U.S. Secretary of Education Rod Paige today issued the following statement on President Bush's Proposed Budget for Higher Education:

"President Bush is committed to keeping college affordable for America's low- and middle-income families by increasing funding for grants, low-interest student loans and tax breaks for working families. All told, federal support to American families for higher education under President Bush's plan will exceed $76 billion in 2003.

"Under the President's budget proposal the number of needy students receiving grants increases by one million and the maximum grant increases 21 percent over the past two years—to $4,000. Plus, the Administration has also proposed ways to cover the $1.3 billion hole in the Pell Grant Program that was created because Congress failed to provide enough money.

"In other words, Congress wrote a check for $11.6 billion but deposited only $10.3 billion to cover it.

"Interest rates on loans are at an all time low. And, we've proposed loan forgiveness for highly-qualified math, science and special education teachers serving low-income students.

"In addition, tax credits and deductions provide even more savings for our nation's college students and their families. For example, next year, students and families will save:

• an estimated $3.5 billion under the HOPE tax credit, which allows a credit of up to $1,500 for tuition and fees during the first two years of postsecondary education;
• $2.4 billion under the Lifetime Learning tax credit, which allows a credit of up to $2,000 for undergraduate and graduate tuition and fees;
• $2.3 billion under a new above-the-line deduction of up to $3,000 annually in higher education expenses; and
• $640 million in above-the-line deductions for interest paid on postsecondary student loans.

"It's deeply troubling to me that after a year of strong bipartisan support for education—including the largest increases ever for our K-12 schools and our colleges and universities—some are resorting to petty politics to mislead the American people about this Administration's support for our college students and their families.

"This President is committed, in word and deed, to ensuring access and greater affordability so every young person who wants to go to college will have the opportunity to do so."

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