The American Recovery and Reinvestment Act of 2009
As President Obama pushes his economic spending package, what will it mean for college students and their families? Though the bill could still see amendments, here are a few of the possibilities:
Hope Scholarship
For 2009 and 2010, the Hope Scholarship Credit shall be an amount equal to the sum of (A) 100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student during any academic period beginning in such taxable year) as does not exceed $2,000, plus
(B) 25 percent of such expenses so paid as exceeds $2,000 but does not exceed $4,000.
So, the Hope may increase temporarily to a maximum of $2,500 per year.
Pell Grant
The maximum Pell Grant for the 2009-10 school year will be $4,860, an increase of $500 over the 2008-09 Pell. But, the College Cost Reduction & Access Act (CCRAA) added $490 to that top award so the maximum award should be $5,350. The program will be fully funded, so there will be no award reductions to applicants meeting the requirements.
Stafford Loans
Unsubsidized Stafford Loan limits could increase by $2,000. This will allow students to have a lesser need for private loans which might be at a significantly higher cost.
Federal Work-Study Program
Federal Work-Study will be funded with $490 million to be distributed to colleges. These must be 25% matched with non-Federal funds.
Special Allowance Payment (SAP)
Lenders who participate in the Federal Family Education Loan (FFEL) program, receive a subsudy known as a Special Allowance Payment (SAP) to ensure lender participation. During the current economic crisis, the SAP decreased to the point where lenders dropped out of the program. In the American Recovery and Reinvestment Act of 2009, the SAP calculation will be tied to the London Interbank Offered Rate (LIBOR), which should boost it back to levels that will provide stability in the student loan market.
Recently updated pages at College Scholarships, Loans & Grants
Kentucky Loans and Grants,
Kentucky Scholarships, Oklahoma Scholarships, Delaware Scholarships, West Virginia Scholarships, North Carolina Scholarships, West Virginia Loans and Grants
Technorati Tags: College Scholarships Pell Grants Paying for College Stafford Loans Federal Work Study Hope Scholarship
As President Obama pushes his economic spending package, what will it mean for college students and their families? Though the bill could still see amendments, here are a few of the possibilities:
Hope Scholarship
For 2009 and 2010, the Hope Scholarship Credit shall be an amount equal to the sum of (A) 100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student during any academic period beginning in such taxable year) as does not exceed $2,000, plus
(B) 25 percent of such expenses so paid as exceeds $2,000 but does not exceed $4,000.
So, the Hope may increase temporarily to a maximum of $2,500 per year.
Pell Grant
The maximum Pell Grant for the 2009-10 school year will be $4,860, an increase of $500 over the 2008-09 Pell. But, the College Cost Reduction & Access Act (CCRAA) added $490 to that top award so the maximum award should be $5,350. The program will be fully funded, so there will be no award reductions to applicants meeting the requirements.
Stafford Loans
Unsubsidized Stafford Loan limits could increase by $2,000. This will allow students to have a lesser need for private loans which might be at a significantly higher cost.
Federal Work-Study Program
Federal Work-Study will be funded with $490 million to be distributed to colleges. These must be 25% matched with non-Federal funds.
Special Allowance Payment (SAP)
Lenders who participate in the Federal Family Education Loan (FFEL) program, receive a subsudy known as a Special Allowance Payment (SAP) to ensure lender participation. During the current economic crisis, the SAP decreased to the point where lenders dropped out of the program. In the American Recovery and Reinvestment Act of 2009, the SAP calculation will be tied to the London Interbank Offered Rate (LIBOR), which should boost it back to levels that will provide stability in the student loan market.
Recently updated pages at College Scholarships, Loans & Grants
Kentucky Loans and Grants,
Kentucky Scholarships, Oklahoma Scholarships, Delaware Scholarships, West Virginia Scholarships, North Carolina Scholarships, West Virginia Loans and Grants
Technorati Tags: College Scholarships Pell Grants Paying for College Stafford Loans Federal Work Study Hope Scholarship
Labels: college grants, college loans, college scholarships, hope scholarships, pell grants, stafford loans, student grants
posted by Ken MacKenzie at
5:06 PM
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