HIGHER EDUCATION: Fact Sheet - 9/2/92 September 2, 1992 PRESIDENT BUSH'S UNPRECEDENTED SUPPORT FOR HIGHER EDUCATION President Bush has given unprecedented support to higher education, increasing access to higher education by proposing increases in funding for Pell Grants and innovative new programs to promote lifelong learning. o More Help for Students and Families: The President's FY 1993 budget proposes the largest one-year increase in Pell grants in history. His $6.6 billion request -- a 22% increase over FY 1992 and 48% over 1989 -- would increase maximum and average Pell grant awards substantially and support awards to 3.4 million students. As a proportion of overall awards, more funds would go to middle-income students. -- To increase access to Pell Grants for middle-income families, the President has proposed a cap on the amount of a family's home value that may be included in calculating a student's expected family contribution. -- The President would increase funds for guaranteed student loans by $2.1 billion -- a 60% increase over 1992 -- and allow the deduction of interest paid on or after July 1, 1992 on student loans for higher education. o Giving Students Flexibility: President Bush's Lifelong Learning Act of 1992 would allow up to $25,000 authorized by the Student Loan Marketing Association (Sallie Mae) to be available and repayable on an income-contingent basis. Borrowers would have the option of having repayments tied to fixed percentages of their income. The Lifelong Learning Act would also give Americans of all ages the opportunity to pursue higher education by extending Pell Grant and Guaranteed Student Loan eligibility for less than half-time students. -- Clinton's lifelong learning programs, as one might expect, involves a major new government program. Unlike the President's programs, which could be financed by spending cuts the President has already proposed, Clinton has been disingenuous about the costs of his proposal. While Clinton contends that his program would cost just $9 billion, during the primaries Paul Tsongas argued that the cost would approach $20 billion. (USA Today, 4/24/92) o Maintaining the Integrity of the Student Loan Program: The Bush Administration has moved aggressively to curb loan defaults and eliminate abuse in the Guaranteed Student Loan program. Initial legislative changes proposed by the Administration were enacted by Congress in 1991. o Rewarding Excellence: President Bush's unprecedented proposal to reward excellence in the Pell grant program would give Presidential Achievement Scholarships of up to $500 to every Pell grant recipient who demonstrates high academic achievement. His National Science Scholars program rewards outstanding achievement by students pursuing collegiate degrees in mathematics, science, and engineering.