This is historical material, "frozen in time." The web site is no longer updated and links to external web sites and some internal pages will not work.
THE WHITE HOUSE AT WORK
Friday, January 9, 1998
COLLEGE OPPORTUNITY FOR EVERYONE:
PREPARING AMERICANS FOR THE 21st CENTURY
Thanks to brand-new HOPE scholarships and other initiatives, money will
no longer be an obstacle to a college education. For the first time in
the nation's history, the only prerequisites to college are preparation
and desire. We have delivered on our promise to make 13th and 14th
grades as accessible as high school is today. Now you need to seize this
opportunity to help us build the promise of America.
January 9, 1998
Today, the President reaffirmed his commitment to further expand
educational opportunity for all Americans and he fulfilled another of his
educational opportunity commitments by announcing that his balanced
budget proposal will include a $70 million increase in funding for the
Federal Work-Study Program.
The largest investment in higher education in 50 years.President
Clinton continues to identify fiscally responsible policies that help
strengthen education and expand college opportunity. To expand college
opportunity the President is:
Expanding Work Study Opportunities.The Federal-Work Study
Program offers undergraduate and graduate students part-time work to help
meet their financial needs and to give them work experience helping the
campus and surrounding communities. The funding in the President's
budget proposal will bring the total number of projected work-study
participants to just over one million in the 1999-2000 school year -- a
full year earlier than promised.
Promoting the Hope Scholarship Credit.is helps make the first
two years of college (or post-high school vocational training)
universally available. Families are eligible for tax credits of up to
$1500 per-student for tuition in a student's first year and another $1500
in the second year. 5.8 million students are estimated to benefit annually
Proposing Education IRAs. each child under age 18, families
may now deposit $500 per year into an Education IRA in the child's name.
Interest on these accounts is exempt from taxation if used for higher
education. Taxpayers can withdraw funds from a regular IRA, without
penalty, for their own higher education expenses or their spouse, child,
Initiating a Life Time Learning Credit. This tax credit helps
offset tuition costs for college juniors, seniors, graduate and
professional degree students, and adults who go back to school, change
careers, or take courses to upgrade their skills. Families receive a 20%
tax credit for the first $5,000 of tuition and required fees paid each
year through 2002, and for the first $10,000 thereafter. 7.1 million
students are expected to benefit annually.
Increasing Investment for Pell Grants. For two years,
President Clinton has proposed, and Congress has adopted, record
increases in the maximum Pell Grant award. Next year, nearly 4 million
low-and moderate-income students will receive a Pell Grant of up to
$3,000, 30% more than when President Clinton came into office.
Improving Access and Opportunity for Student Loans. More
than 5 million students and parents will take out $30 billion in
Federally-backed student loans this year. Under student loan reforms
enacted in the Administration's first year, the up-front fees on those
loans have been cut by as much as half, interest costs are lower, and
students have more repayment options than ever before, including the
pay-as-you-earn (income contingent) repayment plan. The program
simplification pioneered by the Direct Loan Program has also spurred
improvements to the government-guarantee system, improving all students'
access to loans.
Instituting AmeriCorps -- a Responsible Way to Pay for College by
Doing Community Service. This year, nearly 50,000 young people will
take advantage of the opportunity to perform community service, either on
a full-time or part-time basis, allowing them to earn an award to pay for
college or repay student loans. Participants in the AmeriCorps program
earn education awards of up to $4,725 for each year of service.