POP CULTURE: PRESIDENT OBAMA TO PUMP $2 BILLION INTO COMMUNITY COLLEGES NATIONWIDE

GOOD NEWS FOR HIGH SCHOOL GRADS, AMBITIOUS WORKERS, THOSE LOOKING TO SHIFT CAREERS, & ANYONE LOOKING TO FURTHER THEIR EDUCATION. PRESIDENT OBAMA HAS UNVEILED A NEW PLAN TO FUND COMMUNITY COLLEGES OVER THE NEXT 10 YEARS. READ BELOW FOR DETAILS, AND TAKE YA A$$E$ TO STAPLES & GRAB SOME SCHOOL SUPPLIES. CHEERS, & NOW IT’S TIME TO LEARN SOMETHING. TAKE FULL ADVANTAGE

the Los Angeles Times

Obama unveils plan to invest in community colleges

The president says he intends to inject $12 billion into the nation's two-year schools over the next 10 years to help struggling workers prepare for new careers.

By Peter Nicholas

Reporting from Warren, Mich. — With unemployment continuing to climb, President Obama on Tuesday unveiled a plan to pump $12 billion into the nation's community colleges over the next 10 years to help struggling workers prepare for new careers, saying a better-educated workforce was crucial to long-term prosperity.

"Time and again, when we have placed our bet for the future on education, we have prospered as a result -- by tapping the incredible innovative and generative potential of a skilled American workforce," Obama said.

In his appearance here at Macomb Community College and earlier in the day in Washington, Obama sought to draw a direct connection between recovery from the economic crisis and a broad array of administration initiatives, including education, the stimulus package and overhauling the healthcare system.

Before flying to Michigan, Obama acknowledged that unemployment might "tick up for several months," but he said his prescriptions, taken together, offered the best hope for creating jobs.

And here, in a state where the jobless rate tops 14% compared with the national average of 9.5%, the president pointed to the healthcare debate raging in Congress and said stabilizing medical costs was crucial to restoring prosperity.

"Now is the time to build a firmer, stronger foundation for growth that will not only withstand future economic storms, but that will help us thrive," he said on the Macomb campus. "To build that foundation, we have to slow the growth of healthcare costs that are driving us into debt."

He took a barely veiled shot at Republicans, who were in power when the recession began but who have relentlessly attacked his recovery plans.

"I love these folks who helped get us in this mess and then suddenly say, well, this is Obama's economy. That's fine. Give it to me," the president said. "My job is to solve problems, not to stand on the sidelines and harp and gripe."

Obama added: "The hard truth is that some of the jobs that have been lost in the auto industry and elsewhere won't be coming back. They are casualties of a changing economy."

He argued that community colleges could play an important role in helping displaced workers build new careers, but that they needed more resources at a time when state and local budget problems could lead to capped enrollments and fewer course offerings.

Obama's education plan would provide funds for new construction, online education and competitive grants.

About 6 million people are enrolled in community colleges in the U.S., but nearly half fail to complete degree and certificate programs, according to government figures.

The administration seeks to boost the number of graduates by 5 million over the next decade.

Obama, apparently mindful of polls showing many Americans are worried about the steep rise in government spending to combat the recession, noted that the school aid "isn't adding to the deficit."

Rather, he said, the money will come from ending subsidies to banks and private student loan companies.

Obama's appearance here came as Republicans pounded the argument that his economic policies were faltering. Rep. Dave Camp (R-Mich.) held a news conference Tuesday timed with the president's visit to criticize his performance.

"Look, the stimulus bill hasn't worked, and it was sold as something that had to be done immediately, that would create jobs immediately, that it would have an immediate effect," Camp said.

Fighting back, the Democratic National Committee alerted reporters to a news release issued by the congressman's office in April touting a $12.7-million grant for a local airport -- money that was part of the stimulus program. In the release, Camp said the project would "stimulate the area's economy, help create new long-term job growth for the region and improve the airport experience for area travelers."

After leaving Michigan, Obama flew to St. Louis to throw out the first pitch at Major League Baseball's All-Star game.

POP CULTURE: NEW SOUTH AFRICAN PRESIDENT INAUGURATED

A BIG CONGRATS TO SOUTH AFRICA AS THEY RECENTLY INAUGURATED A NEW PRESIDENT, JACOB ZUMA.

