President Obama to College Journalists: "What I Want to Do is Just to Go Speak to Young People Directly"

Posted by White House

Right around noon today the President took some time for a conference call with college and university student-journalists. He explained that part of the reason he was reaching out was to keep them engaged with their democracy:

And what I want to do is just to go speak to young people directly and remind them of what I said during the campaign, which was change is always hard in this country. It doesn’t happen overnight. You take two steps forward, you take one step back. This is a big, complicated democracy. It’s contentious. It’s not always fun and games. A lot of times, to bring about big changes like, for example, in our energy policy, you’re taking on a lot of special interests -- the oil companies and utilities. And some of them may not want to see the kinds of changes that would lead to a strong green economy.

And the point is, though, you can’t sit it out. You can’t suddenly just check in once every 10 years or so, on an exciting presidential election, and then not pay attention…

It’s a tough time and tough economy for those who may be coming out of college and into the job market for the first time - an issue the President took on during the call:

MR. DAILEDA: Hi, Mr. President. How are you today?

THE PRESIDENT: I’m good, Colin. Where are you calling from?

MR. DAILEDA: I’m calling from southwest Virginia, Radford University.

THE PRESIDENT: Well, tell everybody I said hi there.

MR. DAILEDA: I’ll do that. Okay, so I’ve heard some of my professors call our generation the “lost generation” because we’re going to get out of school with a ton of debt due to student loans and not be able to pay them off really because, well, we don't -- not going to get a steady job -- it’s not that likely to begin with -- and the economy is in the shape it is currently in. So I guess my question is, do you think there’s some truth to that? And do you think it will take a longer time than usual for our generation to get on our feet?

And I guess -- I mean, you talked about in your health care plan and how we’re able to stay on our parents’ plans now until we’re 26 and that’s going to help us deal with kind of money issues and insurance. But what else are you -- is your administration doing to kind of I guess help us stand up when we get out of college?

THE PRESIDENT: A couple points I’d make. First of all, I think your generation is going to be just fine. I mean, we’ve gone through the worst financial crisis since the Great Depression, and so things are real tough for young people right now. But having said that, if you are getting a college degree, if you’ve got skills in math and science or good, sound communication skills, there are still jobs out there even in a tough environment. And nine out of 10 people who are looking for work can still find work.

The key is for us to keep on improving the economy, and that’s going to be my number one priority over the next several years. If the economy is growing, if we’re investing in small businesses so they can open their doors and hire more workers, if we’re helping large businesses in terms of plants and equipment -- a lot of the initiatives that I’ve put in place already -- if we’re building infrastructure -- not just roads and bridges but also broadband lines -- if we’re investing in clean energy -- all those things are going to open up new opportunities for young people with skills and talent for the future.

So don’t let anybody tell you that somehow your dreams are going to be constrained going forward. You’re going through a slightly tougher period. But if you think about it, what we called “the greatest generation,” my grandparents’ generation, they had a situation where unemployment reached 30 percent and they ended up essentially building the entire American middle class to what it was and making this the most powerful economy in the world. So right now we’re going through a tough time but I have no doubt that you guys are going to be successful.

Now in the meantime, some specific things that we can do to help, I already mentioned two of them. One was you being able to stay on your parents’ health care until you’re 26. That gives you a little bit of a cushion in the initial jobs that you’re getting coming out of college. The second thing that I’ve already mentioned is that starting in 2014, we’re going to be in a situation where young people can cap their debt at 10 percent of their salary, regardless of what that salary is.

And if you go into something like teaching, for example, or you’re a police officer or firefighter, public service jobs of one sort or another, then that's forgiven after 10 years. That's obviously going to be a big boost that would have helped me out a lot, because I ended up having 10 years worth of loans I had to pay down after I got out of law school.

In the meantime, what we’re also doing -- and this is already in place, this doesn’t wait till 2014 -- we have increased the Pell Grant. We’ve made it available to more people. We’ve made it more reliable. And so hopefully students who are studying now are going to be able to keep their student loan -- their debt lower than I did when I went to school or Michelle did when we went to school. That's obviously going to help. That's a second thing.

A third thing we’re trying to do is to make sure that we’re giving young people a better sense of what jobs are out there in the future so that people end up gravitating towards the skills and the degrees that they need to get employed. That's especially important for young people who are going through a community college system, because a lot of times folks are going through programs that -- where they’re racking up debt, they’re getting college credits, but these aren’t ultimately giving them the kinds of skills that they need to get a job.

And so all those things can be helpful in moving us forward. But the single most important thing I’ve got to do is make sure that we get this economy back on track, and that's why I’m so focused on things like a bill I’m going to be signing today that provides small businesses further incentive to invest and gives them tax breaks and financing, because they’re huge drivers of job creation over the long term.

President Obama on Higher Education in Austin: "We Are Not Playing for Second Place"

Posted by White House

Speaking at the University of Texas at Austin, the President rattled off a couple campaign promises fulfilled -- like ending the War in Iraq and passing health reform – then turned to the economy:

And I said we need an economy that puts Americans back to work, an economy that’s built around three simple words -- Made in America. Because we are not playing for second place. We are the United States of America, and like the Texas Longhorns, you play for first -- we play for first.

