Obama announces education help for unemployed (CNN)

WASHINGTON (CNN) -- President Obama announced new steps to help unemployed Americans on Friday, targeting people who are out of work and want to go back to school.

The president outlined a plan under which the Department of Education will send colleges legal guidance, encouraging them to increase financial aid packages for the unemployed so they can enroll in educational and training programs while keeping their unemployment benefits.

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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more: http://www.cnn.com/2009/POLITICS/05/08/obama.unemployment/index.html