JOHANNESBURG, South Africa (CNN) -- Jacob Zuma was inaugurated as president of South Africa in an exuberant ceremony Saturday filled with heads of state and former presidents.

Jacob Zuma has been sworn in as South Africa's president after the ANC won a landslide victory.

The large crowd at Union Buildings -- the president's residence -- in Pretoria broke out into song many times before and during the ceremony.

Zuma was elected president Wednesday by the parliament after his party won a landslide victory in nationwide parliamentary elections last month.

Zuma's African National Congress party won about 66 percent of the vote in the elections.

Zuma is an ethnic Zulu whose flamboyant style sits in contrast to more staid predecessors Nelson Mandela and Thabo Mbeki. Mandela was one of the guests at the event.

The ANC has been dogged by allegations of corruption and has been accused of failing to deliver services to the poor.

The country's prosecuting authority dropped fraud and corruption charges against Zuma two weeks before the elections, citing alleged political interference in the case.

A self-described "farm boy" known to don traditional garb -- including leopard skins and a spear -- at ceremonial events, Zuma, 67, would put a different face on the party than Mandela, the attorney imprisoned under segregationist apartheid rule, and the Western-educated Mbeki.

POP CULTURE: PRES. OBAMA PROPOSES BILLION DOLLAR BAILOUT TO BLACK FARMERS

MY UNCLE, PRES. BARACK OBAMA HAS AGAIN PUT A SMILE ACROSS MY FACE, AS ONLY THE LEADER OF THE FREE WORLD CAN. HE HAS JUST PROPOSED A 1.25 BILLION DOLLAR BAILOUT FOR THE CORNERSTONE OF THE GREAT MAJORITY OF THE VERY CROPS, I.E- FRUITS & VEGETABLES, THAT WE ENJOY TODAY, THE BLACK FARMERS. IT IS TRAGIC ENOUGH THAT THEIR LAND WAS STOLEN FROM THEM BY AN ORDER SIGNED BY THEN PRES. LINDEN B. JOHNSON, EVEN AFTER THEY WERE PROMISED 40 ACRES & A MULE. NO, APPARENTLY THAT WASN’T ENOUGH. IT WAS COMPOUNDED BY PREDATORY LENDING BY BANKS FOR FARMERS WHO WERE BARELY SCRAPING BY, WHEN ALL THEY WERE TRYING TO DO WAS SURVIVE, & PROVIDE FOR THEIR FAMILIES. SO, AS A RESULT, MANY FARMERS & THEIR FAMILIES, WHO LIVED ON THE FARMS WITH THEM, WERE FORCED TO GIVE UP THE RIGHTS TO THEIR LAND, & BE FOREVER IN SOMEONE’S DEBT. I COULD GO ON & ON ABOUT THIS, AND PERHAPS I WILL DEDICATE AN ENTIRE POST TO THIS VERY DEAR TOPIC TO ME, BUT IN THE MEANTIME, READ THIS ARTICLE, & DO YOURSELF A FAVOR & HEAD TO YOUR NEAREST BLACK HISTORY MUSEUM & VIEW EVERY EXHIBIT, AS A MATTER OF FACT, BUT SPECIFICALLY ANY EXHIBIT ON THE HISTORY OF THE BLACK FARMER.

Obama to propose $1.25B for black farmers

By BEN EVANS

WASHINGTON (AP) — President Barack Obama is proposing that the government provide $1.25 billion to settle discrimination claims by black farmers against the Agriculture Department.

The White House said the money would be included in the president's 2010 budget request to be unveiled Thursday.

Obama had taken criticism earlier this year from black farmers and lawmakers who said the federal government was neglecting the need for more money to fund claims under a decade-old class-action lawsuit against the government.

In a statement, Obama said the proposed settlement funds would "close this chapter" in the agency's history and allow it to move on.

"My hope is that the farmers and their families who were denied access to USDA loans and programs will be made whole and will have the chance to rebuild their lives and their businesses," he said.

John Boyd, who has spearheaded the litigation as head of the National Black Farmers Association and has been particularly critical of Obama recently, called the proposal a "step in the right direction."

But he said more money would be needed.

