Early this week President Obama released his proposed budget for 2011. The proposed budget makes a strong statement about the importance of investing in higher education.

The 2011 fiscal year budget request seeks to increase discretionary education spending by $4.5 billion to $50.7 billion and implements many of the student aid changes proposed in the 2010 budget.

The budget:

– Makes Pell Grants an entitlement by funding it entirely with mandatory funds.

– Increases the maximum Pell award by $160 to $5,710 in 2011. After 2011, the maximum award would increase annually by the rate of inflation plus 1 percent.

– Eliminates the Federal Family Education Loan Program (FFELP) and originates all federal student loans through the Direct Loan Program.

– Expands and redesigns the Perkins Loan Program.

– Funds, over seven years, a College Access and Completion Fund to support innovative strategies to increase the number and percentage of students entering and completing college.

– Invests funds over 10 years for the American Graduation Initiative to invest in promising reforms to raise graduation rates.

– Expands over 10 years income-based repayment.

– Funds over 10 years the American Opportunity Tax Credit to make it permanent.

– Provides level funding for Federal Work-Study, Supplemental Educational Opporuntity Grants, the Federal TRIO Program, and GEAR UP.

– Eliminates funding for the Leveraging Educational Assistance Partnerships (LEAP).

– Eliminates funding for the Byrd Honors Scholarship.

– Allows for the expiration of the Academic Competitiveness Grant (ACG) and the National SMART Grant.

– Eliminates the Department of Labor’s Career Pathways Innovation Fund.

– Reduces the budget of the National Endowment for the Humanities.

– Increases funding for several key scientific research agencies for job creation purposes.

– Increases financial support for the AmeriCorps national service program.