President Obama Signs Reconciliation Act
Today, President Obama signed into law H R 4872, the Health Care and Education Reconciliation Act of 2010, which was passed by Congress on March 25, 2010.
From the White House:
"A Great Battle Pitting the Interests of the Banks and Financial Institutions Against the Interests of Students"
Today at Northern Virginia Community College, President Obama signed the Health Care and Education Reconciliation Act, the last step on health reform that provided fixes for some elements and which improved upon the core health reforms by increasing tax credits for the middle class, investing in community health centers, and strengthening efforts to fight waste and fraud. [...]
For a long time, our student loan system has worked for banks and financial institutions. Today, we’re finally making our student loan system work for students and our families. But we’re also doing something more.
From the moment I was sworn into office, I’ve spoken about the urgent need for us to lay a new foundation for our economy and for our future. And two pillars of that foundation are health care and education, and each has long suffered from problems that we chose to kick down the road.
With the bill I signed last week, we finally undertook meaningful reform of our health care system. With this bill, and other steps we’ve pursued over the last year, we are finally undertaking meaningful reform in our higher education system. So this week, we can rightly say the foundation on which America’s future will be built is stronger than it was one year ago.
President Obama Signs Historic Health Care and Education Legislation
This historic law:Making Higher Education More Affordable
- Invests more than $40 billion in Pell Grants to ensure that all eligible students receive an award and that these awards are increased in future years to help keep pace with the rising cost of college. These investments, coupled with the funding provided in the Recovery Act and the President’s first two budgets, will more than double the total amount of funding available for Pell Grants since President Obama took office.
- Ensures that Americans can afford their student loan payments by expanding the existing income-based student loan repayment program. New borrowers who assume loans after July 1, 2014, will be able to cap their student loan repayments at 10 percent of their discretionary income and, if they keep up with their payments over time, will have the balance forgiven after 20 years.
- Includes $2 billion over four years for community colleges to develop, improve, and provide education and career training programs.
This legislation means $40 billion more dollars in the Pell Grant program to ensure that eligible students receive an award, and that awards increase to keep pace with rising tuition. And a $2 billion investment over four years for community colleges to develop, improve, and provide education and career training programs. Students will be able to choose to limit their student loan payments to 10% of their income, with any remaining balance forgiven after 20 years. And public service workers can have their loans forgiven after 10 years.
Because special interests have been benefiting from taxpayer subsidies for too long, we’re cutting out the middlemen by ending government subsidies currently given to banks and other financial institutions that make guaranteed federal student loans. According to the non-partisan Congressional Budget Office, ending these wasteful subsidies will free up nearly $68 billion for college affordability and deficit reduction over the next 11 years. So these investments are not only paid for, but they’ll reduce the deficit in the long run.
Because of the legislation enacted today, we’re finally undertaking meaningful reform to our education system and making college more affordable and accessible.
For more information on these federal student aid programs, please go to www.studentaid.ed.gov, or call 1-800-4FED-AID.
Remarks by the President and Dr. Jill Biden at Signing of Health Care and Education Reconciliation Act