Carson: Students Can Look Forward to Increased Financial Aid This Fall

Press Release

Carson: Students Can Look Forward to Increased Financial Aid This Fall

As high-schoolers and their families make final decisions about college, recently passed legislation will make higher education more affordable and ease the burden of student debt, Congressman André Carson said today.

The new law - included in the health care reform package recently passed by Congress - streamlines the college loan process and reinvests billions of dollars in savings back into student financial aid, generating more federal grant and lending opportunities. Of the $61 billion saved over the next 10 years, $51 billion will go toward making college more affordable (the remaining $10 billion will go toward reducing the deficit).
"Getting our economy back on track for the long run requires a more competitive workforce-and that begins with education." said Congressman Carson. "But right now, strained family budgets are putting college out of the reach for too many young Hoosiers and their parents.
"This new effort to bolster student aid programs aims to change that. Any student who has the grades and desire to go to college should have that chance, and this landmark investment will help open that door of opportunity for thousands of more young people--students who otherwise would have to forgo that shot at a college degree."

More information on new student loan opportunities:

Increases scholarship awards. Invests $36 billion over 10 years to increase the maximum annual Pell Grant Scholarship from $5,550 in 2010 to $5,975 by 2017. Starting by 2013, the scholarship will increase every year with the costs of living.

Lowers monthly loan payments. Starting in 2014, new borrowers who are eligible for income-based repayment will be able to cap their monthly loan payment at just 10 percent of their discretionary income-down from the current 15 percent.

Quickens debt forgiveness by five years. Starting in 2014, borrowers who make their monthly payments will see their remaining balance forgiven after 20 years, reduced from the current 25 years.

Invests in education. Makes a $2 billion investment in a competitive grant program for community colleges to develop and improve educational or career-training programs. Also makes a $750 million investment in programs to improve college access, promote financial literacy, and increase graduation rates.

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