Students awarded record aid for college, job training

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.

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.

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

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."

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:

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

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

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

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

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.

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

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.