With students returning to college across the nation, many of them are facing rising costs of tuition and books. The Daily Collegian of Penn State reports today on changes to federal students loans that make higher education more accessible and affordable for students.
Katrina Wehr writes:
The law, which was included in the health care reconciliation bill passed in March, simplifies the student loan process, therefore preventing students from accumulating unmanageable debt after graduation, Miller said.Learn about student loan reform and what's in it for you. Also, learn to separate the myths from facts about the Student Aid and Fiscal Responsibility Act.
"No one should have to mortgage their future to go to college," Miller said. "That's just unacceptable."
In an effort to meet President Barack Obama's goal of producing the most college graduates in the nation's history by the year 2020, SAFRA introduced an increase in funding for Pell Grants -- as the Consumer Price Index's cost of living increases, so will the monetary value of the grants.
He said the law also lowers caps on monthly loan repayments.
Beginning in 2014, borrowers who qualify for income-based repayment on their loans will be able to cap their payments at 10 percent of their monthly income, Miller said. Prior to the switch, the cap was 15 percent, Miller said.
