Republicans Boost Student Aid, Help Millions of Americans Go to College

UPDATED: October 7, 2004

This fall, an estimated 15.9 million students returned to college or entered as freshmen in the nation’s colleges and universities.  To expand college access and assist the millions of American students striving for higher education, Congressional Republicans and President Bush have dramatically increased federal student aid in recent years.  The number of students receiving Pell Grants has increased by more than one million in just three years under President Bush, and the Pell Grant maximum award is at its highest level in history.  At a time when more students than ever are choosing to go to college, millions of adults are interested in going back to school, and changing technology requires workers to train and retrain to compete in a changing marketplace, Republicans are leading efforts to expand college access with the help of federal student financial assistance.

PELL GRANTS

• Pell Grants are the cornerstone of need-based federal financial assistance.  These grants, which do not have to be repaid, are given to needy students and families who might not otherwise have the opportunity to pursue a college education.

• Pell Grants have received substantial support in recent years – in fact, in the past nine years the Republican-controlled Congress has increased overall funding for Pell Grants by 95 percent to $12 billion this year (FY 2004), and the House has passed a spending measure to add more than $800 million in FY 2005.  The maximum award has increased from $2,340 to $4,050 – an increase of 73 percent.

• More students than ever are receiving Pell Grants – in fact, more than 5 million students are benefiting from Pell Grants this year alone.  And the maximum grant, $4,050, is the highest it has ever been in the Pell Grant program’s history.  Roughly a million more students are receiving Pell Grants now than were receiving them when President Bush took office.

• Pell Grant Quick Facts

• Overall Funding:  Since Republicans took control of the House, overall Pell Grant funding has increased by 95 percent – from $6.1 billion in FY 1995 to $12 billion in FY 2004.  In just three years under President Bush, overall Pell Grant funding has increased by 37 percent – from $8.8 billion in FY 2001 (the final budget year under President Clinton) to $12 billion this year.  And for FY 2005, the President has requested (and the House has approved) another $800 million.

• Maximum Award:  Since Republicans took control of the House, the Pell Grant maximum award has increased from $2,340 to $4,050 – an increase of 73 percent since FY 1995.

• Number of Students:  Since Republicans took control of the House, the number of students participating in the Pell Grant program has increased dramatically.  Since FY 1995, the number of students receiving Pell Grants has increased from 3.6 million to an estimated 5.3 million students this year.  In just three years under President Bush, the number of students receiving Pell Grants has increased by more than one million.  More students than ever before are attending college with the help of Pell Grants.

STUDENT LOANS

• The federal student loan program is the single largest source of student financial aid.  In fact, according to recent data from the College Board, students received more than $105 billion in financial aid for undergraduate and graduate study in 2002-03, with more than $70 billion coming from the federal government.  Of that, nearly $48 billion was available through federally-guaranteed student loans.

• Republicans have offered a number of proposals to strengthen the federal loan programs, and make higher education more affordable through student loans.  These reforms include a reduction in origination fees and an increase in loan limits for first and second year students that would not increase the aggregate debt limits.  Republicans would also maintain the current variable interest rate structure that has resulted in the lowest interest rates in the history of the federal student loan programs.  The Republican reforms would also strengthen consumer protections by repealing the anti-competitive “single holder” rule for consolidation loans, and requiring that more consumer protection information be provided to borrowers regarding consolidation loans.

• Student Loan Quick Facts

• Overall Funding:  Millions of students finance higher education with the help of federal student loans.  According to the U.S. Department of Education, for FY 2004 more than $52 billion is available to students and parents through the traditional, Federal Family Education Loan (FFEL) program and the government-run Direct Loan (DL) program.  Since FY 1995, student loans have increased from $23 billion to $52 billion, an increase of 123 percent.

• Number of Students and Parents:  The number of students and families borrowing for college has increased dramatically in recent years, and Republicans have kept pace with the increased demand for higher education.  Under a Republican-led Congress, the number of students pursuing a college education with the help of federal student loans has increased from 3.9 million to 6.6 million, an increase of 69 percent.  The number of parents borrowing to help students attend college has increased as well.  The number of parent loans increased from 297,000 in FY 1995 to 659,000 in FY 2004 – an increase of 122 percent.