"We think this is a good step in the negotiating process. We're glad to know this issue is on the president's radar screen and we commend him for taking this step," he said. But "we need to make sure that none of the black farmers are left out."

At issue is the class-action Pigford lawsuit, named after Timothy Pigford, a black farmer from North Carolina who was among the original plaintiffs. Thousands of farmers sued USDA claiming they had for years been denied government loans and other assistance that routinely went to whites. The government settled in 1999 and has paid out nearly $1 billion in damages on almost 16,000 claims.

Since then, other farmers have pushed to reopen the case because they missed deadlines for filing. Many said they didn't know that damages were available.

Last year, Congress passed a proposal sponsored by then-Sen. Obama and others to give more farmers a chance at a settlement. But the measure included a budget of only $100 million — far short of what is likely needed. With an estimated 65,000 additional claims, some estimate the case could cost the government another $2 billion or $3 billion.

While Obama's proposal represents a marked shift from the Bush administration, which had fought paying new claims, it was unclear how the plan might be received on Capitol Hill. Many lawmakers think the payments should not be capped and that the government should pay however much it costs to resolve successful claims.

Earlier this week, Sens. Charles Grassley, R-Iowa, and Kay Hagan, D-N.C., introduced legislation that would allow access to an unlimited judgment fund at the Department of Treasury to pay successful claims

"I don't know other fields of litigation where there's a limit on the payments," Rep. G.K. Butterfield, D-N.C., said Wednesday, speaking before the White House announced the proposal.

Most claimants in the original case opted to seek expedited payments that required a relatively low burden of proof. The payments were $50,000 plus $12,500 in tax breaks.

Copyright © 2009 The Associated Press. All rights reserv

I WANT EVERY COLLEGE STUDENT, OR PROSPECTIVE COLLEGE STUDENT (WE SHOULD ALL BE ONE OF THE TWO) TO CHECK OUT THIS ARTICLE OUTLINING PRES. OBAMA’S NEW PROPOSAL FOR ALLOCATION OF FUTURE COLLEGE FINANCIAL AID. UNDERSTAND THAT MY STATEMENT ABOUT EVERYONE BEING ONE OF THE TWO DIRECTLY CORRELATES TO HIS NEW PLAN, IF IT IS IMPLEMENTED. I AM IN NO WAY JUDGING ANYONE WHO ISN’T IN COLLEGE, PLANNING TO GO TO COLLEGE, OR HAVE ALREADY GONE TO COLLEGE. CHECK OUT THE ARTICLE & LEAVE ME YOUR THOUGHTS.

Proposals would transform college aid

Proposal sees Pell Grants as entitlement akin to Medicare, Social Security

By Shailagh Murray

The Washington Post

WASHINGTON - President Obama's health-care goals may be garnering attention, but his higher-education proposals are no less ambitious.

If adopted, they could transform the financial aid landscape for millions of students while expanding federal authority to a degree that even Democrats concede is controversial.

At stake is a plan to expand the Pell Grant program, making it an entitlement akin to Medicare and Social Security. Key to the effort is a consolidation of student lending that would give the U.S. Department of Education a near monopoly over the practice -- a proposal that has mobilized the private loan industry, which lent $55.3 billion to 6.4 million students in the 2007-2008 school year.

Obama outlined his initiatives, which also include incentives for colleges to cut costs and to raise graduation rates, in the fiscal 2010 budget that Congress approved Wednesday, and Democratic leaders said they hope to make them law by October.

The aim is to improve access to post-secondary school for those who need it most: lower-income students for whom college or vocational training can be the decisive factor in their economic future. The president has said he wants the United States to lead the world by 2010 in the proportion of college graduates, a position the country had long held; it now ranks seventh for the 25 to 34 age group. He has also called for every American to attend a post-secondary institution.

Neither goal will be met if students can't afford the cost.

The administration's plans are "the most fundamental rewriting of federal student aid policy in 35 years," said Terry Hartle, senior vice president of the American Council on Education. "These are big changes. They are painted with a broad brush. . . . It's easy for this to be overshadowed by health-care proposals, but for many families, these discussions will be equally important."

Status quo unsustainable
Even critics of the plan say the status quo is unsustainable.

