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President Obama is committed to restore America’s No.1 position in the world in higher education. He stresses that after high school, all Americans should enroll in at least one year of higher education. In order to achieve these goals, President takes efforts to increase higher education access and restructure college financial aid.

Obama said that his administration will provide all the essential support for Americans to complete college and meet the goal of achieving top place in having more number of college graduates in the world.

The Health Care and Education Reconciliation Act represents a great investment in higher education. It increases the opportunity for American families and students to get higher education. The legislation reinforces the Pell Grant program, extends support to minority institutions and historically black colleges and universities and invests in community colleges. It also provides assistance to student borrowers to manage their student loan debt.

The Health Care and Education Reconciliation Act endows over $40 billion in Pell Grants to make sure that all eligible students avail of these funds. These awards will be improved in future to compensate the increasing cost of college. The investments of this act and Presidents first two budgets will increase the total amount of funding available to Pell Grants significantly.

The federal Pell Grant is increased by the bill from $5,550 to $5,975 (from 2013 through 2017). Around 820,000 additional Pell Grant awards will be made by the academic year of 2020-2021.
Obama administration is planning to offer unwavering financial support for Pell Grants.

Funding shortfalls are common while allotting funds in budget for Pell Grants. At present, this shortfall is more severe, as a large number of students are eligible to receive this award. The Health Care and Education reconciliation Act covers the funding shortfall and ensures to offer more stable funding for Pell grants.

Nowadays, many colleges and universities face numerous problems, including decreasing endowments, weakening facilities, decreasing state funds and increasing costs. The problems are more severe for Historically Black Colleges and Universities and minority institutions.

The Health Care and Education Reconciliation Act therefore offers increased support to these institutions. It provides $2.55 billion mandatory funding for these institutions. These funds can be used to expand and renew programs to ensure that these institutions are given more chances to increase their potential.

Community colleges play an important role in the higher education system of America. They enroll more than 6 million students. Affordable tuition, flexible course schedules and open admission policies are some of the specialties of community colleges.

Students who are working, older and need remedial classes find community college courses more beneficial. The Health Care and Education Reconciliation Act allows $2 billion that is spread over four years for community colleges. These funds will help community colleges to develop and improve career training programs.

The Health Care and Education Reconciliation Act offers funds to the educated related initiatives and they are fully paid by government subsidies that are given to financial institutions that promise to offer federal student loans. From July 1, all new student loans will be direct loans provided and collected by private companies.

President Obama’s agenda for higher education matches with these investments and will help us reach his goal of making America No.1 in higher education.