Posted on 07/10/2009 7:15:53 PM PDT by Libloather
Changes in student loans could mean savings for you
JEAN CHATZKY TIMES-DISPATCH COLUMNIST
Published: July 9, 2009
**SNIP**
Graduates in the Class of 2009 have an even better deal, says Edie Irons, communications director of the Project on Student Debt. "If you consolidate during your grace period, which is the six months after you graduate, you can lock in a rate of 1.88 percent."
New borrowers of subsidized (need-based) Stafford loans are also going to see lower rates. Because of the College Cost Reduction and Access Act of 2007, the interest rate on these loans for 2009-2010 is going to be 5.6 percent, compared with 2008-2009's rate of 6 percent. Even better, rates on these loans are going to continue to fall until they hit 3.4 percent in 2011.
Pell Grants are worth more. "The American Recovery and Reinvestment Act of 2009 increased the Pell Grant to $5,350 for 2009-2010," says Mark Kantrowitz, publisher of http://www.finaid.org. Pell Grants are awarded based on need, and they don't need to be repaid. To find out if you're eligible, you have to fill out the Free Application for Federal Student Aid, available at http://www.fafsa.ed.gov.
Take advantage of other perks. If you work full time in a public-service job, your Federal Direct Stafford loans, Federal Direct PLUS loans and Federal Direct Consolidation loans will be forgiven after 10 years. The range of public-service jobs is large and includes government jobs, public health, education, many social-work positions, public defenders, public librarians, law enforcement and firefighters, and employees of 501(c)(3) organizations.
(Excerpt) Read more at timesdispatch.com ...
Heard that on today's Laura Ingraham show. From what I gathered, the money source has changed and has been put into an entitlement category.
Pretty generous with our money. Of course it expires just before the next election, I wonder why ? And we take it like fools.
No wonder this county is going to hell in a hand basket faster than speeding bullet.
Nothing new, Pell grants have always been treated as an entitlement in financial aid awards. A student can have outside resources and scholarships that exceed their cost of attendance and still receive their Pell grants and be over-awarded. Pell grants are never reduced, except when the student’s enrollment level is reduced, i.e. full-time to half-time.
My wife once worked for a public 2-year college. Soon after they would distribute the grant checks, the college would get calls from furniture and clothing stores wondering if the check about to be signed over to them was good.
I wrote these words to the tune of Elvis’ “Crying in the Chapel”.
I’m going shopping with my Pell Grant
Who needs to go to school
I’ll get some new dresses
They’ll make me look real cool
When I’m shopping with my Pell Grant
Joe and Jane six-pack foot the bill
I’ll get my free furniture
Even though they never will
Financial Aid awaits me
A lifetime on the take
Blue skies, there are no worries now
I’ve got babies to make
I’m going shopping with my Pell Grant
Who needs to go to school
I’ll get some new dresses
They’ll make me look real cool
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