February 21, 2008

President's Fiscal Year 2009 Budget Proposal

On February 4, 2008, President Bush submitted his $3.1 trillion FY 2009 budget proposal to Congress. The budget proposal, which sets funding levels for the Department of Education (ED) and other federal agencies, requests nearly $60 billion for education programs and provides for a $2.7 billion increase in federal Pell Grants. Under the proposed budget plan, ED will provide $138 billion in federal student aid grants and loans to 10.9 million students and parents in 2009.

The budget proposal eliminates 47 education programs, including the Federal Perkins Loan Program, Federal Perkins Loan Cancellations, Byrd Honor Scholarships, and the Federal Supplemental Educational Opportunity Grants (FSEOG), creating almost $3.3 billion in budget savings. Past attempts by the administration to eliminate these programs have been unsuccessful. The budget proposal does not include additional cuts to lenders or guaranty agencies and acknowledges that cost estimates for the Federal Family Education Loan (FFEL) and Direct Loan (DL) programs have changed due to the College Cost Reduction and Access Act (CCRAA).

Additional information regarding the President's FY 2009 budget proposal can be found in the National Council of Higher Education Loan Programs' (NCHELP) Summary of FY 2009 Budget Proposal.