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House passes significant relief for college students
Brittani McNeill
Issue date: 2/5/09 Section: News
College students and families across the country will benefit from recent legislation passed by the U.S. House, providing significant increases in college aid. The aid is part of The American Recovery and Reinvestment Act, President Barack Obama's economic recovery plan, which passed the House by a vote of 244 to 188 on Jan. 28. Intended to stimulate the economy, the bill will increase the Pell Grant by $500, boosting it to its highest amount ever, and create a new tuition tax credit for families.
The legislation increasing financial aid was passed to provide immediate relief for college students. The maximum Pell Grant award has been increased to $5,350 for the 2009-2010 school year and will increase to $5,550 for the 2010-2011 school year. That makes a total increase of $1,500 - or 37 percent - since January of 2007. About 7 million students will benefit from this increase.
The availability of Stafford loans will also increase. The annual loan limit on federal Stafford Loans will increase by $2,000 and the aggregate total will increase by $8,000. This will reduce students' dependency on private loans. Federal loans carry low, fixed interest rates and are available for all eligible students. They are not as difficult to obtain or as costly as private loans.
Sophomore music major, Nathaniel Eure, believes he will benefit from the increase.
"I think it's a good thing," said Eure. "Being that I receive a Pell Grant, every little bit helps."
The bill establishes a new, partially refundable "American Opportunity $2,500 college tuition tax credit." According to the White House Web site, the tax credit will cover two-thirds of the cost of tuition at the average public college or university, and will make community college completely free for most students. Recipients of the credit will be required to conduct 100 hours of community service.
Work-study availability will also increase as a result of the new legislation. The bill provides $490 million to create jobs for an additional 200,000 students. These students will be paid to work in a field related to their major or community service.
The legislation increasing financial aid was passed to provide immediate relief for college students. The maximum Pell Grant award has been increased to $5,350 for the 2009-2010 school year and will increase to $5,550 for the 2010-2011 school year. That makes a total increase of $1,500 - or 37 percent - since January of 2007. About 7 million students will benefit from this increase.
The availability of Stafford loans will also increase. The annual loan limit on federal Stafford Loans will increase by $2,000 and the aggregate total will increase by $8,000. This will reduce students' dependency on private loans. Federal loans carry low, fixed interest rates and are available for all eligible students. They are not as difficult to obtain or as costly as private loans.
Sophomore music major, Nathaniel Eure, believes he will benefit from the increase.
"I think it's a good thing," said Eure. "Being that I receive a Pell Grant, every little bit helps."
The bill establishes a new, partially refundable "American Opportunity $2,500 college tuition tax credit." According to the White House Web site, the tax credit will cover two-thirds of the cost of tuition at the average public college or university, and will make community college completely free for most students. Recipients of the credit will be required to conduct 100 hours of community service.
Work-study availability will also increase as a result of the new legislation. The bill provides $490 million to create jobs for an additional 200,000 students. These students will be paid to work in a field related to their major or community service.
Viewing Comments 1 - 2 of 3
JT
posted 2/05/09 @ 4:35 PM EST
This bill has passed the House but it has not passed in the Senate and there is SIGNIFICANT opposition to the portions that would increase student aid among Senate republicans. (Continued…)
ecu
posted 2/07/09 @ 4:38 PM EST
You should probably read the whole article.
"All of these plans are part of a stimulus package that is receiving opposition from some Republican leaders, who say that there is too much spending. (Continued…)
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