The Middle Class Supports. Although a college education is increasingly a prerequisite for a middle-class standard of living, current and aspiring middle-class students and their families are struggling more than ever to afford college. A massive $87 billion subsidy to private companies that make student loans did little to promote affordability. It makes sense for the federal government to eliminate this waste by expanding its Direct Loan program, which is already serving as an effective lender for an increasing number of students as the credit crisis continues to threaten the market for private student loans.

Now the money can be redirected to genuinely help Americans afford college. Approximately $40 billion would increase the maximum Pell Grant, the most widely used college assistance program that helps lower-income students attend college. In recent years, the program has failed to keep pace with the rising cost of college: thirty years ago the maximum Pell Grant covered 77 percent of the cost of attending the average four-year public school, but today it covers only 35 percent. Increasing the maximum award would restore some of this lost purchasing power, providing more students from lower-income families with an opportunity to attend college. The bill’s provision for automatic Pell Grant increases helps ensure that the Pell Grant permanently maintains its value. Caps on interest rates and a reworked fixed interest-rate program will not only make college more affordable for all students, but will make obtaining and keeping a middle-class standard of living easier by reducing the growth of student loan debt, which now averages almost $23,000 for bachelor’s degree recipients, and reducing student loan defaults. An increased debt load can make it difficult for young graduates to make ends meet, much less begin saving or pursue careers in teaching and public service.

Funds for a variety of initiatives to increase access to early-childhood education and graduation rates, to modernize schools, and to improve community colleges will expand the opportunity for students to succeed at all levels of education.