Barrack Obama and his administration have proposed one of the largest economic spending bills in recent memory. After being altered by both the Senate and House of Representatives, they have come up with a mind blowing 787 million dollar stimulus bill. This decision will go down as one of the biggest changes in the United States students have an opportunity to take advantage of this economic relief.
The current situation has created fear among everyone in the country. People are getting laid off, positions are being eliminated, and the unemployment rate keeps getting higher and higher. However, amidst all the fear, there is something good that comes out of these troubling times, a revaluation of how we are operating as a country. In this evaluation, all of the fat is getting trimmed off and the government is remembering what is important, education! The new stimulus bill has proposed new funding to support higher education and make sure that students are provided with the opportunity to obtain funding to pay for school.
On January 28, 2009, the Committee on Appropriations released, "Summary: American Recovery and Reinvestment" which gave a summary of the allocations of federal funding as passed by the House of Representatives. The summary indicated that there will be a large sum of money to be allocated toward higher education. The new bill is set to do the following for higher education:
-Pell Grants: $15.6 billion to increase the maximum Pell Grant by $500, from $4,850 to $5,350.
-College Work-Study: $490 million to support undergraduate and graduate students who work.
-Student Loan Limit Increase: Increases limits on unsubsidized Stafford loans by $2,000.
-Student Aid Administration: $50 million to help the Department of Education administer surging student aid programs while navigating the changing student loan environment. (http://appropriations.house.gov/pdf/PressSummary01-28-09.pdf )
The increase in federal funding gives students the opportunity to survive during the tough economic times, however, you have to take advantage of what is being given to you. With the loan limit increase, you can now take out a little extra money to help pay for those rising tuition costs. For those in low income families who are really struggling, the Pell Grants have been raised to provide you and your family with a larger cushion. And lastly, to those of you who are taking the hard route and working your way through college, you will have aide available to you as well.
The moral of the story is, the government is looking out for the student because they need you, so hang in there, focus on your studying, and get your education. The worst thing you can do is panic during these troubling times and quit school. Take advantage of the extra funding and get a loan to make sure you do this education thing right. You definitely do not want to be the only person without a college degree after the recession is over.
