Tags: Bankruptcy, borrower, College Loans, credit, Debt, education, FAFSA, Finance, Free Application for Federal Student Aid, high interest loans, interest, interest-free loans, lender, loan, Office of Federal Student Aid, payday loans, stafford loan, Student financial aid, Student Financial Assistance, student loan, Student Loans, Student loans in the United States, subsidized loans, subsidized versus unsubsidized loan, Unsubsidized loan
Acquiring a university degree is now not a very easy task, as education in this age has become extremely costly. A regular income holder student cannot apply to a university of his choice, even though he may be talented. In such cases students have to end up taking loans, and thus their educational life is bounded with repayments of debts from a very early stage of their careers.
There are two types of loans that can be given to students based on those who apply for a Free Application for Federal Student Aid (FAFSA).
The two kinds of loans are subsidized and unsubsidized loan, the latter being the most common form of student loan.
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Tags: Direct Loan program, FAFSA, federal student-aid programs, Free Application for Federal Student Aid, government proposal, Interest Rates, need-based federal student loans, Pell Grant scholarship, Student Aid and Fiscal Responsibility Act of 2009
If a government proposal to increase federal student aid passes then students can look forward to increased college affordability at no new cost to taxpayers.
The Direct Loan Program
The Student Aid and Fiscal Responsibility Act of 2009, would face a House vote next week. The act proposes to run all new federal student loans through the Direct Loan Program starting in 2010. By this students would be allowed to borrow directly from the federal government and then they do not need to go through third-party lenders, such as banks, whose federal student-aid programs are subsidized by taxpayer money.
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Tags: Accrues, Cal grant, California, college financial aid system, congress, Dependent students, FAFSA, family, Federal Government, federal guarantee, federal Stafford loans, federal student aid, financial forms, finanical aid, Free Application for Federal Student Aid, grant, income, income tax data, independent, interest, Loans, Obama Administration, Parent Loans for Undergraduate Students, payment, Pell grant, PLUS, private lenders, Recession, The Department of Education
There have been several changes in the college financial aid system. Here are the six most important developments.
1. More generous Pell grants
The Pell grant is one of the most important kinds of federal student aid that is available. Dependent students with family incomes up to about $50,000 are eligible for this kind of grant. Independent students who have low incomes can also avail this grant. Every year, the Congress sets the maximum grant. The maximum grant was $4,731 in 2008-09; and in 2009-10, it will be $5,350.
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