Obama Education Plan Would Put College Within Reach For More Wisconsin Students
Media Contacts
WISPIRG
Madison, WI – Today, WISPIRG released a new report, “Obama’s Budget: Supporting Students not Banks.” President Obama’s budget proposal makes a significant reinvestment in the Pell Grant program by cutting excessive lender subsidies from the student loan programs and redirecting that money to student aid.
“As a state and a nation, we must do everything that we can to improve the access and affordability of higher education,” said State Representative Kim Hixson (D-Whitewater), who is Chairman of the Assembly Committee on Colleges and Universities and is one of two college professors in the Wisconsin State Legislature. “I believe it is essential that we target financial aid to the students who need it – not have critical resources siphoned away to special interest bankers. I am proud to stand with President Obama in his efforts to make sure that working families get the help they need and deserve.”
“Increases in Pell grants will allow more young people to get a college degree at a time when higher education is more important than ever to the health and economic well-being of individual citizens and the national as a whole,” said UW Madison Chancellor Biddy Martin. “Every university in the country will welcome increases.”
“Getting a college degree is practically a necessity. But states are cutting public college budgets and grant aid has been stagnant for too long. As a result, students face skyrocketing loan debt upon graduation,” Tony Uhl, Chair of the UW Madison chapter of WISPIRG, noted. “The president’s plan changes the priorities within the student aid programs, putting struggling students and families first.”
The key piece of President Obama’s higher education plan includes increasing the Pell grant maximum from $5,350 to $5,550. It also makes the Pell grant more reliable, by ensuring that the maximum would increase each year to keep pace with inflation. Finally, more students would become eligible to receive Pell grant aid under the plan.
To pay for these changes, the president’s proposal cuts excessive bank and lender subsidies from within the student loan programs. The non-partisan Congressional Budget Office estimates that this cut will result in a savings of $47 billion dollars over 5 years, with $5 billion being redirected toward students in the first year alone.
“Access to higher education is more important than ever in the face of this economic downtown, and yet college is becoming even more unaffordable. Now is the time to ensure higher education is affordable to everyone, regardless of their economic status,” said Robert Kraig, Director of Program with Citizen Action of Wisconsin.
The report calculates the benefit if the full $5 billion went to students in each state. The average Pell Grant award in Wisconsin would rise by approximately $116 next year. Approximately 3,425 additional new students in Wisconsin would receive their first Pell Grant and be able to attend college.
Brittany Wiegand, Chair of the Associated Students of Madison added,“Obama’s proposal is highly beneficial to students seeking higher education, particularly given the current economic climate. The cost of college has risen exponentially, and investment in the federal Pell Grant program is essential to ensure that higher education remains accessible and affordable. As the percentage of state support for higher education continues to decrease across the nation, we need to find ways to invest in U.S. citizens so that we are able to complete in the global knowledge economy.”
“Under the President’s budget, the Pell Grant program would no longer be subject to the whims of congressional politics for its funding but rather guaranteed an increase every year so that everyone who qualifies can get the financial aid they need and deserve,” said Omer Farooque, President of United Council of UW Students. “This proposal to reinvest in the Pell grant is a firm commitment to educating a workforce that is prepared to lead a 21st century global economy.”
