President Obama announced a new program today, designed to help unemployed Americans who want to go back to school. The president explained:
In a 21st century economy where the most valuable skill you can sell is your knowledge, education is the single best bet we can make -- not just for our individual success, but for the success of the nation as a whole. The average college graduate earns 80 percent more than those who stopped after high school. So if we want to help people not only get back on their feet today but prosper tomorrow, we need to take a rigorous new approach to higher education and technical training. And that starts by changing senseless rules that discourage displaced workers from getting the education and training they need to find and fill the jobs of the future. So today I'm announcing new steps we are taking to do exactly that -- to give people across America who have lost their jobs the chance to go back to school today to get retrained for the jobs and industries of tomorrow.
Under President Obama's plan, colleges will be encouraged to increase financial aid packages for the unemployed so they can enroll in educational and training programs while keeping their unemployment benefits. CNN reported:
Under Obama's initiative, colleges would consider a person's current financial situation to make it possible for them to receive Pell grants, which are available for low-income students. The unemployed person would not lose any unemployment benefits and the maximum Pell grant would be increased in July by $500 to $5,350.Current unemployment rules create a Catch-22: In most cases, if you are receiving unemployment compensation, you have to be actively looking for a job.If you want to get more education or training, you have to give up unemployment benefits. But if you return to school, you don't qualify for federal education grants since, in most cases, your qualification is based on the previous year's income.
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