Earlier today, the White House released a budget overview and the budget tables for the President’s Fiscal Year 2014 Budget Request. At 1:30 on April 10th, the U.S. Department of Education will hold a briefing to discuss the President’s education requests. The briefing will be held in the Department’s Auditorium in the LBJ Building, 400 Maryland Ave. SW, in Washington DC.
The briefing will also be live streamed for those outside of the DC area.
UPDATE: Here is the Department of Education portion of the budget.
Two ideas of note for higher education a higher education Race to the Top and introducing a market interest rate for student loans. Senators Alexander, Burr and Coburn introduced a bill yesterday that would accomplish the student loan reform proposed by the President in the budget, although there may be a difference on the exact terms of the interest rate – so perhaps there is a consensus on this proposal. The Race to the Top proposal appears to be the proposal raised in last year’s budget:
Makes Student Loan Interest Rates More Market-Based.
Under current law, interest rates on subsidized Stafford loans are slated to rise this summer from 3.4 percent to 6.8 percent. At a time when the economy is still recovering and market interest rates remain low, the Budget proposes a cost-neutral reform to set interest rates so they more closely follow market rates, and to provide students with more affordable repayment options. The rate on new loans would be set each year based on a market interest rate, which would remain fixed for the life of the loan so that student borrowers would have certainty about the rates they would pay. The Budget also expands repayment options to ensure that student borrowers do not have to pay more than 10 percent of their discretionary income on loan payments.