President Barack Obama is proposing $3.8 trillion for the 2011 fiscal year in a national budget that includes a 6 percent increase in education spending.
The proposed budget also adds more funding for Pell Grants and scientific research. The maximum Pell Grant award would be increased from $5,550 to $5,710, and the National Science Foundation would receive an 8 percent increase in funding.
The budget would also put the United States $1.6 trillion in debt, creating the largest federal deficit in U.S. history.
Supporters of the budget, however, note the increases in education funding.
The president has proposed an optimistic budget with large increases for higher education, said Carolyn Henrich, legislative director for education for the University of California Office of the President.
The budget helps to stabilize the Pell Grants system, a program that had been facing an unsteady status in funding as more students become qualified for it, she said. While some education programs are being consolidated with larger programs, overall funding for education increases remain high, she added.
She said one of the budget’s measures would increase the government’s role in student loans.
Before the government provided student loans, banks were hesitant to lend to students, so the government would pay banks an allowance to persuade them to do it, she said.
These types of privatized loans include Stafford and PLUS loans.
But now that banks no longer face the same issues over repayment from students, the federal government can eliminate banks as the middleman and loan directly to students, she said.
She said the budget would also expand income-based repayment programs, which allow low-income college graduates to make smaller monthly repayments. The cap for repayment is currently set at no more than 15 percent of the student income, but the budget would lower the cap to 10 percent, she said.
Some students find the proposed budget supportive of higher education.
“Honestly, a 6 percent increase in education is a good sign … but we have to realize that most of that increase will likely go to K-12 programs, not students around here … which is good and prepares the country for the future, starting at the bottom,” said Kevin Poirier, a second-year political science student.
Poirier added that he would like to see Obama eliminate the private college loan system and implement a Direct Federal Loan program to free up an extra $25 billion in student loans.
Brian Le, a fourth-year biochemistry student, also said he is excited about parts of the budget, like more funding for Pell Grants.
“I’m hopeful that the budget would in the long term help out students in paying for college, as well as in promoting scientific progress,” he said. “But at the same time, I’m a bit wary on the large amount of money being spent.”