From there he honed in even further to his primary focus for the day – education:

I’ve called for doubling our exports within the next five years, so that we're not just buying from other countries, I want us to sell to other countries. We've talked about doubling our nation’s capacity to generate renewable energy by 2012, because I'm actually convinced that if we control the clean energy future, then our economic future will be bright -- building solar panels and wind turbines and biodiesel. And I want us to produce 8 million more college graduates by 2020, because America has to have the highest share of graduates compared to every other nation.

But, Texas, I want you to know we have been slipping. In a single generation, we’ve fallen from first place to 12th place in college graduation rates for young adults. Think about that. In one generation we went from number one to number 12.

Now, that’s unacceptable, but it’s not irreversible. We can retake the lead. If we’re serious about making sure America’s workers -- and America itself -- succeeds in the 21st century, the single most important step we can take is make -- is to make sure that every one of our young people -- here in Austin, here in Texas, here in the United States of America -- has the best education that the world has to offer. That’s the number one thing we can do.

Now, when I talk about education, people say, well, you know what, right now we’re going through this tough time. We’ve emerged from the worst recession since the Great Depression. So, Mr. President, you should only focus on jobs, on economic issues. And what I’ve tried to explain to people -- I said this at the National Urban League the other week -- education is an economic issue. Education is the economic issue of our time.

It’s an economic issue when the unemployment rate for folks who’ve never gone to college is almost double what it is for those who have gone to college. Education is an economic issue when nearly eight in 10 new jobs will require workforce training or a higher education by the end of this decade. Education is an economic issue when we know beyond a shadow of a doubt that countries that out-educate us today, they will out-compete us tomorrow.

He touched on his innovative efforts to challenge states to live up to their potential in K-12 education through Race to the Top, then spoke passionately about higher education:

And this isn’t some abstract policy for me. I understand this personally, because Michelle and I, we had big loans to pay off when we graduated. I remember what that felt like, especially early in your career where you don’t make much money and you’re sending all those checks to all those companies. And that’s why I'm absolutely committed to making sure that here in America, nobody is denied a college education, nobody is denied a chance to pursue their dreams, nobody is denied a chance to make the most of their lives just because they can’t afford it. We are a better country than that, and we need to act like we’re a better country than that.

He spoke about the landmark reforms of student loans passed earlier this year that will cut out big banks as middlemen and redirect those resources to our students:

So as a result, instead of handing over $60 billion in subsidies to big banks and financial institutions over the next decade, we’re redirecting that money to you, to make college more affordable for nearly 8 million students and families across this country. Eight million students will get more help from financial aid because of these changes.

He spoke about Pell Grants, which so many students have come to rely on:

We’re tripling how much we’re investing in the largest college tax credit for our middle-class families. And thanks to Austin’s own Lloyd Doggett that tax credit is now worth $2,500 a year for two years of college. And we want to make it permanent so it’s worth $10,000 over four years of college -- $10,000.

He spoke about community colleges and HBCUs:

So that’s why we’re upgrading our community colleges, by tying the skills taught in our classrooms to the needs of local businesses in the growth sectors of our economy. And we’re giving companies an assurance that the workers they hire will be up to the job. We’re giving students the best chance to succeed. We’re also that way giving America the best chance to thrive and to prosper. And that’s why we’re also reinvesting in our HBCUs and Hispanic Serving Institutions like Huston-Tillotson and St. Edwards.

And finally, he spoke about lifting graduation rates:

Over a third of America’s college students and over half of our minority students don’t earn a degree, even after six years. So we don’t just need to open the doors of college to more Americans; we need to make sure they stick with it through graduation. That is critical.

Top 5 Things You Should Know Before Heading Back to College

Posted by White House

Today President Obama is traveling to the University of Texas at Austin to discuss what the Administration is doing to meet his goal of having the highest proportion of college graduates by 2020. Thousands of college students will be heading back to school in the next few weeks, so here’s a list of the top five things you need to know before you head back to school:

1. Many students' wallets are going to be a little heavier. The President has invested more than $40 billion in Pell Grants and provided support to help these scholarships keep pace with inflation in the coming years. The great thing about Pell Grants is that they are free and clear – they don’t have to be paid back if your family qualifies. Since taking office, the President has helped grow the maximum Pell Grant scholarship by $800. This is real money that students and families can use to pay for tuition and fees.
2. If you don’t have a job after graduation lined up and are stressed about health insurance, don’t worry. If you’re under 26 years of age, may be already be able to get on a parent’s health insurance plan – and all plans will allow this in September.
3. Not ready for a 4 year institution? Community colleges are a great alternative, and they will receive an extra $2 billion over the next four years to invest in degree and training programs that will prepare you for the jobs of the future.
4. If you attend one of America’s 105 Historically Black Colleges and Universities (HBCUs) or 225 Hispanic Serving Institutions (HSIs), your school might get a cut of $2.55 billion in coming years. That means better courses, facilities, and programs for you.
5. Interested in pursuing a career in math or science? The Department of Energy, in partnership with the National Science Foundation, will dedicate $19 million in funds for its undergraduate and graduate fellowship, scholarship, and traineeship programs.

Click here for more information on President Obama's agenda for higher education.