President Obama released his budget request for the coming fiscal year this morning at a middle school in Baltimore, MD. Most significantly for higher education, the proposal contains specific provisions to maintain the stability of the Pell Grant Program.
The administration’s plan to reach this goal includes identifying $100 billion in potential savings while maintaining the current $5,550 maximum grant. These savings would be achieved primarily by imposing a moratorium on year-round Pell Grants while the Department of Education studies what has caused costs to escalate so quickly and eliminating the in-school interest exemption for graduate and professional students.
“It is clear the administration has put a lot of effort and care into producing a budget that strives to protect and preserve student financial aid,” said ACE President Molly Corbett Broad in a statement released this morning. “While the higher education community does not agree with all the choices made, we support the overall objective of ensuring a viable array of student aid programs anchored by the indispensible Pell Grant Program.”
For full details on the president’s FY 2012 education budget request, see the following:
Department of Education Budget Briefing
Fiscal Year 2012 Budget Summary—Higher Education
Statement from Secretary Arne Duncan
A Significant Increase for Schools Is Proposed
The New York Times (free reg. req.)
Obama's Education Budget Would Spare Pell Grants, Increase Spending 11% Overall
The Washington Post (free reg. req.)