| Last March, President Barack Obama went to | | | | Education for the Pell and other grants. They even are |
| Northern Virginia Community College to sign part of his | | | | talking about eliminating the FASFA. |
| Heath Care and Education Reconciliation Act in front | | | | (3) Get Students Ready For College - Many high |
| of a cheering audience. As it happens, this addresses | | | | school graduates simply aren't what Obama calls |
| about half of what he promised when running for | | | | "College Ready". The President proposes creating and |
| office. When campaigning, he actually proposed a | | | | revamping the high school examination system by |
| six-point plan, a lot of which has to do with financial aid, | | | | creating a voluntary test. The results are specifically |
| which this new act covered only part of. Here's the | | | | designed to inform students what they need to do to |
| entire plan: | | | | prepare for college while they still have time to do it. |
| (1) Create An Education Credit - This will make college | | | | (4) Expand The Pell Grant - Obama's Reconciliation |
| affordable for all Americans by creating a new | | | | Act actually addresses this. It plans to increase the Pell |
| American Opportunity Tax Credit. This fully refundable | | | | from a ceiling of $5,350 to hopefully slightly under |
| credit will ensure that the first $4,000 of a college | | | | $6,000 by next year. He has promised to set up a |
| education is completely free for most Americans, and | | | | system wherein the Pell will also be increased based |
| will cover two-thirds the cost of tuition at the average | | | | on the cost of going to college. |
| public college or university. Recipients of this credit will | | | | (5) The Community College Partnership Program - |
| be required to conduct 100 hours of public service a | | | | Also addressed with this new Act. Obama feels |
| year, either during the school year or over the summer | | | | community colleges have approximately 50% of all |
| months. | | | | students. Obama will create a Community College |
| (2) Simplify The Financial Aid Process - Filing for | | | | Partnership Program to strengthen community colleges |
| financial aid is getting as complicated as filing one's | | | | by providing grants. The school must be Title IV |
| taxes. Obama states the basic FASFA form needed | | | | accredited, and according to the Board of Education, |
| to even get a basic Pell Grant is longer and more | | | | this also includes online schools. |
| complicated than a standard annual tax form. | | | | (6) Eliminate Bank Subsidies - Also achieved with the |
| Research has shown that the low take-up rate of the | | | | Reconciliation Act, Obama is discontinuing the Federal |
| Pell Grant, HOPE and Lifetime Learning tax credit | | | | Family Loan System due to its high cost to both the |
| programs is likely due to the complexity of the | | | | government and the students. All loans will now be |
| application process. Among Obama's proposals is a | | | | done through the Direct Loan system, with the |
| simple box on everyone's tax form. Check that box | | | | projected savings and generated revenues going to |
| off when filing one's taxes and it allows the IRS to | | | | the Pell. |
| send relevant financial information to the Board of | | | | |