Budget Control Act of 2011
President Obama signed the Budget Control Act of 2011 into law on Aug. 2 to increase the nation's debt ceiling by $2.4 trillion. The law impacted student aid by:
- Eliminating the in-school loan interest subsidy for graduate and professional students
- Providing $17 billion for Pell Grants for fiscal years (FY) 2012 and 2013
- Eliminating Direct Loan repayment incentives
The law also required Congress to convene a 12-member, bipartisan "Super Committee" to develop legislation to reduce the federal deficit by at least $1.2 trillion, but the group failed to meet this requirement triggering automatic, across-the-board cuts in 2013. Pell Grants would be exempt from these cuts, but other student aid programs would be impacted.
- Deficit Committee Dismantles Triggering Automatic Cuts in FY 2013
- The Congressional deficit reduction "super committee" announced yesterday that they are unable to agree on how to reduce the federal deficit by $1.2 trillion over the next decade. The committee was charged with creating $1.2 trillion in budget savings by midnight on Nov. 23. Failure to develop a deficit reduction plan...
- Impact of Budget Control Act Across-the-Board Reductions
- The National Education Association (NEA) estimates how federal education funding would be impacted by the 7.8 percent cut mandated by the Budget Control Act if Congress is unable to enact $1.2 trillion in budget savings by Jan. 15, 2012. The Pell Grant program is exempt from these cuts, but other programs face multi-m...
- President's Debt Plan Would Maintain Pell Grant Maximum Over 10 Years
- President Obama's plan to reduce the deficit by increasing taxes on the wealthy and cutting entitlement spending went to the Joint Select Committee on Deficit Reduction, or the super committee, Monday. The plan includes $3 trillion in deficit reduction recommendations, twice as much as the super committee is tasked wi...
- Congressional Leaders Select Members of Deficit Reduction Committee
- Congressional leadership has chosen the 12 members that will comprise the bipartisan Super Committee -— a group tasked with developing legislation to create at least $1.5 trillion in future deficit reduction by Thanksgiving. The Super Committee is mandated by the Budget Control Act of 2011 and could have a direct imp...
- Debt Ceiling Law Provides $17 Billion for Pell and Ends Grad Student Loan Interest Subsidy
- After months of intense deficit reduction negotiations, both chambers of Congress passed the Budget Control Act of 2011 just hours before the Aug. 2 debt ceiling deadline. The House passed the bill Monday with a 269-to-161 vote, and the Senate voted 74-26 today to pass the $2.4 trillion debt-ceiling bill. President Ob...