New Bill Increases Financial Aid by $18 Billion
By Rebecca Miller
UniversityDecisions.com recently released an article discussing new proposed and enacted financial aid legislation. The article discussed the Notice of Proposed Rulemaking (NPRM) as well as the Income-based Repayment and the Loan Forgiveness programs and their roles in helping students attend college. Since that UniversityDecisions.com report, the House passed another new bill that will increase college enrollment. The new bill, passed June 30th, will increase financial aid over the next five years by about $18 billion, while also cutting federal subsidies to lenders, MarketWatch reported.
According to the website, "this bill is a remarkable step forward in our efforts to help every qualified student go to college," Rep. George Miller, D-Calif., Chairman of the Education and Labor Committee and author of the legislation said in a statement. "With this bill, we are saying that no one should be denied the opportunity to go to college simply because of the price."
Under the bill, which the Senate is expected to vote on this month, Pell Grant scholarships would increase by $500 and interest rates for need-based student loans would be cut by 3.4 percent, according to the news source.
The bill also proposes to increase federal loan limits; set repayment to no more than 15 percent of borrowers’ discretionary income; provide upfront undergraduate tuition assistance to students who commit to teaching in high-poverty areas or high-need subjects; offer loan forgiveness for public servants and invest $500 million in minority institutions.
Another piece of new financial aid legislation was enacted on June 30th as it was the last day banks and lenders were able to issue federally-guaranteed student loans. Now, all federal loans will be received by schools and then be made out to students.
As of July 1st interest rates were reduced on federal loans, making them cheaper and easier to get and repay. PLUS loan seeking parents will “now apply for a PLUS loan through their student's college, which will arrange for loans directly with the federal government,” The Chicago Tribune reported. These federal PLUS loans will offer a single fixed rate, payment deferment and free insurance. PLUS interest will have 8.8 percent APR, including fees. Private leaders charge about 9.4 percent.
Under the same legislation, students seeking Stafford loans will no longer have to go to the bank. Instead, they will simply complete a FAFSA and tell their school they need a loan. In addition, Stafford loan interest rates have dropped for those who qualify as needy. According to the Tribune, for the 2010 academic year, qualifying subsidized Stafford student loan candidates will have no interest while in school and 4.5 percent interest after graduation with a .5 percent upfront fee.
Students who cannot afford their tuition due to lack of scholarships and other aid are awarded governmental subsidized loans to help cover the cost of school. Other students, who attend school at least half time, can obtain unsubsidized Stafford loans for up to $12,500 a year, while not having to make payments nor accumulate the 6.8 percent interest while in school.
This latest pro-college legislation puts any kind of degree is within reach. Whether you’re seeking a degree in nursing, business or technology, these new programs make earning your degree more affordable and accessible.
Stay tuned to UniversityDecisions.com for more financial aid legislation updates and news.
UniversityDecisions.com recently released an article discussing new proposed and enacted financial aid legislation. The article discussed the Notice of Proposed Rulemaking (NPRM) as well as the Income-based Repayment and the Loan Forgiveness programs and their roles in helping students attend college. Since that UniversityDecisions.com report, the House passed another new bill that will increase college enrollment. The new bill, passed June 30th, will increase financial aid over the next five years by about $18 billion, while also cutting federal subsidies to lenders, MarketWatch reported.
According to the website, "this bill is a remarkable step forward in our efforts to help every qualified student go to college," Rep. George Miller, D-Calif., Chairman of the Education and Labor Committee and author of the legislation said in a statement. "With this bill, we are saying that no one should be denied the opportunity to go to college simply because of the price."
Under the bill, which the Senate is expected to vote on this month, Pell Grant scholarships would increase by $500 and interest rates for need-based student loans would be cut by 3.4 percent, according to the news source.
The bill also proposes to increase federal loan limits; set repayment to no more than 15 percent of borrowers’ discretionary income; provide upfront undergraduate tuition assistance to students who commit to teaching in high-poverty areas or high-need subjects; offer loan forgiveness for public servants and invest $500 million in minority institutions.
Another piece of new financial aid legislation was enacted on June 30th as it was the last day banks and lenders were able to issue federally-guaranteed student loans. Now, all federal loans will be received by schools and then be made out to students.
