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

Jobs Regional K-12 Virtual Career Fair: DMV
Find teaching jobs and K-12 education jubs at the EdWeek Top School Jobs virtual career fair.
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
Artificial Intelligence Webinar
Making AI Work in Schools: From Experimentation to Purposeful Practice
AI use is expanding in schools. Learn how district leaders can move from experimentation to coordinated, systemwide impact.
Content provided by Frontline Education
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
Student Well-Being & Movement Webinar
Building Resilient Students: Leadership Beyond the Classroom
How can schools build resilient, confident students? Join education leaders to explore new strategies for leadership and well-being.
Content provided by IMG Academy

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 Teachers Blame Parents for Young Learners' Deficits. But There's a Bigger Story
Teachers and parents are experiencing similar levels of stress caring for and educating kids.
5 min read
Four-year-old Ethan Quinn leaves home for his daycare center in Concord, Calif., Wednesday, Nov. 1, 2023. Ethan's parents opted to keep him in a private daycare center instead of enrolling him in “transitional kindergarten” — a program offered for free by California elementary schools for some 4-year-olds. (AP Photo/Jae C. Hong)
A four-year-old prepares to leave home for his daycare center in Concord, Calif., on Nov. 1, 2023. His parents chose private daycare over California’s free “transitional kindergarten” program for some 4-year-olds—a decision that reflects how families often navigate limited time, work demands, and early education options in shaping school readiness.
Jae C. Hong/AP
Early Childhood What Are the Ingredients of a Good Preschool Curriculum?
Nonprofit curriculum reviewer EdReports has started reviewing pre-K materials.
7 min read
Handout showing Library at Austin Achieve in Austin, Texas.
A classroom library at Austin Achieve, a charter school in Austin, Texas, which uses Every Child Ready, one of three curriculum series recently reviewed by an external rating organizations.
Every Child Ready
Early Childhood State Pre-K Hits Record Enrollment, But Advocates Caution About Quality
State-sponsored preschool programs enrolled 1.8 million children in 2024-25, a new report finds. But some were higher quality than others.
2 min read
Ethan Quinn, 4, stands on a rock while playing with his classmates outside his daycare center in Concord, Calif., Nov. 1, 2023. Enrollment in state-supported preschool programs reached nearly 1.8 million students in 2024-25, a new record.
Ethan Quinn, 4, stands on a rock while playing with his classmates outside his daycare center in Concord, Calif., Nov. 1, 2023. Nationwide, enrollment in state-supported preschool programs reached nearly 1.8 million students in 2024-25, a new record; California was among the states with high growth.
Jae C. Hong/AP
Early Childhood Kindergartners Aren't Talking Enough in Class. Why That Matters
In the quest to develop young readers, oral language takes a back seat to the written word, say experts.
4 min read
Pre-K 4 SA students eat a provided breakfast, Oct. 9, 2025, in San Antonio.
Pre-K 4 SA students eat a provided breakfast, Oct. 9, 2025, in San Antonio. Experts say everyday classroom moments—like meals—can offer important opportunities for conversation that support young children’s language and early literacy development.
Eric Gay/AP