Obama's 2010 Budget Proposal Calls for Direct Federal Funding of Student Loans.
In his 2010 budget proposal, Pres. Barack Obama said he plans to end government-guarenteed loans and to implement more direct government loans. Obama also said he wants to tie the Pell Grant to inflation.
According to his budget proposal, Obama hopes to make it where federal student loans come straight from the government rather than using a program that pays government subsidies to private student loan. The Obama administration said it is doing this to save taxpayers money. This proposal may hurt private student loan organization. The budget also outlined plans to tie the Pell Grant to inflation in order to combat tuition and fees.
Currently, students at the University of Oklahoma have access to multiple student loans, and some students may even apply for Pell Grants. With the announcement of fee increases Jan. 28 by University of Oklahoma Pres. David Boren, the proposal may come as good news for students eligible for Pell Grants. Students with an Expected Family Contribution lower than 3850 are eligible to receive a Pell Grant in the state of Oklahoma. Obama also stated on his Web site that he hopes to make the
"A good education is no longer just a pathway to opportunity. It is a prerequisite," Obama said in his speech to Congress. "We will provide the support necessary for all young Americans to complete college."
If passed, the budget proposal will go into effect Oct. 1. Obama said he hopes his plan of cutting out loans from private industries will save the nation billions of dollars in the next year.