COLLEGE FINANCIAL ASSISTANCE OVERHAUL-HOW IT AFFECTS YOU

Yes the recent passage of the new Healthcare Bill has us all wondering what next with the amount of responsibility all of us will undertake to pay of this huge commitment. As a part of that healthcare bill, Obama’s administration also included in there a measure regarding Pell Grants and the amount qualified individuals can receive in the future. This is due to the government stripping the loan responsibility away from a third-party. A third-party that controlled all student loans. Now the Government will handle this, thus saving a lot of money in the future. That money then is supposed to  be applied toward increasing the Pell Grant awards a few hundred dollars for each individuals.

The cut back on third parties working with student loans would be applied to other areas, that is supposed to directly help YOU get more free money for college. As long as you qualify. It will also make it easier for you to pay back any student loans you take out. I hate the Government taking over crap as much as the next person, but there are certain things that I believe can directly help a lot of people and this is probably the best thing.

I truly  believe that President Obama wants everyone to go to college, or get some sort of training/certification. This indeed provides all of you with more opportunities that are available. Because the job market is so tight right now, companies and business will be looking for the most qualified they can get for their money. But the government will try any effort to offer us the opportunities.

The Associated Press wrote this article and found on www.fastweb.com. It explains better about the plan for college tuition assistance through the new government take over and changes.

March 26, 2010
WASHINGTON (AP) — More needy college students will have access to bigger Pell Grants, and future borrowers of government loans will have an easier time repaying them, under a vast overhaul of higher education aid that Congress passed Thursday March 25  and sent to President Barack Obama.
The legislation, an Obama domestic priority overshadowed by his health care victory, represents the most sweeping rewrite of college assistance programs in four decades. It strips banks of their role as middlemen in federal student loans and puts the government in charge.
The House passed the measure 220-207 as part of an expedited bill that also fixed provisions in the new health care law. Earlier Thursday, the Senate passed the bill 56-43.
The switch to direct government loans will result in savings to boost Pell Grants and make it easier for some workers to repay their student loans. In addition, some borrowers could see lower interest rates and higher approval rates on student loans.
The legislation has a wide reach. About half of undergraduates receive federal student aid and about 8.5 million students are going to college with the help of Pell Grants.
Sen. Tom Harkin, D-Iowa, praised the bill as a victory for middle-class families.
“Now they’ll have the assurance that their kids will be able to afford to go to college and again, when they get out, they won’t be burdened with a huge debt,” Harkin said.
The changes do not go as far as Obama and House Democrats wanted. That is because ending fees for private lenders would save less money than they anticipated, according to budget scorekeepers. The bill is now expected to save $61 billion over 10 years.
As a result, the Pell Grant increase is modest and still doesn’t keep up with rising tuition costs. Advocates had sought bigger increases.
“The increases in the Pell Grant are better than nothing, but they are still quite anemic,” said analyst Mark Kantrowitz, publisher of the student assistance Web site FinAid.org.
Find the rest of the story here>

They also laid out the specifics of this bill, and what it could do to help all of you.

  • Pell Grants would rise from $5,550 for the coming school year to $5,975 by 2017. Lawmakers had initially hoped to reach a $6,900 cap.
  • More eligible students could get a full Pell Grant. Most grants go to students with family income below $20,000, but students with family income of up to $50,000 may also be eligible.
  • Some college graduates will have an easier time repaying loans. The government will essentially guarantee that workers in low-paying jobs will be able to reduce their payments. Current law caps monthly payments at 15 percent of these workers’ incomes; the new law will lower the cap to 10 percent.

There are also several things for you to consider outside of government financial aid:

This is a quick list of alternative methods for you to consider in financing your college education. These are steps I give every young prospective college student to consider and look into with regard to paying for college.

1. There’s a great article that you should read about the types of work you can do while in college. Certainly those of you attending a community college, vocational school, or taking classes part-time have the opportunity to work wherever you can find a job, even full-time. But for those of you with college as your primary source of income, you need to consider some sort of job you can get on or near campus. This gives you a few simple steps for working. Fastweb.com is source of this article.

2. Scholarships, scholarships, scholarships. That’s all I have to say about that. Well, except that you should APPLY, APPLY, APPLY! Apply for whatever you are qualified for, even if you think you don’t have a chance, apply anyway. I wrote a great article about different websites that are focused specifically on scholarships and scholarship search engines. I also wrote a great article about tips and great resources in finding scholarships.

3. Private loans, parent loans, government loans. Most financial aid offices will provide you with this info.

4. Savings, college savings plans, grandma and grandpa. Enough said? Be honest with yourself and if you really can’;t afford Florida State, and have to attend somewhere in state, then reality says you probably should. Discuss this together with your parents or guardians. Make sure you can afford to go to college. You should NOT go bankrupt for a college education.

Find your fit first, Find the 2-3 colleges that fit you and that you would truly consider attending, and of course that provide the degree that you want. But use caution and play it smart.

Your Success is My Success,

Keith Lipke

Keith Lipke is a careers and college recruiter, public speaker, coach, mentor and blogger at The Hope Chest. His passion is to educate, inspire, and give hope to young people who need it upon their search for the right career and college.

Images from: http://www.mattwardman.com/blog/2008/10/21/market-penetration-by-uk-political-blogs-slugger-rules-the-roost-blog-platform/
and http://buzzzy.com/search?q=Healthcare+Bill&page=3
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