Cutting out this "unwarranted subsidy," as Obama put it in a speech Monday, would free up almost $90 billion over 10 years. The House would use the largest chunk of that money to raise Pell Grant amounts for low-income college students; the grant amounts have lagged far behind increases in tuition costs.

The money is also directed in other, innovative ways. About $10 billion would go to community colleges -- the biggest infusion of federal cash ever to these institutions.

Colleges would get $2.5 billion to figure out how to keep track of how many students manage to graduate, as opposed to piling up debt and then dropping out. In the House, private colleges were able to wiggle out of this requirement; the Senate ought to hold them to it.

Another $8 billion would go to early childhood education programs, which vary widely in quality, with the goal of establishing some standards and accountability for preschool programs.

Meanwhile, the administration has seized on education funding in the stimulus bill to push its reform agenda. The stimulus included $4.35 billion for competitive grants to states to improve elementary and secondary education -- the largest-ever amount of discretionary federal funding for school reform. The administration's proposed regulations on these Race to the Top funds require that any state wishing to compete for the money must lift restrictions on the number of charter schools and get rid of laws or rules that prohibit linking teacher pay to student performance.

Seven states -- Tennessee, Rhode Island, Indiana, Connecticut, Massachusetts, Colorado and Illinois -- have revoked their limits on charter schools. The California legislature set aside a 2006 law that prohibited using student performance data to evaluate teachers.

Finally, the appropriations bills moving through Congress would further the reform push. Most important, they would dramatically boost funding -- from $97 million in 2009 to as much as $446 million in 2010 -- to offer higher pay to teachers and principals who improve performance in high-poverty schools.

Federal agencies that supply food for 31 million schoolchildren fail to ensure that tainted products are pulled quickly from cafeterias, a federal audit obtained by USA TODAY finds.

The delays raise the risk of children being sickened by contaminated food, according to the audit by Congress' Government Accountability Office.

In recent recalls, including one this year in which salmonella-infected peanut butter sickened almost 700 people, the government failed to disseminate "timely and complete notification about suspect food products provided to schools through the federal commodities program," the audit says.

Such alerts sometimes took more than a week to reach schools, "during which time (schools) unknowingly served affected products."

This afternoon, the House passed the Student Aid and Fiscal Responsibility Act (HR 3221) by a vote of 253-171. The bill ensures that higher education is more affordable at no additional expense to taxpayers – in fact, it saves money. More students will go to college, they will graduate with less debt, and the federal loan initiatives that they and their families depend upon will be strengthened for decades to come. The legislation will generate almost $100 billion in savings over the next 10 years that will be used to increase Pell Grant scholarships, keep interest rates on federal loans affordable, and safeguard federal student loan access for families.

Speaker Pelosi:

Education and Labor Committee Chairman George Miller (D-CA):

Chairman Miller: “My colleague on the other side of the aisle said that this legislation is the wrong way and the wrong place to make this investment. He’s got it exactly backwards. This is the exact way to make this investment. To take the savings by cutting the subsidies to the lenders and recycling those on behalf of families and students and our community institutions so that we can expand the educational opportunities in this country. we cannot continue just to wring our hands about our competitive place in the world..we must do something about it.”

Rep. Ruben Hinojosa (D-TX):

Hinojosa: “The legislation will increase affordability, accessibility and college completion rates particularly for first generation college low-income, minority and middle-class students. It invests $40 billion to increase the maximum annual Pell Grant scholarships to $5,550 by 2010 and 2019, $6,900 and provides low and middle income families with affordable, direct federal student loans and simplifies the application process for financial aid.”

Rep. Rob Andrews (D-NJ):

Andrews: “The issues before the House tonight are these. Do you agree or disagree that the time has come to make college more affordable for men and women around this country by making Pell Grant scholarships more available, student loans less expensive and more available? I think most people would say, yes, we do agree with that.”

Rep. Judy Chu (D-CA) on the investments the Student Aid and Fiscal Responsibility Act makes to community colleges:

Chu: “As a Professor for over 20 years, I know firsthand how important community colleges are to helping hard working Americans achieve their dreams. About one out of every two college students attends a community college and they are some of the hardest workers I have ever met. My students came from all walks of life - they were immigrants, single moms and laid-off workers and many of the students were the first in their families to go to college. Community colleges are the backbone of our nation’s workforce.”

