Families who have struggled — or who are currently struggling — to send a child to college will be pleased that Congress has acted to remove the middle man from student loan programs and put the money that is saved into helping more students attend college.
Congress recently voted to stop providing costly subsidies to banks to make student loans. Ending these subsidies to banks will save approximately $61 billion over the next 10 years, savings that will go directly to strengthening the Pell Grant program.
Today, 85,000 Maryland students receive Pell Grants to help them attend college, and it is anticipated that increasing funding for the program will make it possible for an additional 15,000 Maryland students to receive Pell Grants.
The federal Pell Grant program is considered the foundation of federal student financial aid, to which aid from other federal and nonfederal sources can be added. Pell Grants provide direct grants through approximately 5,400 participating institutions to students with financial need.
Pell Grants are usually awarded to undergraduate students who have not earned a bachelor’s or a professional degree, and, unlike a loan, a Pell Grant does not have to be repaid.
A strong Pell Grant program is essential to helping a new generation of Americans enter college and gain the education and skills they need for jobs in the 21st Century. The Bureau of Labor Statistics projects that by the year 2018, nearly 75 percent of all new jobs will require an associate’s degree.
In the 2008-2009 award year, 6.2 million Americans relied on Pell Grants to help pay for college and career training. The vast majority of those students — 89 percent — came from families making less than $40,000 a year.
By redirecting the subsidies that we had been paying to banks, we can strengthen the financial solvency of the Pell Grant program. The declining economy and the return of more students to college, has placed additional burdens on the Pell Grant program.
In FY 2011, the Pell Grant program would have faced a $19 billion shortfall, a serious problem that could have reduced the number of grants being awarded and decreased the amount of the grants. By ending costly subsidies to banks, we will be able to avoid significant cuts to the Pell Grant program and other important domestic priorities.
The legislation also entitles qualified non-profit lenders to service Direct Loans and provides about $1.5 billion in additional funding to pay for these efforts. It also more than doubles the investment in the College Access Challenge Grant program.
These formula grants to states help organizations (usually non-profit lenders and guaranty agencies) provide financial literacy and debt management counseling to increase the number of low-income students who are prepared to enter and succeed in college.
This bill represents real reform of the student financial aid system. It will ensure that taxpayer money will go directly to helping more students attend college — and not to banks that have benefited from these subsidies for far too long.
U.S. Sen. Benjamin L. Cardin, D-Md.
Opinion
Congress helps college families
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No to repeal
Just as he did last year, Gov. Martin O’Malley is attempting to end a tax credit that benefits the local coal industry. If he succeeds, the incentive to purchase Maryland coal will be substantially diminished.
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Garrett has better uses for taxpayers’ money
At a time when Garrett County schools are threatened with closure, the Adventure Sports Center International’s (ASCI) executive director mounts a public relations campaign requesting $3 million more from the commissioners. (“On eliminating ASCI’s $3M debt: Exec. speaks out,” Jan. 20 times-News, Page 1A)
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Here’s what befell those who could have solved the problems
Something to consider:
Why are schools being closed?
Why has the housing market become so volatile?
Who is the person destined to cure cancer?
Why is Social Security on the brink of disaster?
Where is your doctor from? Don’t we have enough doctors graduating stateside?
And where is the cure for the common cold? Not enough tax revenue for fed and state and local governments is a real problem.
One very good answer is that these students, house buyers, medical researchers and inventors were never born. -
These ideas might resolve smoke detectors’ shortcomings
From what I have read/heard about the recent fires in the area, in at least a couple of cases smoke detectors were found in the ruins but were disconnected or had no battery.
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Your votes can help raise funds for a new county animal shelter
Please help the Allegany County Animal Shelter by voting for it at the Shelter Challenge being sponsored by The Animal Rescue Site.
Several months ago we were able to win $1,000 (towards a new shelter) by being the No. 1 vote-getter in the state of Maryland. With your help we can do this again and possibly win more. -
Keeping streams, waterways clean will help bay
The Times-News reported in December on Maryland’s efforts to reduce pollution in the Chesapeake Bay and how Allegany County did its part by submitting a local plan to the Maryland Department of the Environment (“State’s bay cleanup plan to EPA concerns clean water advocates,” Dec. 20, Page 1A).
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$3 million would be better spent on schools, not ASCI
I am a local Garrett County resident, pay taxes and am a voter. I am very concerned about the finances of Garrett County Commissioners budget and the Garrett County Board of Education’s budget.
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County commissioners may be endorsing hasty, nasty outcome
These comments respond to your reader, Scott Cline, PhD “petroleum engineering” of Stanley, N.Y. (“Unfounded fears about shale gas obscure facts,” Jan. 25 Times-News).
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Your $1 per week would help United Way help the community
The United Way of Allegany County, and really all United Ways included in the United Way of the Potomac Highlands, had hoped to complete the campaign by the end of January.
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Stand up for the Constitution and the Church
I wanted to follow up on my previous letter that ran in the Jan. 1 Times-News (“So, what has the devil now dealt us?”).At that time, I voiced my frustrated opinion with the U.S. Conference of Catholic Bishops (USCCB) for making nicey-nice with the Obama Administration to get Obamacare passed, only to get burned later when it came to forcing organizations providing health plans to cover contraception, abortifacients, and sterilization regardless of their religious beliefs.
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