By Fernando Alcantara
Western Sun managing editor
“Education is the best investment individuals can make in themselves,” is what Speaker of the House, Nancy Pelosi said after the passing of the Student Aid and Fiscal Responsibility Act last year. “It is the best investment a nation can make in their citizens.”
With that sentiment in mind and the recent signing of the Health Care and Education Reconciliation Act on March 30, the United States has put into motion President Obama’s goal of producing more college graduates by the year 2020.
To achieve that goal, several new changes to the student financial aid system will allow for more students to attend college with more direct loan funding, increased Pell Grant scholarships and easier methods of applying for federal student aid.
According to the Committee on Education and Labor’s website, http://www.edlabor.house.gov, the maximum Pell Grant award, money that you do not have to pay back, will be increased to $5,550 per student this year and to $5,975 in 2017.
In addition to more free money, those with student loans can now make affordable payments. Student loan payments can now be topped at 15 percent of your discretionary income and all loans will be forgiven after 25 years.
As far as student loans are concerned, federally subsidized private loans will be terminated as the government will provide direct lending to students that will provide lower interest rates as low as 3.4% for the 2011-2012 school year.
By providing direct lending, the government is expected to save $61 billion over the next 10 years that will be used to provide more student aid and fund more student programs and education.
Another benefit of the new bill is the ease of applying for these funds through the Free Application for Federal Student Aid (FAFSA). The website has been streamlined, eliminating the previous 100 questions and now has direct links to your tax information via the IRS.
The plan also requires colleges to disclose the costs of textbooks to help parents and students plan their tuition costs as well as additional costs of their education.
Community colleges nation-wide will benefit from the bill as well as $500 million has been appropriated for the use of providing more courses to more students thereby providing more high-quality education at lower costs.
For students who are focusing on a career in education, the government will award up to $4000 annually towards the student’s tuition to those who become teachers at a high-need school and remain in the profession a minimum of four years after graduation.
Whether or not these changes will go into effect smoothly remains to be seen. Financial Aid officers here at Golden West had no comment regarding the changes stating that the plan was still in its infancy as they await further instructions.
More information will be available at the Golden West College financial aid office in July.
