BUDGET

36 MEETING OUR GREATEST CHALLENGES: OPPORTUNITY FOR ALL
proposed in the next Higher Education Act reauthorization,
would support teacher and principal
preparation programs and nonprofits partnering
with school districts to create or expand
high-quality pathways into teaching and school
leadership, particularly in high-need subjects
such as STEM. A new program, Teach to Lead,
would fund teacher-led projects to improve the
quality of education, drawing on the knowledge
and passion of teachers to identify, implement,
and expand effective practices. Furthermore,
the Budget includes RESPECT: Best Job in the
World, a $1 billion mandatory initiative that
would support a nationwide effort to attract and
retain effective teachers in high-need schools by
increasing compensation and paths for advancement,
implementing teacher-led development
opportunities to improve instruction, and creating
working conditions and school climates
conducive to student success. This proposal is
a key strategy in the Department’s efforts to
ensure all students’ equitable access to effective
teachers.
Promoting College Affordability
and Completion
Today’s economy increasingly demands highly-educated
workers. Higher education is one of
the clearest pathways into the middle class, and
decades of research has shown large returns to
higher education in terms of labor market earnings,
health, and well-being. In fact, research
shows that the typical college graduate earns
twice as much over his or her lifetime as the typical
high school graduate. Further, over the next
decade, jobs requiring education beyond high
school will grow more rapidly than jobs that do
not, with more than half of the 30 fastest-growing
occupations requiring postsecondary education.
From the start of the Administration, the
President has focused on making college more
accessible and affordable for all Americans, with
the goal of making the United States the leader
once again in college completion, as it was a
generation ago. The Administration ended the
inefficient guaranteed student loan program and
reinvested the savings into making college more
affordable, including strengthening and expanding
the Pell Grant program, the cornerstone of
opportunity for low- and moderate-income students.
The Pell Grant program is now supporting
scholarships for significantly more students to
attend college than when the President took
office.
In December, the American Opportunity Tax
Credit (AOTC)—first enacted in the Recovery
Act—was made permanent. The AOTC expands
the level of support for college by providing a
maximum credit of $2,500 per year for the first
four years of college—up to $10,000 per student
to cover tuition and educational expenses. The
AOTC is partially refundable, so it provides
critical college tuition help to low- and moderateincome
families. The AOTC will cut taxes by over
$1,000, on average, for nearly 10 million families
in 2016.
Overall, since 2009, these investments in Pell
Grants and tax credits have doubled, increasing
the access and affordability of college for
students.
The Administration has also made historic
investments in the creation and expansion
of community college programs aligned to
in-demand jobs in high-growth industries
from health care to information technology
(IT). From 2011 through 2014, some $2 billion
in funding reached more than half of all
community colleges across the United States,
enrolling over 176,000 students to date.
Employers have donated thousands of dollars
in equipment, scholarships, tuition, and more
to support these programs.
The Administration also has made it easier
and faster for students to apply for Pell Grants
and other financial aid. Since taking office, the
Department of Education has significantly simplified
the Free Application for Federal Student
Aid, known as the FAFSA. The Administration
has reduced the time required to complete the
FAFSA by two-thirds, to about 20 minutes, by revamping
the online form for all families so they
can skip questions that are not relevant to them