Direct Lending
Beginning July 1, 2010, all Federal student loans will be originated through the Direct Loan program. Students should contact their schools with any questions.
For a 1 year period (July 1, 2010 to July 1, 2011) current students who have FFEL loans with a lender and also have FFEL loans that were sold to the Department of Education, or also have Direct Loans, may choose to consolidate the loans while still enrolled in school into the Direct Loan program. All borrowers may consolidate their loans 6 months after graduating or leaving school, regardless of the date.
Pell Grants
The maximum Pell grant award for the 2010-2011 school year will be $5,550, and increases in the maximum award will be indexed to the cost of inflation beginning in 2013. By 2017, it is expected that the maximum grant will reach $5,975.
Income Based Repayment & Public Service Loan Forgiveness
For current students, anyone with a Federal student loan, and new borrowers between now and June 30, 2014:
Beginning July 1, 2010, all Federal student loans will be originated through the Direct Loan program. Students should contact their schools with any questions.
For a 1 year period (July 1, 2010 to July 1, 2011) current students who have FFEL loans with a lender and also have FFEL loans that were sold to the Department of Education, or also have Direct Loans, may choose to consolidate the loans while still enrolled in school into the Direct Loan program. All borrowers may consolidate their loans 6 months after graduating or leaving school, regardless of the date.
Pell Grants
The maximum Pell grant award for the 2010-2011 school year will be $5,550, and increases in the maximum award will be indexed to the cost of inflation beginning in 2013. By 2017, it is expected that the maximum grant will reach $5,975.
Income Based Repayment & Public Service Loan Forgiveness
For current students, anyone with a Federal student loan, and new borrowers between now and June 30, 2014:
The Income Based Repayment option caps student loan payments at 15% of discretionary income (adjusted gross income less 150% of the poverty level based on family size) and remaining balances will be forgiven after 25 years of repayment. (More information on IBR from the U.S. Department of Education.)For NEW borrowers after July 1, 2014 (students who have never taken out a loan before- even if they are going back to college after a time away):
Additionally, those serving in public service or non-profit employment are eligible to have remaining balances forgiven after 10 years of employment in an eligible occupation and repayment. (More information on the Public Service Loan Forgiveness Program from the U.S. Department of Education.)
The Income Based Repayment option will cap student loan payments at 10% of your discretionary income and remaining balances will be forgiven after 20 years of repayment.
