The Justice

April 30, the date that marks President Barack Obama's first 100 days in office, is rapidly approaching. United States presidents are typically evaluated by their first 100 days. Obama has delivered legislation of real value for college students in his first 100 days. Two areas stand out: Obama's handling of the student loan system and what he has made of the recession.

The most pressing issue for college students is often paying the bills. Obama offered three reforms in his budget that relate to college financing. The first deals with Pell Grants. Obama proposed that the Pell Grant be increased to $5,500 and moved to, in the words of Education Secretary Arne Duncan, "the mandatory side of the Congressional budget." This means that the grants will not be subject to the whims of the financial markets or banks. Instead, the government will make these grants a permanent part of the budget.

The budget legislation ensures that Pell Grants are indexed above inflation. This means that as dollar values change, so will the amount of money available for loan from the government. Pell Grants have lower rates of interest than private loans. This part of the plan is a concrete way to make college education available to all students.

The second reform deals with streamlining loans in general. All new loans will now function under the direct loan system, which takes the loans out of the hands of the market.

The system will also make the granting of loans more efficient because the loans will be centralized. This saves taxpayers $4 billion every year and makes life easier for students. This proposal is one way that the Obama administration hopes to make the confusing financial aid process simpler.

The third reform deals with the expansion of Perkins loans. Perkins loans are used to supplement paying for costs the Pell Grants are not large enough to cover. The number of schools offering Perkins loans will go from 1,800 to 4,400. The number of students who will qualify will go from 500,000 to 2.7 million. The loans would carry a five percent interest rate. The private sector would handle debt collection.

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