Yesterday, President Barack Obama signed the Health Care & Education Reconciliation Act into law.
The bill contains some tidbits to make higher education more affordable. But that’s what mean for Kentucky?
Some highlights, according to the White House:
- Increases Pell Grants – Between 2013 and 2017 the award is expected to rise from $5,550 to $5,975. By academic year 2020-2021, the Department of Education estimates that Kentucky students will receive an additional $480 million in Pell Grants.
- Expands Income Based Repayment – After July 1, 2014, students will be allowed to cap their loan repayments at 10% of their discretionary income and can have their balance forgiven after 20 years. 1.2 million borrowers are projected to qualify and take part in the IBR program between 2014 and 2020.
- Increases Support for Minority Serving Institutions – The act provides $2.55 billion to Historically Black Colleges and Universities and Minority Serving Institutions over the next decade. HBCUs and MSIs in Kentucky will be eligible to receive an additional $9.4 million in funding.
- Funding for College Access Grants - the act increases mandatory funding for the existing College Access Challenge Grant Program to $150 million per year over the next four years. Kentucky is expected to receive roughly $10 million in additional funding.
- Investments in Community Colleges & Career Training – $2 billion over four years will be provided for community colleges. The funds will help community colleges and other institutions develop, improve and provide education and career training programs suitable for workers who are eligible for trade adjustment assistance. Each state, including Kentucky, will receive half a percent of the total funds appropriated for the program each fiscal year.
The education-related provisions of the Health Care & Education Reconciliation Act are fully paid for by ending government subsidies currently provided to financial institutions making federal student loans. Ending the subsidies will free up about $68 billion, according to the Congressional Budget Office. Kentucky and its students are expected to receive more than $500 million by academic year 2020-2021 in additional benefits for higher education.
6 responses so far ↓
1 Belknap Banquo // Mar 31, 2010 at 12:28 pm
Wow, making projections out to 2020-2021. That’s only like a half dozen new Congresses and maybe three different Presidents. We must look like frikkin carp to some of these politicians.
2 eric schansberg // Mar 31, 2010 at 2:02 pm
Carp?! That was HI-larious!
Hey, anything on “how Kentucky costs”?
I appreciate the courage it sometimes takes to vote for stuff like this. I just wish it were matched by a courage to describe the benefits AND costs of the law or proposal.
3 jake // Mar 31, 2010 at 2:07 pm
Please read before commenting.
And I quote:
4 eric schansberg // Mar 31, 2010 at 2:30 pm
Mea culpa…
I went off the title and the blurbs, but didn’t read the last paragraph.
Our local congressman bragged about the courage of his vote and the benefits of the health care legislation– without mentioning anything about its costs. I may have developed a related allergy that briefly impacted my ability to read an entire post.
Thanks for your work on this blog; I enjoy keeping up with things through your efforts.
5 jake // Mar 31, 2010 at 2:52 pm
Ha – just giving you a hard time.
But it IS a good time to discuss costs. Will this impact any local businesses? Will there be net gains or losses of any sort?
I’d love to see how these dollars flowing into KCTCS over the next decade could positively impact jobs and economic growth in the Commonwealth. I’d bet money it’s a better investment than giving the funds directly to four-year institutions.
6 eric schansberg // Mar 31, 2010 at 3:02 pm
The direct shell game is interesting.
There’s also an indirect thing happening here: States had been reducing their subsidies to higher education gradually. With their recent financial straits, in many states, the reductions have accelerated, leading to much higher tuition rates.
If the economy continues to stay soft– and especially if there are additional unfunded mandates imposed by the feds– state (and local) governments will be under increasing pressure to tighten their belts. This will result in less money for elementary/secondary ed and higher ed (i.e., even higher tuition).
In a word, the painful/staggering school closings in New Albany/KC and the painful/staggering increases in college tuition at UL/California universities will be just the beginning.
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