Chairman Miller responds to criticism of the bill and Rep. Tim Bishop (D-NY) explains how this legislation reforms student loan practices for the benefit of both the taxpayer and the borrower:

Bishop: “What we are doing is we are paying private lenders a subsidy so that they will have the privilege of lending federally originated money to their borrowers. We guarantee repayment of that money to the tune of 97% of the amount outstanding and the private lenders reap whatever interest payments are paid by the borrowers. This is a really, really good deal for private lenders. It is a deal that costs the American taxpayer approximately $8 billion to $9 billion a year that we don’t need to spend in that fashion. We can provide, We, the federal government, can provide the loan capital that students need.”

• Invests the bill’s savings in making college affordable and helping more Americans graduate
• Provides reliable, affordable, high-quality Federal student loans for all families
• Prepares students and workers for 21st century jobs by providing all Americans with the skills and resources they need to compete
• Promotes early learning standards reform to ensure the next generation of children enter kindergarten with the skills they need to succeed in school
  
• Meets Pay-As-You-Go fiscally responsible principles and reduces the deficit  

Let us stop here and recall how the current loan system works:

1) Federal government provides private banks with capital.

2) Federal government pays private banks a subsidy to lend that capital to students.

3) Federal government guarantees said loans so the banks don’t have any risk.

And now, the proposed reform:

1) The federal government makes the loans.

....

If it all works out, Congress will have come a way toward fixing this problem, at least when it comes to federally financed student loans. There’s already a new law that forgives part or all of the debt for graduates who go into careers in public service. Terms will be easier for low-income debtors.

Congress has a chance, starting this week, to end the boondoggle that allows private lenders to earn a handsome subsidy for making risk-free student loans that are guaranteed by the federal government. It’s a wonderful deal for the lenders — and an emphatically bad one for the taxpayers.

The House is expected to vote on Thursday on a bill that would simplify the loan system — and save the country nearly $90 billion over the next decade — by ending the subsidy program and allowing students to borrow directly from the government through their colleges and universities. To get this done, however, lawmakers will need to see through the spin and misrepresentations that have become all too common lately.

...

Lawmakers need to put aside all the noise and pass this bill.

EXCEPT FOR a lucky few, paying for college isn't easy. Judging from how long it has taken, neither is reforming how the government provides the loans that make higher education affordable to millions. Yet Wednesday, as the House considers a bill that promises to save taxpayers billions of dollars, it's clear that the right choice is to vote yes.

Historically, the government has kept student-loan interest rates low through two programs: one in which the feds do the lending directly; and one in which the government subsidizes private entities that offer students loans at low, set interest rates. For more than a decade, private lenders fought back attempts to end the expensive subsidy system that kept them profitable at taxpayer expense. Then came the financial crisis, during which the public-private system fell apart, and the election of President Obama, who is intent on getting rid of the private middlemen.

According to the Congressional Budget Office (CBO), if the government directly financed all federally sponsored student loans, it would save $80 billion over 10 years. House Democrats have advanced a version of the president's plan that will probably get a vote in the House Thursday; the measure would put those savings into a range of worthy programs, from aid for community colleges to school renovation to larger Pell grants.

Pay heed to local hard-headed law enforcement professionals who deal with the worst that society has to offer on a daily basis.

Speaking out in support of increased funding for early childhood education this week were Lincoln Police Chief Tom Casady, Lancaster County Attorney Gary Lacey and his chief deputy Joe Kelly.

"It's a concept that makes complete sense to all of us in this line of work," Kelly said. "The mission is validated by research."

Studies show a return of as much as $13 for every dollar invested in care and learning systems for disadvantaged children, according to Jen Hernandez of the Nebraska Children and Families Foundation.

The return comes in the form of savings in the cost of operating the criminal justice system, welfare, schools and other public systems. Research shows that participants in early childhood programs are as much as 29 percent more likely to graduate from high school and 40 percent less likely to repeat grades or be placed in special education.

• Build an effective, qualified, and well-compensated early childhood workforce by supporting more effective providers with degrees in early education and better compensation, and providing sustained, intensive, classroom-focused professional development to improve the knowledge and skills of early childhood providers
• Best practices in the classroom by implementing research-based early learning and development standards aligned with academic content standards for grades K-3.
• Promote parent and family involvement by developing outreach strategies to parents that will help them support their children’s development.
• Fund quality initiatives that improve instructional practices, programmatic practices, and classroom environments that promote school readiness.
• Quality standards reform that moves toward pre-service training requirements for early learning providers, and adoption of developmentally appropriate standards for teacher-child ratios and group size.

"As far as being a bellwether and a potential hot spot for epidemics, schools are probably No. 1 on the list," said Bill Mays, community health director with the Lake County Health Department.

