Early Childhood

House Loan Measure Would Free Up Cash for Early Education

Passage sends college-lending overhaul to Senate
By Alyson Klein — September 18, 2009 3 min read
  • Save to favorites
  • Print

Includes updates and/or revisions.

Early-childhood-education programs and school facilities would get major new federal aid under a bill approved last week by the U.S. House of Representatives that would cover the cost of that spending by revamping the way the federal student-lending program operates.

The House legislation, which passed Sept. 17 by a vote of 253-171, would scrap the Federal Family Education Loan Program, under which the government subsidizes private lenders to make federal loans.

Instead, starting in July of next year, all loans would originate with the William D. Ford Federal Direct Student Loan Program, in which students borrow from the U.S. Treasury. The change, largely based on a proposal put forward by President Barack Obama, would save about $87 billion over 10 years, according to the nonpartisan Congressional Budget Office.

The legislation must now go to the Senate, where a separate bill on the same issue is still being worked out in committee.

“It’s a win for students. They’ll have dependable access to federal college aid,” Rep. George Miller, D-Calif., the chairman of the House Education and Labor Committee, said during floor debate. “And it will help again regain our global leadership in both competitiveness and in college-graduation rates.”

School Construction

A portion of the projected savings from the Student Aid and Fiscal Responsibility Act, about $4 billion over two years, would go to districts to help with school modernization, renovation, and repair. The money would flow through the same formula used for Title I Part A of the Elementary and Secondary Education Act, which aids disadvantaged students, but each district would receive at least $5,000.

Most of the projects would have to meet certain energy and environmental building standards. States could reserve 1 percent of the funding to administer the program and develop voluntary guidance on how the money should be used. The measure would provide an additional $60 million over two years for public elementary and secondary schools in the Gulf Coast region that were devastated by hurricanes Katrina and Rita in 2005.

“We think this is a good start,” said Mary Filardo, the executive director of the 21st Century Schools Fund, an organization in Washington that advocates improved urban school facilities. She said the federal government contributes about 10 percent of schools’ operating budgets and would like to see Congress pass legislation covering the same amount of capital costs.

The bill also would provide $1 billion annually for an “Early Learning Challenge Fund,” which would help states improve early-learning standards, provide professional development for instructors, and improve support to parents, as well as other measures. (“Early Education Issues Return to Spotlight,” this issue.)

And the bill would include $10 billion over 10 years to bolster community colleges, plus additional resources to improve community-college facilities.

It calls for grants of at least $1 million each for community colleges to help overhaul remedial and adult-education programs and improve dual-enrollment offerings, such as early-college high schools, among other activities.

The measure also includes $40 billion to increase the maximum annual Pell Grant scholarship to $5,550 in 2010 and to $6,900 by 2019. And, starting in 2010, the grants, which go to low-income students, would be linked to the Consumer Price Index plus 1 percentage point.

Savings Questioned

Still, those elements weren’t the focus of most of the floor debate over the legislation, which centered on the student-loan provision. Many GOP lawmakers are worried about the long-term implications of the switch and dubious about the estimate of projected savings.

During floor debate, Rep. John Kline of Minnesota, the top Republican on the House Education and Labor Committee, referred to a second CBO estimate, requested by Sen. Judd Gregg, R-N.H., that took into account “market risk” and showed considerably less savings—about $47 billion.

Rep. Kline said those who say the bill would increase the federal deficit “have the arguments in their favor” and labeled the bill “an expansion of the government, with new programs and new spending. It is a government takeover,” he said.

Sen. Tom Harkin, D-Iowa, the new chairman of the Senate Health, Education, Labor, and Pensions Committee, also expects legislation in that chamber to include new resources for school facilities, early-childhood education, and community colleges, a Democratic Senate aide said.

A version of this article appeared in the September 23, 2009 edition of Education Week as House Bill Would Free Up Cash for Early Education

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
From Student Trends to Counselor Action: Turning Insight Into Impact
Find out what is changing in how students approach planning for life after graduation and how schools can help.
Content provided by PowerSchool
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
McKinney-Vento Transportation Strategies: Managing Cost & Protecting Access
Explore McKinney-Vento transportation strategies to manage costs, respond quickly to changing needs, and protect student access.
Content provided by HopSkipDrive
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Families & the Community Webinar
Celebrate Family Engagement Day With Strategies That Work
Join National PTA and AASA to explore practical systems-wide family engagement strategies in celebration of National Family Engagement Day.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Early Childhood Mud Pies and Monkey Bars: Inside a Transitional Kindergarten Built for Play
When elementary schools welcome 4-year-olds, they must reimagine their facilities, curricula, and teacher training.
10 min read
T-K student Ellie Rueda steps up to wash her hands as Jonathan Tucux Ramazzini waits his turn after recess at Laurel School in Atherton, Calif., on Monday, November 2, 2026. The school recently adapted their existing property to accommodate 4 year-olds and their specific developmental needs, including step ladders for hard to reach places.
TK student Ellie Rueda steps up to wash her hands as Jonathan Tucux Ramazzini waits his turn after recess at Laurel Elementary School in Atherton, Calif., on Nov. 2, 2026. Policymakers and administrators are banking on transitional kindergarten offerings to help stem public school enrollment declines—but schools must prepare to accommodate the youngest learners' unique set of needs.
Preston Gannaway for Education Week
Early Childhood Trump Admin. Finalizes Rollback of Required Raises for Head Start Teachers
A Biden-era policy would have raised the average Head Start worker’s salary by about $10,000 by 2031.
4 min read
Teachers Deimy Labrador, top, and Emily Ledesma read with children in an Early Head Start class supporting kids with developmental delays at Easterseals South Florida, an organization that gets about a third of its funding from the federal government Wednesday, Jan. 29, 2025, in Miami.
Teachers Deimy Labrador, top, and Emily Ledesma read with children in an Early Head Start class supporting kids with developmental delays at Easterseals South Florida on Wednesday, Jan. 29, 2025, in Miami. The Trump administration has formally rescinded a Biden-era policy that required Head Start programs to raise employee wages as a way to address high turnover.
Rebecca Blackwell/AP
Early Childhood Video Students Have Big Feelings. Can Principals Interpret Them?
Four school leaders share how they're helping students learn to regulate their emotions.
1 min read
Pre-K 4 SA teacher Deziree Arce, center, comforts one of her her students, Oct. 9, 2025, in San Antonio.
Pre-K 4 SA teacher Deziree Arce, center, comforts one of her her students, Oct. 9, 2025, in San Antonio.
Eric Gay/AP
Early Childhood Download When Transitions Lead to Tantrums: How to Help Young Students Be More Flexible
Preschool students are increasingly inflexible, say teachers. Experts explain why, and how to help.
5 min read
Illustration of a bundle of winding roads. They weave in and out of each other, suggesting that they may be tangled. Outside of the roads, there's dotted lines, arrows, dots and swirls marking paths and pointing different directions.
Illustration by Emily Wright for Education Week + Getty