Report: Affordable Higher Education

Obama's Budget: Supporting Students, Not Banks

Released by: U.S. PIRG Education Fund

The nation’s social and economic health relies on the number of students who can attain a college degree. The US will fall 16 million college degrees short of meeting workforce needs in 2025. But states have cut budgets and grants have been static, so students are plunging into deep dept to pay for college. To help struggling students and families, President Obama has proposed a significant increase to the Pell grant for 2010-2011. The boost will be paid for by cutting excessive student lender subsidies out of the student loan programs and reinvesting that money instead in student aid. A report by the USPIRG Higher Education Project estimates the impact of transferring $5 billion in student lender bank subsidies to Pell Grant recipients in each state.

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