FY 2010 Budget, Department of Education
Friday, February 27, 2009
Thanks to Stacey for alerting us to the release of the White House's FY 2010 Budget blueprints! Check out the Department of Education document here (note: links directly to PDF) (click here to visit the White House budget page and check out impacts on other departments).
The budget would include funds for a variety of educational projects ranging from expanding access to high-quality early childhood education to preparing and rewarding effective teachers and principals. As Stacey points out, it also would also make some pretty major changes to financial aid for higher education. It would expand the Pell Grant program, put the program on sure footing (in other words, they wouldn't be subject to the Appropriations process anymore!), and tie the maximum grant award to inflation.
In addition, the budget would eliminate the Federal Family Education Loan Program (a US DOE program that provides for private organizations to market, originate, and service federally guaranteed student loans, such as Stafford and PLUS loans) by 2010. All new loans would originate from the Federal Direct Loan Program (in which the government acts as a direct lender). Not all stakeholders will be pleased with this development, though, as evidenced in this New York Times article published February 25...
Update: Here is a newer (February 26) NYT article on the changes to the student loan system.
Labels: budget, DOE, student loans
