January 26, 2012 by Charles Dervarics
President Obama on Tuesday outlined an election-year higher education plan that includes a major expansion of college work-study programs, more help for student loan borrowers and a stronger role of community colleges in workforce training.
President Obama on Tuesday outlined an election-year higher education plan that includes a major expansion of college work-study programs, more help for student loan borrowers and a stronger role of community colleges in workforce training.
In
his State of the Union Address, the president called for a doubling of slots in
the work-study program, through which low-income students earn funds, largely
through campus jobs, to help pay for college. The move caught at least one
budget expert by surprise.
“It’s
a program that hasn’t had an increase in a long time,” said Jason Delisle,
director of the Federal Education Budget Project at the New America Foundation.
“Many student recipients may not even recognize it as a federal program.”
Delisle
told Diverse that the White House decision to expand the program may be
linked to the themes of jobs and work, which the president emphasized heavily
in his address. The federal government allocates $978 million a year to
work-study activities.
The
president said his community college plan would help 2 million Americans
receive education and training for emerging jobs. In his speech, he cited the
work of Central Piedmont Community College in North Carolina, which worked with
Siemens Corp. to design technical training programs closely linked to new jobs
at a regional gas turbine factory.
“You
need to give more community colleges the resources they need to become
community career centers,” Obama said, where they could support information
technology and emerging manufacturing industries.
The
president did not attach dollar figures to the community college proposal,
though the administration two years ago helped secure $2 billion for similar
initiatives. At a discussion forum after the speech, Education Secretary Arne
Duncan said two-year colleges are a logical destination for these
business/education partnerships.
The
two sectors “should be partners,” he said, noting that some community colleges
are open “24 hours a day” to meet the education needs of returning students
seeking job-ready skills. “Everyone is stretched for resources,” he said, and
these colleges provide cost effective training.
Student
groups, among others, said they would welcome the additional spending on
two-year institutions, which typically carry lower costs for students. “Funding
is being cut left and right, and class sizes are going up,” said Victor
Sanchez, president of the United States Student Association. The plan is “one
way of investing in the future.”
The
president is expected to outline more details of these plans later this week
and in his fiscal year 2013 budget proposal in mid-February.
Obama
also challenged the House of Representatives and Senate to pass an extension of
low 3.4 percent interest rates on government-subsidized loans to
undergraduates. Under a law passed in 2007, those rates are scheduled to double
to 6.8 percent on July 1.
“At
a time when Americans owe more in tuition debt than credit card debt, this
Congress needs to stop the interest rates on student loans from doubling in
July,” the president said.
In
a presidential election year where taxes are a hot-button issue, Congress and
the White House face a potential battle over this issue, Delisle said. The main
reason is that the lower rate costs “several billion dollars” a year, he noted.
“It’s too expensive to pay for over 10 years,” he told Diverse, making a
year-by-year extension one potential compromise.
In
addition, the president proposed to make permanent the American Opportunity Tax
Credit, through which families can get a tax credit of up to $2,500 a year for
college tuition payments. Without congressional action, this credit would
terminate at the end of the year along with tax breaks for wealthier Americans
that began under former President George W. Bush.
While
outlining new or expanded education initiatives, however, Obama also called for
greater accountability and cost-cutting by colleges.
“We
can’t just keep subsidizing skyrocketing tuition,” he said. “We will put
colleges and universities on notice. If you can’t stop tuition from going up,
the funding you get from taxpayers will go down.”
While
he did not offer many details, a paper circulated by the White House with the
speech said the president would propose to “shift some federal aid away from
colleges that don’t keep net tuition down and provide good value.”
With
more students returning to school and seeking more flexible ways to earn a
college degree, Obama said post-secondary education is a national priority.
“Higher education can’t be a luxury,” he said. “It is an economic imperative
that every family should be able to afford.