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Saturday, May 9, 2009

Changes will affect unemployment checks, education


WASHINGTON — President Barack Obama wants unemployment insurance to become a stepping stone for future work by making it easier to enroll in school or job training.

Whether he succeeds will depend on the willingness of states and colleges to change the rules.

People who have been laid off and want to go back to school often have to give up their monthly unemployment checks.

If the unemployed people decide to return to school, they often don’t qualify for federal aid because eligibility is based upon the previous year’s income.

Under rule changes Obama outlined Friday, the Labor Department will ask states to make exceptions during economic downturns so that the unemployed can keep their benefits if they go to community college or pursue other education or training.

State governments, not Washington, decide who is eligible for unemployment, and they generally require anyone collecting assistance to be actively looking for work. That can complicate plans to attend school.

The Education Department, meanwhile, will encourage colleges to factor in the financial situation of an unemployed person applying for Pell Grants or other education and job training aid. Starting in July, the maximum Pell Grant, which helps low-income students afford college, will receive a $500 boost to $5,350.

by the associated press

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