As of July 1st interest rates were reduced on federal loans, making them cheaper and easier to get and repay. PLUS loan seeking parents will “now apply for a PLUS loan through their student's college, which will arrange for loans directly with the federal government,” The Chicago Tribune reported. These federal PLUS loans will offer a single fixed rate, payment deferment and free insurance. PLUS interest will have 8.8 percent APR, including fees. Private leaders charge about 9.4 percent.
Under the same legislation, students seeking Stafford loans will no longer have to go to the bank. Instead, they will simply complete a FAFSA and tell their school they need a loan. In addition, Stafford loan interest rates have dropped for those who qualify as needy. According to the Tribune, for the 2010 academic year, qualifying subsidized Stafford student loan candidates will have no interest while in school and 4.5 percent interest after graduation with a .5 percent upfront fee.
Students who cannot afford their tuition due to lack of scholarships and other aid are awarded governmental subsidized loans to help cover the cost of school. Other students, who attend school at least half time, can obtain unsubsidized Stafford loans for up to $12,500 a year, while not having to make payments nor accumulate the 6.8 percent interest while in school.
This latest pro-college legislation puts any kind of degree is within reach. Whether you’re seeking a degree in nursing, business or technology, these new programs make earning your degree more affordable and accessible.
Stay tuned to UniversityDecisions.com for more financial aid legislation updates and news.
UniversityDecisions.com recently released an article discussing new proposed and enacted financial aid legislation. The article discussed the Notice of Proposed Rulemaking (NPRM) as well as the Income-based Repayment and the Loan Forgiveness programs and their roles in helping students attend college. Since that UniversityDecisions.com report, the House passed another new bill that will increase college enrollment. The new bill, passed June 30th, will increase financial aid over the next five years by about $18 billion, while also cutting federal subsidies to lenders, MarketWatch reported.
According to the website, "this bill is a remarkable step forward in our efforts to help every qualified student go to college," Rep. George Miller, D-Calif., Chairman of the Education and Labor Committee and author of the legislation said in a statement. "With this bill, we are saying that no one should be denied the opportunity to go to college simply because of the price."
Under the bill, which the Senate is expected to vote on this month, Pell Grant scholarships would increase by $500 and interest rates for need-based student loans would be cut by 3.4 percent, according to the news source.
The bill also proposes to increase federal loan limits; set repayment to no more than 15 percent of borrowers’ discretionary income; provide upfront undergraduate tuition assistance to students who commit to teaching in high-poverty areas or high-need subjects; offer loan forgiveness for public servants and invest $500 million in minority institutions.
Another piece of new financial aid legislation was enacted on June 30th as it was the last day banks and lenders were able to issue federally-guaranteed student loans. Now, all federal loans will be received by schools and then be made out to students.
As of July 1st interest rates were reduced on federal loans, making them cheaper and easier to get and repay. PLUS loan seeking parents will “now apply for a PLUS loan through their student's college, which will arrange for loans directly with the federal government,” The Chicago Tribune reported. These federal PLUS loans will offer a single fixed rate, payment deferment and free insurance. PLUS interest will have 8.8 percent APR, including fees. Private leaders charge about 9.4 percent.
Under the same legislation, students seeking Stafford loans will no longer have to go to the bank. Instead, they will simply complete a FAFSA and tell their school they need a loan. In addition, Stafford loan interest rates have dropped for those who qualify as needy. According to the Tribune, for the 2010 academic year, qualifying subsidized Stafford student loan candidates will have no interest while in school and 4.5 percent interest after graduation with a .5 percent upfront fee.
Students who cannot afford their tuition due to lack of scholarships and other aid are awarded governmental subsidized loans to help cover the cost of school. Other students, who attend school at least half time, can obtain unsubsidized Stafford loans for up to $12,500 a year, while not having to make payments nor accumulate the 6.8 percent interest while in school.
This latest pro-college legislation puts any kind of degree is within reach. Whether you’re seeking a degree in nursing, business or technology, these new programs make earning your degree more affordable and accessible.
Stay tuned to UniversityDecisions.com for more financial aid legislation updates and news.