How schools handle the virus is shaped by health experts. Last spring, when the first cases were diagnosed in the U.S., the federal government urged schools to shut down for up to 14 days if they had a confirmed case. More than 700 schools in the nation closed, including nearly three dozen in the Chicago area.

But schools this year likely will be slower to call off classes, based on new information. The CDC now says schools should be conservative about closing entirely. The agency instead urges parents to check their children each morning for flulike symptoms and keep them home from school if they have a fever.

What's more, the CDC has changed its recommendation about when students can return to class after a bout of swine flu. Previously, it said that students with confirmed cases should stay home for up to seven days. Now it's saying that students can return to class 24 hours after the fever ends.

"We can't stop the tide of flu, but we can reduce the number of people who become very ill by preparing well and acting effectively," said Dr. Thomas Frieden, director of the CDC.

• Stay home when sick: Those with flu-like illness should stay home for at least 24 hours after they no longer have a fever, or signs of a fever, without the use of fever-reducing medicines. They should stay home even if they are using antiviral drugs. (Visit for more information)


• Hand hygiene and respiratory etiquette: The new recommendations emphasize the importance of the basic foundations of influenza prevention: stay home when sick, wash hands frequently with soap and water when possible, and cover noses and mouths with a tissue when coughing or sneezing (or a shirt sleeve or elbow if no tissue is available).

• Invests the bill’s savings in making college affordable and helping more Americans graduate
• Provides reliable, affordable, high-quality Federal student loans for all families
• Prepares students and workers for 21st century jobs by providing all Americans with the skills and resources they need to compete
• Promotes early learning standards reform to ensure the next generation of children enter kindergarten with the skills they need to succeed in school
  
• Meets Pay-As-You-Go fiscally responsible principles and reduces the deficit  

• Converts all new federal student lending to the stable, effective and cost-efficient Direct Loan program. Beginning July 1, 2010, all new federal student loans will be originated through the Direct Loan program, instead of through lenders subsidized by taxpayers in the federally-guaranteed student loan program. Unlike the lender-based program, the Direct Loan program is entirely insulated from market swings and can therefore guarantee students access to low-cost federal college loans, in any economy.
• Provides students with low-cost federal college loans with the same interest rates, terms and conditions as loans made by lenders – and the peace of mind of knowing those loans will never disappear. Loans made through both the Direct Loan and the federally-guaranteed student loan programs carry an interest rate of 6.8 percent – a much more affordable interest rate than private loans carry. Under this legislation, federal student loan borrower will be able to borrow the same loans, at the same good rates as before – but these loans will be more cost-effective for taxpayers.  
  

• Upgrades the services all federal student loan borrowers receive. Rather than force private industry out of the system, the bill will forge a new public-private partnership that both maintains jobs and provides all borrowers with the highest-quality customer service when repaying their loans. It will establish a competitive bidding process that allows the U.S. Department of Education to select lenders based on how well they serve borrowers, provide financial literacy counseling, and prevent loan defaults. The legislation will also provide a role for non-profits to continue servicing student loans.
• Preserves servicing jobs in communities across the country. Between this new public-private partnership and the more than $500 billion in outstanding federally-guaranteed student loans that will still need to be serviced, there will be tremendous demand for workers to continue providing great service to Americans repaying their loans.
  

• College financial aid offices already have the infrastructure in place to administer Direct Loans. Schools will be able to operate these loans using the same on-site system currently used to administer Pell Grant scholarships; almost all schools participate in the program. Colleges and universities that have switched to Direct Loans, including those that converted in the midst of last year’s credit crisis, report that it was a fairly easy and inexpensive process. Currently about 1,700 schools participate in the Direct Loan program, including 500 colleges that switched in the past year alone. Under this bill about 4,500 colleges will need to switch to Direct Loans.

• Build a 21st century workforce by encouraging historic partnerships between community colleges, businesses, job training and adult education programs. The bill will create a new competitive grant program for community colleges to improved instruction, work with local employers, improve their student support services, and implement other innovative reforms that will lead to a college degree, certificate or industry-recognized credential to fulfill local workforce needs. The Secretary of Education will be able to evaluate the effectiveness of all programs and policies funded through these grants by using 2 percent of these funds to commission the Institute for Education Sciences to conduct a rigorous study to help the Secretary determine which reforms may be replicated at other colleges and states.
• Incentivize community colleges to achieve excellence by requiring them to meet benchmarks in order to participate in the challenge grant program. Under the program, the Secretaries of Education and Labor will award four-year grants to community colleges and other 2-year degree granting institutions on a competitive basis to support innovative pilot programs and policies. In order to continue to receive funding for year three of the grant period, community colleges must meet benchmarks they set in consultation with the Secretary of Education’s approval. Pilot programs and policies must also demonstrate that they can be replicated either in the state or nationwide. The minimum grant that can be awarded is $1 million. Funds can be used to carry at least two of the following activities:
  

