of economic hardship and uncertainty, the Administration’s agenda will build the country’s capacity, innovation and confidence to drive the nation to first place in the highly skilled workforce crucial for success in the 21st century. These initiatives include: • Expanding Pell Grants and College Tax Credits: The Recovery Act increased Pell Grants by $500 to $5,350 and created the $2,500 American Opportunity Tax Credit for four years of college tuition. Now, the Administration is working to make these policies permanent and ensure the Pell Grant continues to grow faster than inflation. Together, the Recovery Act and President’s Budget call for nearly $200 billion in college scholarships and tax credits over the next decade. • Reforming the Student Loan Program to Save Billions: Guaranteed student loans earn banks and other lenders large profits set by the political process rather than won in a competitive marketplace. The Administration will replace guaranteed loans with direct loans, which are administered by private-sector companies, like Sallie Mae and Accenture, selected through a competitive process and paid based upon performance. Direct loans have essentially the same terms for students, are more reliable and efficient, and will save billions of dollars to finance these investments in community colleges as well as increase Pell Grant scholarships and other investments in college opportunity. • Simplifying the Student Aid Application: The application for federal student aid has as many as 153 questions, creating major obstacle in the path of aspiring college students. More than a million students fail to apply for aid because of the application’s complexity. The Obama Administration is simplifying the financial aid process by modernizing the online application, seeking legislation that will eliminate unnecessary questions, and creating an easy process for students to use tax data to apply. The end result will be a modernized application that requests only easily obtainable personal information • Helping Unemployed Workers Get New Skills: In May, President Obama expanded opportunities for unemployed workers to go to a community college and earn new skills. The Department of Education has clarified that these workers should not be denied student aid based upon incomes they no longer earn, and the Department of Labor is working with states to allow workers to keep their unemployment benefits while receiving education and training. • Expanding the Perkins Loan Program: The low-cost Perkins loan program is an important option for students who need to borrow more than allowed under the larger Stafford loan program. The Administration will expand it from $1 billion a year to $6 billion a year, making loans available to 2.7 million more students and at 2,600 additional colleges and universities. • Helping Families Save for College: The President’s Middle Class Task Force has directed the Department of the Treasury to investigate improvements to 529 savings plans to help families
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