According to Georgia Public Broadcasting News, President Obama plans to cut $100 billion from Pell Grants and other college education programs over a decade.
An administration official stated that the president’s plan for the 2012 budget would use the projected savings to keep financial aid for college students at a maximum of $5,550. The estimated $90 billion in savings because of the cuts would be achieved through two changes that Obama will make effective if Congress approves his budget.
The first change would be that the Pell Grant would no longer give students two grant awards per calendar year, but instead students will receive one award per year. The second change would be that the federal government would reduce loan subsidies for graduate and professional students. Both changes would save a combined $10 billion next year alone, and would continue to save the federal government money over the next ten years.
The Obama administration is currently facing trillions of dollars of national debt and rising budget deficits every year. The president recently proposed a $3.73 trillion budget, and he is defending his decisions while acknowledging that the cuts will impact Americans.
While speaking to the Associated Press at a news conference on Feb. 15, the president defended his budget while admitting that the nation will struggle to fix what needs to be fixed. He acknowledged that it will be difficult for Democrats and Republicans to find common ground regarding what they need to do in order to stabilize the economy.
“This is not a matter of, ‘you go first, I go first,'” Obama said. “It’s a matter of everybody having a serious conversation about where we want to go and then ultimately getting in that boat at the same time so it doesn’t tip over.”