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

School & District Management Webinar Squeeze More Learning Time Out of the School Day
Learn how to increase learning time for your students by identifying and minimizing classroom disruptions.
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
Reading & Literacy Webinar
Improve Reading Comprehension: Three Tools for Working Memory Challenges
Discover three working memory workarounds to help your students improve reading comprehension and empower them on their reading journey.
Content provided by Solution Tree
Recruitment & Retention Webinar EdRecruiter 2026 Survey Results: How School Districts are Finding and Keeping Talent
Discover the latest K-12 hiring trends from EdWeek’s nationwide survey of job seekers and district HR professionals.

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 Download 7 Ways to Help Kindergartners Regulate Their Emotions (DOWNLOADABLE)
Teachers report a surge in kindergartners struggling to regulate their emotions. This tip sheet has steps on how to respond.
1 min read
Kindergarten students practice greeting each other in a dual-language immersion class.
Kindergarten students practice greeting each other in a dual-language immersion class. Teachers report that more kindergartners are coming to class unable to effectively manage their emotions.
Allison Shelley for All4Ed
Early Childhood Q&A How a State's Transitional Kindergarten Expansion Has Gone So Far
California is gearing up to help more 4-year-olds get ready for kindergarten.
6 min read
Transitional kindergarten teacher Amy Weisberg helps a young student at Topanga Charter Elementary School in the Topanga district of Los Angeles on Sept. 11, 2012. A California law requires public schools to add a grade level this fall designed to give the very youngest students a boost when they enroll in kindergarten, but charter schools say the law does not apply to them, pitting them against the state Department of Education.
Transitional kindergarten teacher Amy Weisberg helps a young student at Topanga Charter Elementary School in the Topanga district of Los Angeles on Sept. 11, 2012. California will require public schools that offer kindergarten to add free, inclusive prekindergarten this school year.
Nick Ut/AP
Early Childhood ‘Crying, Yelling, Shutting Down’: There’s a Surge in Kindergarten Tantrums. Why?
Educators are reporting a surge in the number of kindergartners coming to school unable to regulate their emotions. What's going on?
6 min read
A kindergartener in a play-based learning class prepares for outdoor forest play time at Symonds Elementary School in Keene, N.H. on Nov. 7, 2024.
A kindergartner in a play-based learning class prepares for outdoor forest play time at Symonds Elementary School in Keene, N.H., on Nov. 7, 2024. Across the country, kindergartners are struggling with self-regulation.
Sophie Park for Education Week
Early Childhood Letter to the Editor Why Head Start Remains a Smart Investment for America
Full funding of Head Start is about strengthening our nation’s social and economic fabric, says this letter to the editor.
1 min read
Education Week opinion letters submissions
Gwen Keraval for Education Week