Early Childhood

Proposed College-Loan Savings Would Aid Early Ed.

By Alyson Klein — August 11, 2009 4 min read
  • Save to favorites
  • Print

Congress is considering a significant new investment in early-childhood-education programs and school facilities, paid for by a major—and controversial—overhaul of the federal student-loan program.

A bill based largely on a proposal put forward by President Barack Obama in his fiscal year 2010 budget request would scrap the Federal Family Education Loan Program, under which the government subsidizes private lenders to make federal loans. (“President’s Education Aims Aired,” Feb. 28, 2009.)

Instead, under legislation passed by the House Education and Labor Committee last month, all loans starting next July would originate with the direct-lending program, in which students borrow from the U.S. Treasury. The change would save about $87 billion over 10 years, according to the nonpartisan Congressional Budget Office.

A portion of that savings, $8 billion over eight years, would be used to create a competitive-grant program to help states boost the quality of their early-childhood programs, serving children from birth through age 5, the bill says.

The bill also includes more than $4 billion to help districts revamp school facilities, including making them more environmentally efficient.

Rep. George Miller, D-Calif., the chairman of the House education panel, said during debate over the legislation July 21 that the measure would “write the next great education legacy for our country .... at no cost to taxpayers.”

But Rep. John Kline of Minnesota, the top Republican on the panel, called the student-loan changes a“government expansion initiative that crowds out the private sector in the name of a bigger, more intrusive federal government.”

And he said the new initiatives created under the bill, including the early-childhood program, would mean “perpetual new entitlement spending.”

The measure was approved on a largely partisan vote of 30-17, with just two Republicans, Reps. Todd Platts of Pennsylvania and Thomas Petri of Wisconsin, crossing over to vote with the Democrats.

The Senate Health, Education, Labor, and Pensions Committee is expected to introduce its own version of the bill in coming weeks. That measure could also make room for the new school facilities and early-childhood programs.

Challenge to States

To qualify for the competitive early-learning grants, states would have to rework their early-learning standards, step up program review and monitoring, offer comprehensive professional development, and screen children’s health, mental health, and disability needs.

States would also have to work on improving support to parents and assessing children’s school readiness. The program would be administered by the U.S. Department of Education, in collaboration with the Department of Health and Human Services, which operates the Head Start program.

The new early-childhood-education program created under the bill would be mandatory, meaning it would not be subject to the whims of the annual appropriations process. Last month, the House Appropriations subcommittee that deals with education spending rejected a $500 million early-childhood-education proposal in the administration’s fiscal 2010 budget request because it was too costly.

Danielle Ewen, the director of child-care and early-education policy at the Center for Law and Social Policy, in Washington, called the measure “a great first step.” She said she hoped it would “change the conversation” among state policymakers “not to be about quality versus access but to be about access to quality.”

Funding for Facilities

The bill also includes resources for school facilities—a longtime priority for Rep. Miller. Under the measure, more than $4 billion in school facilities grants would go out under the Title I, Part A formula. Every Title I district would get a grant of at least $5,000. The majority of the money would need to be used for projects that meet “green” building standards.

During the House committee’s consideration of the bill, Rep. Michael N. Castle of Delaware, a moderate Republican, voiced concern that Congress is spending money on a new construction program while it still hasn’t provided enough funding for special education.

Another huge chunk of the projected savings, about $40 billion, would be used to boost Pell Grants, which help low-income students pay for college. The bill would index Pell Grants to the Consumer Price Index, plus 1 percent, as Mr. Obama had suggested in his budget. The maximum Pell Grant award would rise from $5,550 in 2010 to $6,900 in 2019 under the bill.

But the measure would stop short of making the Pell Grant program mandatory, as Mr. Obama had proposed in his budget.

Another portion of the projected savings—$10 billion over 10 years—would be used to pay for a major community-college proposal that Mr. Obama introduced last month.

That proposal would include additional resources to improve school facilities and online course offerings. It would dole out grants of at least $1 million each for community colleges to help retool remedial and adult education programs and improve dual-enrollment offerings, such as early college high schools, among other activities.

As the partisan vote in the House committee indicates, the measure is sure to face significant opposition from some lenders and members of Congress, who worry about expanding the federal government’s role in originating loans.

Still, the bill would preserve a role for the private sector. It would establish a competitive-bidding process that would permit the Education Department to choose lenders to service loans, based on the quality of their service to borrowers. And nonprofit lenders would continue to service student loans.

A version of this article appeared in the August 12, 2009 edition of Education Week as Proposed College-Loan Savings Would Aid Early Ed.

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
College & Workforce Readiness Webinar
CTE for All: How One School Board Builds Future-Ready Students
Discover how CPSB uses partnerships and high-quality digital resources to build equitable, future-ready CTE pathways for every student.
Content provided by Cengage School
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

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 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
Early Childhood Q&A What One Researcher Saw Inside 29 Kindergarten Classrooms
Developmental psychologist Susan Engel shares insights from two years in kindergarten classrooms.
10 min read
MVCS 2522
A kindergarten sign is displayed at a school in Colorado Springs, Colo., on Feb. 12, 2026, as classrooms nationwide shift toward more academic instruction and less play.
Kevin Mohatt for Education Week
Early Childhood 'Addicted to Screens': Teachers Sound the Alarm on Their Youngest Students
Too many students are entering school unprepared to learn, according to a national survey of early educators.
4 min read
Watercolor illustration of a diverse group of young kindergarten through 3rd grade school children all holding their own digital device.
Illustration by Gina Tomko/Education Week + Canva