By: Rachel Nelson
www.universitystar.com
Higher education will reap some benefits from the $787 billion stimulus bill that was signed into law Tuesday, but the gains will not be what some hoped for when the plan surfaced.
Allocated funds for higher education construction and the federal work-study program were reduced by U.S. Senators while making cuts to the package.
President Barack Obama addressed the nation in early January before sworn into office, communicating his optimism about the proposal to build educational facilities.
“To give our children the chance to live out their dreams in a world that’s never been more competitive, we will equip tens of thousands of schools, community colleges and public universities with 21st-century classrooms, labs and libraries,” Obama said during his economic recovery speech Jan. 8. “We’ll provide new computers, new technology and new training for teachers so students in Chicago and Boston can compete with children in Beijing for the high-tech, high-wage jobs of the future.”
According to information provided by the Texas State Financial Aid Office, there was a 1.1 percent increase for allocated federal work-study funds during fiscal years 2008 and 2009. However, the number of work-study positions was reduced as a result of the increase in minimum wage that occurred in July 2008.
The number of students receiving Pell Grants will see an increase, and the maximum amount of the grants are greater than previous years.
The original House package sought to increase the grant amount by $500 and the number of recipients by 800,000 in the next year.
The maximum amount in the revised Senate version of the bill for a Pell Grant is up $281 during the 2009-2010 award year, but will jump to $400 in 2010-2011. The number of recipients will increase in 2009-2010 by 175,000 and 250,000 in 2010-2011, respectively.
Sidencio Leija, College Democrats member, said he was disappointed in the decision to cut educational facility funds because of the jobs they would have created for Americans.
“I think by them increasing (Pell Grants) by this amount, it will hopefully reduce the amount of students going into debt over the four or five years in college,” Leija said. Leija is a veteran of the U.S. Navy and said grants and the G.I. Bill have made it possible for him to focus on his studies rather than having to work while in school.
The Financial Aid Office said 6,611 Pell Grants were awarded at Texas State, according to data from 2007-2008. The office encourages students to reapply for grants each year because they may be eligible for subsidized need-based loans, such as a Federal Direct Loan, if they do not qualify for Pell Grants.
A higher tax credit is designed to provide relief for college students and their parents.
The legislation states 100 percent of tuition and related expenses paid by citizens during the taxable year will be credited provided the amount does not exceed $2,000. Twenty-five percent will be credited for costs between $2,000 and $4,000.
Leija said he thinks it is a great time to be a student during this economic turmoil, especially for freshmen and sophomores because they will not have to struggle to find jobs until after they graduate.
“They hopefully will be there at the point when things are going up,” Leija said. “If you’re a junior and senior, looking for a job is going to be tough.”
Graduate school is something Leija said he is looking into to avoid the dwindling job market for two more years.
“We don’t know what’s going to happen,” Leija said. “We won’t see any results until the beginning months of next year if we get lucky.”
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