PHOENIX, AZ--(MARKET WIRE)--Aug 29, 2008 -- With the general presidential election only months away, concerns over the availability of student loans and how families will cover their college costs continue to be at the forefront of young voters' minds, in the midst of a dragging economy where credit is tight, unemployment is up, and high gas and food prices continue to eat away at families' paychecks.

In this year's close race for the White House, with the candidates virtually even at the polls, presidential hopefuls Barack Obama and John McCain are in determined pursuit of every contested voter group, even vying for the support of a typically politically uninterested and non-voting demographic: America's young adults.

An estimated 44 million Americans between the ages of 18 and 29 will be eligible to vote in the upcoming election, according to Rock the Vote, an organization dedicated to engaging young people politically. Of those 44 million, 17 million are voting-age college students, a large percentage of whom have ranked college costs and worries about student loans and their ability to pay for their education as among their top concerns.

At the 2008 presidential primaries, 6.5 million voters under the age of 30 turned out to cast their vote.

"This primary season, the Millennials have gone to the polls in record numbers, showing they are an influential voting bloc in American politics," said Peter Levine, director of the Center for Information and Research on Civic Learning and Engagement (CIRCLE). "They realize what's at stake and the impact this election will have on their future and the future of our country."

With the young voters of Gen Y not only suddenly paying more attention to the political landscape than ever, but expressing their approval and disapproval at the polls with record-high turnouts, both McCain and Obama have made it a point to address issues of concern to college-age voters -- the affordability of a higher education, in particular. Worries persist among college students and their families about the stability of the of federal student loan program, as struggling lenders continue to suspend their issuing of federal student loans; the shrinking availability, in the ongoing credit crunch, of financial alternatives like home equity or private student loans; and yearly college tuition increases that have far outpaced inflation.

Both presidential candidates support increases in federal Pell grants, arguing for Pell grant award amounts that better keep up with the rising costs of college. As U.S. senators, McCain and Obama both voted in favor of the College Cost Reduction and Access Act last fall, which increased the maximum Pell grant award from $4,050 to $5,400.

While federal Pell grants target the neediest and lowest-income students, McCain and Obama have also attempted to address the needs of a college student population at large -- the 18 million students who enroll in college each year, and the 7 to 9 million who apply for federal financial aid.

Obama would like to see a scaling back of the Federal Family Education Loan Program (FFELP), which allows borrowers to take out their federal parent and student loans from a third-party private lender and is currently used by the majority of families who rely on federal college loans to help finance their children's college education.

Instead, Obama has thrown his support behind the Federal Direct Loan Program, through which parents and students obtain their federal college loans directly from the Department of Education. Obama contends that the Federal Direct Loan Program is a less costly option for both borrowers and taxpayers, since the government isn't required to pay subsidies to third-party lenders as in the FFEL program.

McCain, on the other hand, backs an expansion of the FFEL program.

Both McCain and Obama propose additional financial help for those students who participate in public service programs. McCain wants to expand the Teach for America program, which places college graduates in low-income school districts after an accelerated teacher-certification process.

Obama, for his part, has outlined a plan for a $4,000 education tax credit as part of his American Opportunity Tax Credit program. To qualify for the tax credit, a student enrolled at a public college or university must complete 100 hours of public service.

Two additional proposals round out Obama's higher education platform: a simplification of the Free Application for Federal Student Aid (FAFSA) and a community college partnership initiative.

In order to make it easier for families to apply for federal financial aid each year, Obama proposes replacing the current FAFSA -- a multipage form that requires the duplicate reporting to the Education Department of income and asset information, which also needs to be provided to the Internal Revenue Service come tax time -- with a simple check box on annual federal tax forms. This feature would allow the IRS to share the necessary tax information with the Department of Education and eliminate the need for families to fill out a separate application for federal student loans and grants.

Obama's community college plan involves creating more Associate of Arts degree programs for students in emerging industries and technical careers, and rewarding two-year schools that consistently transfer large numbers of students to four-year schools.

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