President Barack Obama’s goals of more college financial aid and an end to high school “dropout factories” will significantly increase opportunities for minority students, Secretary of Education Arne Duncan told Congress on Wednesday.

In his first Capitol Hill appearance to outline the administration’s agenda, Duncan told members of the House Education and Labor Committee that proposed new investments in Pell Grants, campus-based Perkins Loans and work-study will help low-income students attend college. “We have to make college more affordable,” he said.

Another key Obama goal is that the U.S. lead the world in the proportion of college graduates by 2020. To support that aim, Duncan said, the administration is proposing an additional $17 billion to raise the maximum Pell Grant while work-study would receive an extra $200 million. Perkins Loans would increase from $1 billion to $6 billion.

While the message drew a warm reception on Capitol Hill, members raised some additional issues.

Rep. Rubén Hinojosa, D-Texas, chair of the House postsecondary education subcommittee, reminded Duncan of the major role played by minority-serving colleges and universities. While accounting for less than one-third of all postsecondary institutions, they enroll more than half of the minority students in U.S. higher education, he said.

Some MSI organizations have concerns about the 2010 Obama education budget. Despite its financial aid provisions, the budget would end the large short-term funding increases for these colleges that were authorized by Congress for 2008 and 2009.

While not specifically addressing the MSI funding issue, Duncan said low-income students and students of color stand to benefit from major elements of the Obama agenda such as the large increases for Pell and K-12 education as well as a new program of college completion grants.

“If we can put money in there year after year, students will know the funding will be there for them to attend college,” the secretary said.