A higher education is a life-long investment. It's nice to know that the federal government feels the same way. If you watched Obama's speech to congress, he gave us sobering news about how less than 50% of students who enroll in college actually finish. The reasons are many - money, timing, family, fit, etc. By 2020, he wants an american workforce where at least 50% are college educated. Here's how his administration will help meet that goal.
The federal government will spend approximately $13 billion in stimulus funds on improving the accessibility of financial aid to college students around the country. It is predicted that the stimulus will offset about $2,500 in college costs on average for millions of lower class and middle class families. In addition, Pell Grant and College Work Study allocations are set to increase.
Pell Grant funding will increase its maximum award by $500 next school year, to $5,350. Additionally, taxpayers earning up to $80,000 for single filers or $160,000 for joint filers will be reimbursed for the first $2,000 of tuition and books. Unlike previous student financial policy, college students who file separately from their parents and who don’t make enough money to pay taxes will be eligible for a rebate. The bill will also allow families to spend money from over 500 college savings plans on computers.
What does all this really mean for families? This doesn't mean that tuition for higher education will stop or that it'll be easier to get into the more competitive schools. What it does mean is the federal government is doing what it can at this point to fund american's higher education aspirations. I'm still advising families to save for college, apply for outside scholarship money, and to look for the best possible loans.
Liam Dunfey
University Advisors
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