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Tuesday, February 14, 2012

Obama's 2013 Budget Boosts Higher Education; Shuts Out For-Profits/ Student Loan Mill Schools

5 Things President Obama's 2013 Budget Does For Higher Education

1) Rein In Higher Education Costs. Tuition & Fees, Student Loan Mills (For-Profit Schools)

President Obama's FY 2013 budget would create a $1 billion "Race to the Top" fund for colleges. In addition, Obama is seeking a $55 million to fund the "First in the World" program for colleges that "encourage productivity and efficiency."

Obama is also proposing to increase federally funded research at universities in certain areas. The National Institutes of Health would see no funding increase, for instance, but new policies would increase the money available for grants by 7 percent.

Other research areas would see between 1 percent and as much as a 110 percent increase in funding grant spending.

2) Boost Quality Of Education Spending At Community Colleges.

Obama's budget offers an $8 billion proposal to encourage colleges and businesses to work together to train 2 million workers in high-growth industries.

Obama would include financial incentives to ensure that students find permanent jobs. Inside Higher Ed reports the money would also support paid internships for low-income college students.

3) Restrict Spending At & Shut Out Most For-Profit Colleges Which Are Nothing More Than Student Loan Mills.

Some of the president's budget initiatives would shut out for-profit colleges. Obama would enact stricter rules on for-profit colleges. For-profits would not be eligible for money from the "Race to the Top" or "First in the World" programs, nor would they get any research grants.

During Obama's tenure, for-profits have increasingly come under scrutiny by the administration and been subject to investigations by Congress.

4) Increase Pell Grant Funds For Middle Class & Low Income Students Seeking Bachelors & Associate Degrees From REAL Schools NOT For-Profits!

The maximum Pell grant award would be bumped up by a hair to $5,635, an increase of $85. Pell grants have not been adjusted to the cost of college over the past 30 years, but were spared during 2011 budget negotiations.

5) Increase College Student Work Study Grants By 15% To Allow Additional Eligibility For More Middle Class & Low Income Students.

Obama's budget would increase spending on the federal work study program by 15 percent. The president is also calling for suspending a student loan interest rate scheduled to double this summer.

Inside Higher Ed reports the funding formula for the Perkins federal student loan program would be "revamped" to push colleges to keep net tuition low and provide "good value." That value would be based on the ability of graduating students to get jobs and pay off their loans, as well as a school serving a higher proportion of low-income students.

Obama is also requesting a 390 percent increase in teacher education assistance, upping the allocation from $41 to $201 million. This is particularly tailored to train more science and math teachers.

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Sources: AOL, Associated Press, Huffington Post, Youtube, Google Maps

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