Health Care Reform Bill: Student Loan Changes
This week we heard much about the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act but did you know that the bill includes changes to the student loan program?
The student loan overhaul was approved by Congress this week. Proposed measures apply to loans that originate on or after July 1, 2010. Several expected modifications are highlighted in the following bullets. We also posted links to documents that provide additional insight into how the program will change.
Proposed Student Loan Changes
Politics Daily
NY Times
Smart Money
The student loan overhaul was approved by Congress this week. Proposed measures apply to loans that originate on or after July 1, 2010. Several expected modifications are highlighted in the following bullets. We also posted links to documents that provide additional insight into how the program will change.
Proposed Student Loan Changes
- The Pell grant program will remain solvent. The maximum grant will increase from $5,550 in 2010 to $5,975 by 2017.
- All student loans will be originated by the U.S. Department of Education.
- The bill does not affect the terms of existing student loans. However, it does make helpful changes to the existing Income-Based Repayment program as highlighted in the Politics Daily source link below.
- The bill will lower the Income-Based Repayment program cap to 10% of discretionary income for new borrowers, and shorten the repayment window from 25 years to 20. After twenty years the remaining loan balance may be forgiven.
Politics Daily
NY Times
Smart Money
Hopefully colleges and universities will listen to Obama and "do their part" in trying to cut down tuition costs. It's great that they're making adjustments for student loans, but tuition itself needs to be looked at as well.
Hanna
Mobile Solutions
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Excellent read, I just passed this onto a colleague who was also looking for it, And he actually bought me lunch because I found it for him. So I should thank you for the free lunch I got.
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let's hope that this reform will be useful for all.
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