President Barack Obama’s recent announcement regarding financial aid assistance to the nation’s displaced workforce is already making an impact on Angelina College and its prospective students – specifically those displaced employees seeking education and retraining.
Previously, students applying for financial aid such as Pell Grants were required to submit all acquired income, including any unemployment benefits received in a given year. Those receiving unemployment compensation had to prove they were actively seeking employment elsewhere; enrolling in further education or training meant a loss of unemployment benefits, and education grant qualifications were based on the employee’s previous year’s income.
That won’t be the case any longer. The president’s plan, according to a CNN on-line article, states “the Department of Education will send colleges legal guidance, encouraging them to increase financial aid packages for the unemployed so they can enroll in educational and training programs while keeping their unemployment benefits.”
The plan also stipulates that “the unemployed person would not lose any unemployment benefits and the maximum Pell grant would be increased in July by $500 to $5,350.”
Sue Jones, Director of Student Financial Aid at Angelina College, explained how the announcement would benefit those residing in East Texas.
“We can always re-work a person’s FAFSA (Free Application for Federal Student Aid) if his or her current economic situation isn't the same as it was for the prior tax year they used for the FAFSA,” Jones said, “However, the Department of Education is allowing us to go even further this year. We can report the income of a laid-off worker as 0, without showing their unemployment benefits or any income he or she earned this year prior to the layoff.
“It is making a huge difference for people such as the displaced Citation employees.”
Jones said AC is also re-working financial aid packages for any Lufkin Industries or other employees who have faced layoffs. She said the state of Texas is contributing more money to assist those “non-traditional” students, especially those who are in the process of re-training in new career fields.
The CNN article quoted Obama as stating, “In a 21st-century economy where the most valuable skill you can sell is your knowledge, education is the single best bet we can make.”
The president’s address followed the recent government announcement the nation’s unemployment rate rose to an all-time high in April, climbing from 8.5 percent in March to 8.9 percent in April.