U.S. Secretary of Education Rod Paige today reported that record numbers of American students received some sort of federal aid to attend college or pursue career training during the fiscal year that ended earlier this week.

"The Bush Administration is committed to helping families finance postsecondary education by making grants and low-cost loans widely available," Paige said, "and more aid is available now than ever before. President Bush and I will continue working to give more students access to a quality education at all levels, and we will work particularly hard to improve opportunities for minorities, students from low-income families, and other students underrepresented on college campuses."

In FY 2001, more than 8 million students received more than $47.2 billion in federal grants, loans (excluding consolidation loans) and campus-based programs. Nearly 4 million students received $9 billion in federal Pell Grants, which serve the neediest students. President Bush has proposed increasing Pell Grant funding by $1 billion as part of his FY 2002 budget.

Paige added that a number of benefits in the tax reform package, signed into law by President Bush earlier this year, will help families finance a college education or job training courses, including:

• Interest deduction for student loan payments until loans are repaid entirely instead of the first 60 months;
• The expansion of state tax-free savings plans and an increase in the amount that can be invested in tax-free Education Savings Accounts to $2,000 per year; and
• Income tax payment rebates to families that can be used to pay for books and tuition.

Paige noted, however, that rising costs of college tuition and expenses have forced many students to borrow increasing amounts to pay for college. In FY 2001, approximately 5.31 million students borrowed $34.8 billion in federal student loans, more than triple the $11.7 billion borrowed in FY 1990.

Paige said that nearly two million disadvantaged students received help under the TRIO and GEAR UP programs in FY 2001. The Department awarded over $1 billion for outreach and support services that help students from low-income families and other groups underrepresented on college campuses prepare for and complete a college education.

In addition, more than $332 million was dedicated in FY 2001 to improve academic programs, student services, and buildings at colleges that serve a majority of African-American, Hispanic and Native American students.

"The Education Department’s federal student aid and institutional programs make a significant contribution to helping more students from all backgrounds attend quality academic and job training programs," Paige said. "All Americans deserve a quality education at all levels, and the president and I will work tirelessly toward that goal."

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