Students are amassing debt on a scale that approximates a home mortgage. The economic downturn has meant rising rates for defaults on loans, as well as for students dropping out. Private schools face shrinking endowments, and public universities face state budget cuts.

The tuition crisis has built over many years, however, and until recently Congress did little to address it. The maximum Pell Grant award was frozen at $4,050 from 2003 through 2007. When Democrats came to power, they laid the groundwork for many of the changes on the table, including raising Pell Grants to the current amount of $4,731. They also began to curb federally subsidized private loans.

But Obama would go much further. He wants to terminate the private Federal Family Education Loan program, the primary source of student loans. Advocates say the move is a formality: The government already effectively controls the program by guaranteeing the loans, paying a special allowance to lenders, and in recent months, buying back loans by the billions from struggling firms.

Shifting all lending authority to the government through its Direct Loan program would save $94 billion over 10 years, according to the Congressional Budget Office. Obama would use that windfall to expand the Pell Grant program, created in 1965 to cover most tuition costs for low-income students.

Creating another mandatory spending program during a recession, with a record high federal deficit, leaves many lawmakers uneasy.

Rep. Paul D. Ryan (Wis.), the senior Republican on the House Budget Committee, decried Obama's Pell Grant proposal as "an autopilot entitlement immune from congressional oversight at precisely the time when we should be reforming existing entitlements."

Revamping the Perkins loan
Obama also is seeking to overhaul federal Perkins loans, administered by schools to bridge gaps between other loans, grants and scholarships. The revamped Perkins program would provide $6 billion in loans a year, compared with the current level of $1 billion, and participation would be expanded beyond the current 1,800 institutions to all 4,400 colleges and universities. An additional 2.7 million students could receive the loans.

In a potentially significant shift, the administration has suggested it wants to change the distribution formula for Perkins loans, to give priority to needier students and to reward schools that control costs.

The private lending industry is fighting to preserve its role, but Obama asserted last month that he saw the choice as stark.

"In the end, this is not about growing the size of government or relying on the free market -- because it's not a free market when we have a student loan system that's rigged to reward private lenders without any risk."

Industry officials contend that private loans provide stronger default protections and better serve smaller schools, and some institutions have suggested that they may be content to play a more limited role. Industry officials are urging lawmakers to convene a summit of industry leaders to search for middle ground. But they also acknowledge that the prospect of capturing $94 billion and directing it to Pell Grant assistance could prove hard for Congress to resist.

"The only reason they're doing this is the government can make a lot of money," said Kevin Bruns, executive director of the trade group America's Student Loan Providers. "Private-sector lending built this entire industry, and now the federal government has piggybacked off of it."

Lack of strong resistance
White House officials, along with veterans of financial aid debates, have been surprised by the lack of strong resistance to the Obama plan so far, even among Republicans.

Rep. George Miller (D-Calif.), House education committee chairman, said the recent credit market turmoil "pretty much makes the case" that private lending is an unstable source of college aid. But he said lawmakers from both parties are bombarded with complaints about college costs, and they know something must change.

"It's a very significant amount of savings and will be very beneficial to families," Miller said.

The most vocal naysayer is Sen. Ben Nelson (D-Neb.), who voted against the budget in part because of the student loan proposal. Nelson's state is home to Nelnet, a Lincoln-based corporate loan provider that employs 1,000 people and that has contributed generously to his political campaigns.

"It's not just thinking about your state," he said. "I have a fundamental difference in opinion thinking that all student aid ought to come from the government."

But other Democrats with large private lending operations in their states, including Rep. Allen Boyd of Florida and Sen. Robert P. Casey of Pennsylvania, supported the 2010 budget, with the student loan reforms intact.

As the legislation advances, Democratic lawmakers are anticipating a far more forceful opposition. "The lobbyists are very active on this one," Miller said.

Rep. Timothy H. Bishop (D-N.Y.), a former college provost and a member of Miller's committee, said the lending proposal "goes to the very heart of one's perception of what is the role of the federal government. And I think there will be a significant fight over it."

But he added, "If you just look at it from the practical aspects of how the program functions, it's really hard to justify. Why do we need a middleman?"

© 2009 The Washington Post Company

URL: http://www.msnbc.msn.com/id/30556276/