• Historically Low Interest Rates:  Students today are paying the lowest interest rates in the history of the federal student loan program, thanks to the successful interest rate structure put in place by Congressional Republicans.  Here’s how interest rates have fallen in recent years.

• In 2000 – 2001, the interest rate for students in school and in their grace period was 7.59 percent.  For borrowers in repayment, the interest rate was 8.19 percent.

• In 2001 – 2002, the interest rate for students in school and in their grace period was 5.39 percent.  For borrowers in repayment, the interest rate was 5.99 percent.

• In 2002 – 2003, the interest rate for students in school and in their grace period was 3.46 percent.  For borrowers in repayment, the interest rate was 4.06 percent.

• In 2003 – 2004, the interest rate for students in school and in their grace period was 2.82 percent.  For borrowers in repayment, the interest rate was 3.42 percent.

• In 2004 – 2005, the interest rate for students in school and in their grace period will be 2.77 percent.  For borrowers in repayment, the interest rate will be 3.37 percent.

COLLEGE ACCESS PROGRAMS – TRIO

• The federal TRIO programs fund educational outreach and student support services designed to encourage individuals from disadvantaged backgrounds to successfully pursue postsecondary degrees.  Over the last few years, significant investments have been made to respond to program evaluations by targeting higher-risk students and providing work-study opportunities in Upward Bound, and by providing more intense services and grant aid in Student Support Services.  Funds also have been used to increase the number and size of grants in the other TRIO programs.  President Bush’s FY 2005 funding request for TRIO will serve 881,000 disadvantaged students.

• TRIO Quick Facts

• Overall Funding:  Funding for the federal TRIO college access programs has increased dramatically under a Republican-led Congress.  TRIO funding has grown from $463 million in FY 1995 to $833 million in FY 2004, an increase of roughly 80 percent.  In just three years under President Bush, funding for the TRIO programs increased by more than $100 million – an increase of 14 percent.

• Number of Students Served:  The number of students served by the TRIO college access programs has increased under Republican leadership.  Since FY 1995, the number of students served by the TRIO programs has grown from 671,000 to a projected 881,000 students that would be served under President Bush’s FY 2005 funding request.  This is an increase of 31 percent.  In four years under President Bush, the number of students served by the TRIO programs will have increased by 133,000.

AID FOR MINORITY SERVING INSTITUTIONS  

• America ’s minority serving institutions – including Historically Black Colleges & Universities (HBCUs) and Hispanic Serving Institutions (HSIs) – provide an important doorway to higher education for hundreds of thousands of students.  House Republicans have introduced legislation to strengthen minority serving institutions and help to break down barriers that currently prevent some students from pursuing their educational goals.  In addition, bills have been offered to assist minority serving institutions as they participate in graduate programs under the Higher Education Act, as well as international and foreign language studies programs.  These bills complement the massive funding increases such institutions are receiving under GOP leadership.

• Republicans have dramatically increased funding for America ’s minority serving institutions (MSIs).  Some quick funding facts:

• Funding for HSIs has increased by more than 37 percent since President Bush took office, from $68.5 million in FY 2001 (the final Clinton budget) to $94 million in FY 2004.  And the President has requested another increase for FY 2005 that would bring funding to nearly $96 million.

• Funding for HSIs has increased by more than 770 percent since Republicans took control of the House – from $10.8 million in 1996 to $94 million in 2004.

• Since Republicans took control of the House in 1995, funding for HBCUs has increased by 105 percent, and funding for Historically Black Graduate Institutions (HBGIs) has increased by 171 percent.  For FY 2004, HBCUs received $223 million and the HBGI program received $53.1 million.

• For FY 2005, President Bush has requested a $17.7 million increase for HBCUs, which would bring funding to $240.5 million and represent a 30 percent increase in funding since the President took office.