Senator Bayh believes that education is the ticket to a wider range of opportunities for Hoosiers, giving them the ability to secure their personal futures. Unfortunately, today Indiana’s schools and teachers lack crucial support they need to help their students succeed in the classroom. Additionally, when it comes to higher education, costs continue to rise at alarming rates, making the dream of a college education less affordable for far too many. It’s estimated that between 2001 and 2010, 4.4 million low and moderate income, academically qualified students across the country will opt to not enroll in a four-year university, and two million of them will forgo college entirely because the costs are beyond their reach. Throughout his public service, Senator Bayh has worked tirelessly to make certain that a quality education and the ensuing opportunities are within the reach of all Hoosiers, earning him a 100 percent rating from the American Federation of Teachers and a 90 percent rating from the National Education Association.

Increasing Financial Aid

Senator Bayh supported increasing financial aid for college students by more than $20 billion as part of the College Cost Reduction and Access Act of 2007. The legislation raised the maximum Pell Grant amount by nearly $500 to $4,800 per eligible student and to $5,400 by 2012. Additionally, the legislation cuts the interest rate on subsidized student loans from 6.8 percent to 3.4 percent. It also provides loan forgiveness to those who are willing to commit to public service careers and protects borrowers by capping monthly loan payments at 15 percent of discretionary income, helping ease excessive loan burdens.

Tax Relief for Students and Families

To ease the burden middle class families face with rising tuition costs, Senator Bayh authored legislation that was overwhelmingly passed by the Senate to make permanent the income tax deductions to help pay for college. The college tuition tax deduction, created in 2002, allows a $4,000 deduction for individual taxpayers with incomes below $65,000 and married couples with incomes below $130,000. It provides a deduction of $2,000 for singles with incomes below $80,000 and married couples with incomes below $160,000.

Recognizing that families often encounter a confusing tax code when it comes to higher education tax credits, Senator Bayh introduced the Universal Higher Education and Lifetime Learning Act. The legislation simplifies the tax code by consolidating the Hope Credit, the Lifetime Learning Credit and the tuition tax deduction into one simplified and expanded $3,000 per student tax credit. Additionally, the legislation offers a 50 percent refundable credit for the one-third of American households that do not have federal income tax liability.

Interest Relief for Active Duty Soldiers

Recognizing the sacrifice made by the men and women serving in the armed forces and their families, Senator Bayh introduced the Interest Relief Act to suspend accrual of interest on federal student loans for active duty soldiers and their spouses. Eligibility would include active duty soldiers of any branch of the military, including reserve units and the National Guard, and their spouses, who have student loans through the Federal Direct Loan Program. The interest accrual deferment could be for up to five years while on active duty. For those activated for 12 to 15 months, the bill would mean an average savings of between $1,183 and $1,479 in interest over their activation period.

Advocating Real Support for Students and Schools

Senator Bayh learned firsthand as governor that education reform is not possible without crucial support and full funding. On Capitol Hill, he has been a leading voice in calling for ending unfunded mandates and for fully funding the Individuals with Disabilities Education Act, pointing out that the nation’s schools and students deserve real support in order to achieve real results. Additionally, Senator Bayh has proposed changes to the way federal education dollars are divided in order to provide Indiana schools with their fair share of funding. He has also taken aim at bureaucratic red tape, sponsoring legislation to give Indiana schools more flexibility to spend education dollars as needed.

Tax Relief for Teachers

Recognizing that America’s teachers often put their own financial resources into providing a quality learning environment for their students, Senator Bayh introduced the Teachers Tax Relief Act of 2007. Under this legislation the tax deduction for teachers who spend their own money on classroom supplies would increase from $250 to $400.

21st Century Scholars

As governor of Indiana, Senator Bayh created the 21st Century Scholars Program, which has helped open the doors of Indiana’s colleges and universities to young Hoosiers since 1990. The program promises at-risk middle school students full tuition scholarships to Indiana colleges and universities in return for being drug, alcohol and crime-free and maintaining good grades. This groundbreaking program was the first of its kind in the nation to successfully graduate students. A 2002 Lumina Foundation for Education study cited the 21st Century Scholars Program as one main factor for increasing substantially the percentage of high school graduates who go on to college.