Along with his 2011 budget proposal, President Obama revealed his agenda for higher education.

Many of the objectives laid out in his agenda are not new. Most have been key components of his budget proposals since his inauguration in 2008. The focus continues to remain on efforts to assist college students and their families in meeting the costs of higher education.

Highlights

Make permanent the $2,500 American Opportunity Tax Credit. This tax credit applies to 100% of the first $2,000 of tuition and related college expenses, plus 25% of the next $2,000.

Require college students and higher education institutions to use the federal direct loan program to apply for student loans starting with the fall term.

Monthly payments made by college graduates to repay their student loans would be capped at 10% of their income. And any remaining loan balances would be forgiven after 20 years.

Pell Grants would be come a new federal entitlement program not subject to annual budget deliberations by Congress.

Increase the maximum Pell Grant from $5,350 in the current year to $5,710 in 2011.

In addition, the Administration continues to play an active leadership role through the Middle Class Task Force.

In January President Obama and Vice President Biden hosted a meeting of the Task Force. President Obama and Vice President Biden identified key investments for middle income families. Among these investments includes limiting students federal laon payments to 10% of their discretionary income.

Congress created the Income-Based Repayment (IBR) program in 2007. The Administration’s plan would improve the program by lowering the cap on federal student loan payments from 15% to 10% of discretionary income and forgiving any remaining debt after 20 years of payments, rather than the current 25 years.