Students awarded record aid for college, job training

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Record numbers of American students received federal aid to attend college or pursue career training during the fiscal year that ended this month, according to a U.S. Department of Education news release.|ret||ret||tab|

In fiscal year 2001, more than 8 million students received more than $47.2 billion in federal grants, loans and campus-based programs. Nearly 4 million students received $9 billion in federal Pell Grants, which serve the neediest students. |ret||ret||tab|

President Bush has proposed increasing Pell Grant funding by $1 billion as part of his fiscal year 2002 budget. |ret||ret||tab|

Secretary of Education Rod Paige said, "The Bush Administration is committed to helping families finance post-secondary education by making grants and low-cost loans widely available, and more aid is available now than ever before. President Bush and I will continue working to give more students access to a quality education at all levels, and we will work particularly hard to improve opportunities for minorities, students from low-income families, and other students underrepresented on college campuses."|ret||ret||tab|

Paige added that a number of benefits in the tax reform package, signed into law by President Bush earlier this year, will help families finance a college education or job training courses. They include: |ret||ret||tab|

Interest deductions for student loan payments until loans are repaid entirely, instead of the first 60 months; |ret||ret||tab|

The expansion of state tax-free savings plans and an increase in the amount that can be invested in tax-free Education Savings Accounts to $2,000 per year; and |ret||ret||tab|

Income tax payment rebates to families that can be used to pay for books and tuition.|ret||ret||tab|

Paige noted, however, that rising costs of college tuition and expenses forced many students to borrow increasing amounts to pay for college. |ret||ret||tab|

In fiscal year 2001, approximately 5.31 million students borrowed $34.8 billion in federal student loans, more than triple the $11.7 billion borrowed in fiscal year 1990. |ret||ret||tab|

Paige said that nearly 2 million disadvantaged students received help under the TRIO and GEAR UP programs in fiscal year 2001. |ret||ret||tab|

The department awarded over $1 billion for outreach and support services that help students from low-income families and other groups underrepresented on college campuses prepare for and complete a college education.[[In-content Ad]]