1. Facilitating transfer of credit articulation agreements;
2. Expanding academic and training programs that provide relevant job-skill training for high-wage occupations in high-demand industries; 
3. Improving student support services including those identified under the Workforce Investment Act; 
4. Creating workforce programs that blend basic skills and occupational training leading to industry-recognized credentials; 
5. Building and enhancing linkages including dual enrollment programs and early college high schools as well as improving remedial and adult education programs; and
6. Implementing reform programs to increase completion rates and provision of training for students to enter high-wage occupations in high-demand industries.
   

• Ensure that more students graduate with the expertise needed for high wage jobs and high-demand industries. Targets grants to high-need students and programs that focus on preparing students for jobs in fields that need workers and will continue to grow. The Secretaries would also be able to award six-year competitive grants to states to implement successful Challenge Grant Program reforms at other community and junior colleges within the state. Funding could be discontinued if the state does not make progress meeting benchmarks it develops with the Secretary by year three of the grant period.

• The U.S. Department of Education would be authorized to make competitive grants available to eligible colleges, workforce programs or other entities to help support the development of these courses.

• Helps community colleges construct, renovate and repair their facilities by providing $2.5 billion, which will leverage additional funds, and ensures that funding is used for facilities that are primarily used for instruction, research, or student housing.

• Early learning standards reform.
• Evidence-based program quality standards.
• Enhanced program review and monitoring of program quality.
• Comprehensive professional development.
• Coordinated system for facilitating screenings for disability, health, and mental health needs. 
• Improved support to parents.
• Process for assessing children’s school readiness.
• Improved data systems to improve child outcomes.
  

• Build an effective, qualified, and well-compensated early childhood workforce by supporting more effective providers with degrees in early education and better compensation, and providing sustained, intensive, classroom-focused professional development to improve the knowledge and skills of early childhood providers
• Best practices in the classroom by implementing research-based early learning and development standards aligned with academic content standards for grades K-3.
• Promote parent and family involvement by developing outreach strategies to parents that will help them support their children’s development.
• Fund quality initiatives that improve instructional practices, programmatic practices, and classroom environments that promote school readiness.
  
• Quality standards reform that moves toward pre-service training requirements for early learning providers, and adoption of developmentally appropriate standards for teacher-child ratios and group size.

• Higher Pell Grant scholarship of $5,550 in 2010 and $6,900 in 2019.

About 6 million students received the Pell Grant scholarship in 2007-2008.

• Lower interest rates on need-based (subsidized) federal student loans.

Nationwide about 5.5 million students borrow these loans each year.

• More access to Perkins loan program by expanding it to every U.S. college campus.

Last year approximately 495,000 students received a Perkins Loan.

• Shorter, simpler FAFSA form that makes applying for financial aid easier.

In 2003-2004, over 1.5 million college students who likely were eligible to receive Pell Grants didn’t apply for financial aid because they found the FAFSA form too confusing.

• New college access and completion programs to help you stay in school and graduate.
• Innovative partnerships between colleges, businesses and job training programs to help you get the real-world experience and skills you need to be ready for the jobs of the future.
• Free, high-quality, online training and high school and college courses.
  

• Gives you the peace of mind of knowing that your federal student loans are stable.
• Removes any potential for conflicts of interest between lenders and colleges.
• Guarantees you the best customer service available when you repay your student loans.

Fix loan system for a stronger future
By: Rep. George Miller

This summer, millions of students will sit down with their families to figure out how to pay for college. They will unwittingly enter into a financial lending system that is badly broken — and not benefiting them as intended.

However, if Congress and President Barack Obama are successful, this system is about to undergo a major change.

The college financing system that was supposed to ensure all students access to college is dangerously out of control, for three reasons.

First, tuition has skyrocketed and shows no signs of abating.

Second, the roller-coaster credit markets have put the federally guaranteed student loan program, which for years has originated almost three-quarters of all federal college loans, on life support.

Cut to 2009, when Barack Obama thinks education is the most exciting of subjects. Even so, Obama and his education secretary, Arne Duncan, get Barzun. They understand that the key to fixing education is better teaching, and the key to better teaching is figuring out who can teach and who can't.

...

Like Obama and Duncan, Rep. George Miller, the leading reformer in Congress, wants the money to be targeted on just a few programs with track records in turning around poorly performing schools and training teachers better. He rightly figures we know what works now and should just go ahead and fund it.