Raises Pell Grants, eases loan repayments, & funds community colleges
Changes paid for by eliminating $68 billion in fees to banks
By Miriam Raftery
April 3, 2010 (San Diego’s East County) – Most Americans don’t realize that the Health Care and Education Reconciliation Act signed into law on March 30th by President Barack Obama affects more than the health care industry. It also brings sweeping change to the federal student loan program. Obama termed this “one of the most significant investments in higher education since the G.I. Bill.”
Under the new law, the federal government will stop paying fees to private banks to act as middlemen on loans to students. The measure will save the U.S. government nearly $68 million over the next 11 years—money that will be invested in more Pell Grants made directly to students. The new law will also make it easier for students to repay loans after graduating. In addition, $2 billion will be invested in community colleges for education and career training programs.