This morning Michelle Singletary noted in the Washington Post the many benefits for students in the Health Care and Education Affordability Reconciliation Act of 2010.
She wrote:
She wrote:
The federal Pell Grant program will get a badly needed financial boost. The Obama administration says the new law pumps more than $40 billion into this program, which provides need-based grants to low-income undergraduates and certain graduate students.
Starting in 2013, the award will be scaled to the consumer price index, adding on a cost-of-living increase. That will raise the maximum from $5,550 to $5,975, according to CBO estimates.
Here's what really excites me. There will be additional funds for community colleges, historically black colleges and other institutions that serve minorities.
Community colleges are expected to get $2 billion over four years. Minority and historically black colleges and universities will get $2.55 billion.
It's about time community colleges got some attention and needed funds. Maybe now, these institutions will shed the reputation that they exist for the academically challenged. Maybe now they won't be seen as the "13th grade," as some people say in discouraging students from this road to higher education.
...
At least if you're stuck with the debt, provisions in the health-care law will lower the cap on monthly payments for some.
Beginning in 2014, student-loan payments under the income-based repayment plan will be capped at no more than 10 percent of a borrower's discretionary income -- the amount of a person's adjusted gross income that exceeds 150 percent of the poverty line for the family size. Payments are capped at 15 percent.
If people keep up their payments, any borrowed amount not paid after 20 years will be forgiven (down from the current 25 years). For public service workers -- teachers, nurses and those in military service -- the debt is forgiven after 10 years.
In many respects, it was quite appropriate to fold higher education provisions into the health-care reform legislation. The financial health of a lot of people has been hurt by the amount of debt they use to get an education.
