Programs Attached To Bill Could Help Community Colleges

— NorthWest Arkansas Community College students could see significant gains in financial aid if the U.S. House of Representatives approves a contentious reconciliation bill Sunday.

The bill contains both health care reform legislation and the Student Aid and Fiscal Responsibility Act. If the act passes and is signed into law, it will increase funding for Pell Grants and require colleges to use only federal loan programs for student financial aid. The act also provides $2 billion to community colleges to expand career training, according to the U.S. Department of Labor.

Todd Kitchen, interim dean of learner administration services at the community college, said NWACC students would be most impacted by changes in grant amounts and the loan process.

The legislation requires all public higher-learning institutions to issue student financial aid solely through the federal government. Supporters of the legislation say this would eliminate fees attached to promissory notes and loan origination from private lenders. According to the Association of Community College Trustees, based in Washington, D.C., conversion to direct loans would generate $61 billion in savings.

The act would also apply $36 billion to the Pell Grant program, which many low-income students use to cover the cost of tuition. The act would raise the maximum annual Pell Grant amount to $5,550 in 2010, and to $5,975 by 2017, according to the U.S. Labor Department.

Steven Gates, senior vice president for institutional advancement at the community college, said NWACC experienced a 9.6-percent increase in the number of students using Pell Grants in 2009. Among the 2,366 students attending the college with the help of Pell Grant funds, the average grant amount was $1,738.

“I would attribute this to the increased number of students in situations needing more financial support,” Gates said, noting many have been affected by the recession. “Adults, in particular, who might not have been eligible two years ago because of work and personal situations are eligible now.”

The $2 billion allocated by the act to bolster community college training programs would be divided over four years, providing $500 million a year from 2010 to 2014. According to the Association of Community College Trustees, the money would likely be distributed on a competitive grant process, but $2.5 million per year is guaranteed to each state.

Ed Franklin, executive director of the Arkansas Association of Two-Year Colleges, said his association had partnered with the Winthrop Rockefeller Foundation to help Arkansas community colleges formulate grant applications.

“The good news is, the Obama Administration has placed a lot of emphasis on training and job creation,” Franklin said. “But we can’t do that without some additional funds.”

Gates said any money NWACC received would likely be applied to the health professions.

“They still have high job placement and demand,” Gates said. “We’re still trying to grow these programs as much as we can.”

Third District Rep. John Boozman, R-Rogers, is planning to vote “no” on the reconciliation bill, a Boozman staffer said Friday. Sen. Blanche Lincoln, D-Ark., has repeatedly stated she will not support of the bill if it comes before the Senate. Sen. Mark Pryor issued a statement saying he supports health care reform and would need to read any bill from the House before supporting it.

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