Federal student financial assistance in current dollars.
Relief for Student Loan Suffers
Published Thursday, July 2nd, 2009
Some relief has finally come to those struggling to pay off those student loans. New rules allow for borrowers to apply the plan to their remaining loan amount as of Wednesday, July 1st. Highlights include an income-based repayment plan that considers income and family size; also borrowers can set their monthly loan payment at 15% of their annual adjusted gross income. Plus, borrowers who make less than $16,245 — poverty level — would not be required to make any payments on their federal loans as long as their income remained at that level. Public Service also offers some relief as well in the form of loan forgiveness after 10 years of service. The Government increased the Pell Grants payouts from $619 to $5,350 — thanks to the Stimulus Act — for the 2009-2010 school year, decreased loan origination fees to 1% next July and cut interest rates from 6% to 5.6%.
The action is a result of several factors not the least of which includes skyrocketing tuition, which has reached $20,000 for a Private school and near $5,000 for public school in 2007. For 45% of Public college students and upwards to 60-75% of Private college students, the rise in tuition has resulted in loans to cover the cost of an education. This has lead to an annual Federal Assistance borrowing of $92,484 million and places the US second in Higher Education spending among developed countries.
Economy Influencing College Choices
Published Friday, April 3rd, 2009
For both applicants and schools spring presents a stressful time at the mail box. Acceptance and rejection letters are creating drama at home and at university as the economy influences applicants’ decision making. 39% have decided to include the amount of tuition when weighing private school acceptance letters. 53% of students who planned to attend a private college now report limiting their choices to public schools. Living arrangements have changed as well; many who would have lived on campus now choose to live with parents. And 27% are choosing the less expensive 2 year institutions instead of going straight to 4 year schools. Yet, 21% plan to defer college to work for a year in order to save for college tuition.
At the heart of the issue is the growth of tuition for both the private and public institutions. The rate at which these public and private schools have increased their tuition, faster than inflation, has raised concerns that many are being priced out of higher education. While there have been only subtle changes over the last 27 years in the different percentages of those attaining higher education degrees, the real change has come from the increase in federal student borrowing, which has increased $48,477 million since 2000 to $92,484 million in 2007.
U.S. Department Of Education - http://www.ed.gov/index.jhtml?src=a
The Department of Education was created in 1980 by combining offices from several federal agencies. The Department's mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. The site contains a host of statistics and research regarding all aspects of the issues of education.
Students.gov - http://students.gov/STUGOVWebApp/Public?topicID=1&operation=maintopic
Students.gov is an official U.S. government web site designed for college students and their families. Our mission is to provide you with easy access to information and resources from the U.S. government – all the info you need, in one place, from all parts of the government.