The House is poised to vote to push private lenders out of the federal college loan business and massively expand the government's own lending program.
Following a day of debate, House lawmakers were expected to approve on Thursday a student aid bill that has widespread support, including from the White House. The measure will then go to the Senate, where its fate is somewhat less certain.
Putting the government in charge of all federal loans would save taxpayers an estimated $87 billion, according to the Congressional Budget Office. The CBO says the figure could be much lower, $47 billion, when administrative costs and market conditions are considered. More at MSNBC.
Obama speaks on education at 1:15 p.m. today. It's likely to be live streamed at cnn.com or msnbc.com. This is probably what he'll be speaking about:
On Friday, Obama will officially announce the "Race to the Top," a competition for $4.35 billion in grants. He wants states to use funds to ease limits on charter schools, tie teacher pay to student achievement and move for the first time toward common academic standards. It is part of a broader effort to improve school achievement with a $100 billion increase in education funding, more money for community colleges and an increase in Pell Grants for college students.
Duncan has used the Race to the Top fund, created through the economic stimulus law, as leverage to drive the president's education agenda in Rhode Island, Tennessee, Colorado and elsewhere. Never has an education secretary been given so much money by Congress with such open-ended authority, according to current and former federal education officials. Margaret Spellings, Duncan's predecessor under George W. Bush, had a tiny fraction of that amount at her disposal.
Obama says stagnating student achievement is part of a "slow-rolling crisis" and represents a threat to the country's economic future. Stark achievement gaps remain for minority and low-income students. In some big cities, fewer than half of high school students graduate on time. The United States trails international competitors in math and science.
Here's a treat. Without using inflammatory words or sounding like a rabid Sarah Palin fan, Newt has something good to say about Obama's education reform plans AND the education secretary Arne Duncan. He also manages to criticize Obama in a civil manner. Hmmmmm. My guess is Newt wants in on this education reform. He also might've felt freer, figuring none of the republican base would be watching C-SPAN.
Obama's aim: to make college affordable. Millions of families are eligible for an annual $2,500 tax credit to help pay for college, he said. The Obama administration intends to reform Pell grants. The administration is raising the max to $5,550 next year, he said. The value of a Pell grant is going to be pegged to a fixed rate above inflation so these grants don't cover less as costs go up. Colleges and universities need to control their costs to make education more affordable. The administration is revising the Perkins system so that it rewards colleges that have affordable tuitions. Obama has called for ending the Federal Family Education Loans.
