MI Nets $21M In College Grants

The State of Michigan will see another $21 million for low-income college student grants under the Health Care and Education Reconciliation Act of 2010 signed by President Barack Obama last month.  Another $40 billion will flow to Pell Grants, aimed at combating the rising cost of college. By academic year 2020-21, the U.S. Department of Education estimates Michigan students will receive an additional $1 billion in Pell Grants due to changes in the new law.

The College Access Challenge Grant Program will receive another $150 million per year over the next four years and Michigan's share is $21 million. This program provides grants to states to help organizations provide services that increase the number of low-income students who are prepared to enter college and manage their student loans, such as by developing financial literacy and debt management skills.

Just as Gov. Jennifer Granholm has set a goal of doubling the state's college graduates by 2015, Obama set a lofty national goal.

"We will provide the support necessary for you to complete college and meet a new goal: by 2020, America will once again have the highest proportion of college graduates in the world," he said in signing the bill.

As a result of the savings and investments in this new law, Michigan students are expected to receive more than $1.1 billion by academic year 2020-21 in additional benefits for higher education. The Health Care and Education Reconciliation Act includes $2 billion over four years for community colleges. Each state will receive at least 0.5 percent of the total funds appropriated to this program each fiscal year.

The White House said that education-related provisions of the Health Care and Education Reconciliation Act are fully paid for by ending the government subsidies currently given to financial institutions that make guaranteed federal student loans.

Source: MIRS Captiol Capsule, 3.31.10