Obama pushes for more affordable education
Tuesday, March 29, 2005
Printable FormatSOUTHERN ILLINOISAN
by caleb hale
SOUTHERN ILLINOIS - Sen. Barack Obama's first piece of legislation in Washington aims to make college more affordable for students and closes a "loophole" for banks and lenders making education loans.
Obama, D-Chicago, stopped in his hometown Monday for an announcement at the University of Illinois on Higher Education Opportunity through Pell Grant Expansion, or the HOPE Act. The measure seeks to raise the maximum award of federal Pell Grants from $4,050 to $5,100 this year, and beyond in subsequent years, by reducing the rate of return paid to banks and private lenders in interest on education loans.
Obama continues a statewide tour of universities today at Southern Illinois University Edwardsville, the farthest stop south he will make for his HOPE Act announcements.
The HOPE Act is the first bill Obama will introduce in his Senate career, and he said the measure stems from a promise he made during the campaign.
Obama said skyrocketing tuition costs priced about 200,000 students out of college last year. He said he promised to make the situation better for students if elected, and the HOPE Act is designed to start the process.
"Everywhere I go I hear the same story," Obama said. "We work hard, we pay our bills, we put away savings, but we just don't know if it's going to be enough when that tuition bill comes in the mail."
Tuition rates nationally have risen almost 10 percent a year, Obama said. Pell Grants, awarded largely to students and families with incomes below $40,000, have not matched that increase, he added, and now only cover 23 percent of the total costs to attend a four-year public university.
Pell Grants are used by 5.3 million college undergrads. At Southern Illinois University Carbondale, about 80 percent of the student population uses some form of financial assistance, Chancellor Walter Wendler said.
Wendler said Obama's proposal is a good idea for the federal government's part, but it will largely fall to the universities to improve affordability.
"I agree it could be a helpful thing to try to get more federal aid to students," Wendler said. "I would also add we need a multi-prong attack. Quite frankly I think the burden is on our back to find innovative ways to help out students."
"When our children dream about their future, they need to know that those dreams are within their reach," Obama said.
The junior senator intends to pay for his proposed measure by closing loopholes banks and private lenders use to annually collect an additional $2 billion in taxpayer subsidies on top of the interest paid by students and families on loans.
Officials from the Illinois Bankers Association had not seen Obama's proposed legislation Monday and could not offer any comment. They said it is something they would be watching closely.