President Obama Signs New Education Reform Act

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On March 30, 2010 at the Alexandria campus of Northern Virginia Community College, President Obama signed into effect the Health Care and Education Reconciliation Act of 2010. This act was “two major victories that will improve the lives of our people for generations to come,” said President Obama.

This education act will save taxpayers almost $70 billion by removing banks’ abilities to act as middlemen in the student loan process. Instead, this money will be moved into the Pell Grant program to help fund community colleges and colleges that have been historically black colleges.

Starting in 2014, this act will also decrease the amount of money that students are required to repay at 10 percent of their discretionary income.

Hopefully, this will make it easier for students to pay for college, because they will not be paying “billions of dollars to banks to act as unnecessary middlemen in administering student loans.”

Instead, “we’re redirecting money that was poorly spent to make sure that we’re making investments in our future,” said the President.

President Obama hopes this will help meet his long-term educational goal of making American graduates more competitive in the global market by 2020. Vice President Joe Biden agrees.

“I am pleased to say that the reforms in this bill will make a huge difference to those Americans who need it most,” Biden said.

Via the Washington Post

Also Read:

New Student Loan Reform Will Improve Student Funding

President Obama passed the historical Health Care and Education Affordability Reconciliation Act. Not only does this bill seriously alter access to health care, but it also significantly improves the way students can fund their post-secondary education.

Minority and Community Colleges Helped by Education Reform Act

A big part of this act will be to increase funding to America’s Historically Black Colleges and Minority-Serving Institutions. Almost 60 percent of the nation’s 4.7 million minority students attend these schools; however, these schools have not received any addition funding to help offset expenses.

Salllie Mae Discouraged Over New Education Reform Act

Sallie Mae, the nation’s largest student loan lender, believes the new act will lead to company job cuts. Sallie Mae is estimating that one-third of its 8,500 positions will be lost. And Tennessee Republican senator Lamar Alexandar is echoing those concerns. He projects the act will result in over 30,000 job losses nationwide.

5 Responses to “President Obama Signs New Education Reform Act”

  1. Suellen says:

    The key to enhancing our nations college graduate numbers is by targeting young school children. By reaching out to communities and educating children and their families about a child options for the future encourages students to attend college. Many families are concerned with the rising costs of a college education, however there are various types of grants, loans, scholarships and financial aid available for anyone to attend college.


    Editor, – A Directory of Colleges in West Virginia

  2. someone says:

    Love your site I’m going to bookmark

  3. Alyx Brittany says:

    What a funny story. I just adore the site! Keep up the great work 🙂

  4. Kels says:

    It makes me soooo happy to hear that this is really helping you!

  5. Maylean Brock says:

    This new education law will enable me to complete a degree that I have been prusuing for the last year in a half. Now I will not have to worry about how I will pay for my education. I have been out of work for a year in a half and I presently hold a work study position at the university that I attend. It helps me with transportation to and from the university. I live with my mom because I can not afford to an apartment and I don’t want to live on campus. Kudos to President Obama for doing good for the American people and to the future generation of the United States. I like to add that I an a traditional student and that says something, like I am serious about improving my life for the better and a good education will do it. When I am finished, I hope to become an educator myself, so that I may teach out future generation the importance of an education and that with presistance they can achieve a good education and maybe be an educator themselves for their generation and generations to come.

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