By U.S. Rep. Mike Michaud(D-Maine)
We all know that education is a crucial component to economic development nationwide and here in Maine. We must make access to postsecondary education a top priority if we are going to make our way out of the current recession and position our country for future growth. Congress took an important step forward in updating and improving the benefits of the GI Bill so that more of our veterans can access the college education that they’ve earned through their service to our country. These new benefits went into effect this past month and are already making a difference for thousands of our nation’s service men and women.
The jobs of the future require new skills, and our economy depends on our nation’s ability to educate and train our workforce. Over the past year, the recession has impacted almost every sector, and it has made getting assistance for college more difficult. It has also highlighted the need for many to continue their education so that they can train for the jobs of today and tomorrow.
On September 17, 2009, the House of Representatives passed a bill called the “Student Aid and Fiscal Responsibility Act.” This legislation represents the single largest investment in aid to help students and families pay for college in history.
This legislation makes substantial investments that will directly benefit Maine students. It will help open opportunities to more Mainers by making a college education more affordable. The changes will help Maine students get the training and education they need in order to make a good living and contribute to our economic recovery.
The legislation accomplishes these goals by changing the way the student loan system functions by originating new loans through the government’s Direct Loan program. It will maintain competition among private lenders and non-profits to provide top-notch customer service for student borrowers.
This simple change will make college loans more reliable for students and families. It saves taxpayers $87 billion and then invests the savings back into education and deficit reduction. And it will mean a lot to our state.
For example, over the next ten years, the bill will invest more than $139.3 million in Maine to increase the amount and number of Pell Grant scholarships available to Maine students. In Maine’s Second Congressional District alone, almost 19,000 students will be eligible for a Pell Grant award next school year.
The bill also keeps interest rates low on federal student loans, helping Maine students who took out over 34,000 subsidized loans.
The bill also contains substantial support for our country’s community colleges. It encourages partnerships between community colleges and businesses to address local workforce needs. It also creates grants that will help community colleges modernize, renovate and repair their facilities.
More information on how this bill will affect Maine can be found by visiting my website at www.michaud.house.gov. I am hopeful that the Senate will pass this bill soon so that the President can sign it into law and it can begin to benefit Maine students.
