Recently, President Obama initiated a law that aims to provide students with the needed financial assistance, so that they could achieve higher education without having to land themselves in immense debts. This new student loan bill ensure that all student loans and grants will be provided by the government, rather than by the banks,who charge them an arm and a leg for their educational pursuit.
This bill will increase the quantity of Pell Grants, which currently provides financial help for 8.5 million students, who are enrolled in a college education.Initially American students had to face extreme financial pressure, due to the high cost of education, and therefore when a student would take a private loan to enroll himself in an institute, he would be knee deep in debts by the time he is to graduate.
The reason being the high interest charged by the banks and the scarcity of jobs for fresh graduates which further disabled their chances to repay a college loan within 6 months of graduation.
Thanks to this new student loan bill, savings will be collected by the government and will be use for Pell Grants, which would help some workers to be able to pay off their existing student loans. Banks would no longer be the middlemen for student loan and there would be lower interest rates, which would result in better approval rates on student loans.
President Obama enforced this change, on the context of aiming to give students affordable college education and as well as manageable debt situations. He even stated that such changes will encourage more students to apply for government loans, the cap repayments of which will be used to further enhance the quality of minor colleges and universities. The law will take affect from 2014 and will take only 10 percent of a graduate’s income as repayment charges.
With this student bill, President Obama aims to save taxpayers $68billion over the next decade as well as churning out the highest ratio of college graduate in the next 10 years. Hence this new student loan bill will ensure not only a stable education for deserving students, but will also improve the quality of American universities that will further attract foreign nationals to receive an education here.
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its ironic, our government is broke and overspending, and they are giving out loans? I can’t afford to go to college.. .but my tax dollars will help others go. that don’t seem fair to me.
Good to know this information. This “New Student Loan Bill” is a great HELP to all students especially those in need on financial assistance on their studies. Good Article!