PELL Grants Take a Hit in the New Budget

In a compromise budget recently passed by the House of Representatives, the maximum PELL Grant will remain at $5550, but there will be fewer students eligible. The grants will only be allowed through a student's sixth year or 12 semesters, rather than the current nine year or 18 semester limit.

Also in the budget, students receiving subsidized undergrad direct loans starting July 1, 2012 will no longer receive six months grace period when graduating or leaving college.



Technorati Tags: College Scholarships Financial Aid Paying for College PELL Grant Direct Loan

College Grants Under Fire

As state and Federal budgets continue to show huge deficits, no programs are off limits. At the Federal level, the proposed House budget would slash Pell Grants by almost 15%, with the maximum award being reduced from $5,550 to $4,705. President Obama is looking to reduce the Pell by eliminating the summer Pell and also by stopping the subsidy on graduate school students loan interest. Stay tuned for the latest updates.

A little lower on the radar is the Academic Competitiveness Grant and the SMART Grant programs are set to expire at the end of June.

Checking in with the states, proposed funding for the Connecticut Independent College Student Grants would be reduced by 25% in FY 2012 and 50% in FY 2013. Funding for the Kirkland M Kerr Grant would be eliminated. This program provides a stipend for students of veterinary medicine who need to attend an out of state program, since there is nothing similiar offered in Connecticut.

On the other side of the country, California is considering reducing Cal Grant expenditures by not allowing for profit colleges that have high rates of drop outs and loan defaults to take part. Additionally, all students would be re-evaluated each year to make sure they still qualify. While some students may disagree, this one seems like a no-brainer. If a student's family financial status changes, so should their eligibilty for various programs.

Technorati Tags: College Scholarships Financial AidPaying for College Pell Grant College Grants Cal Grants Connecticut Independent College Student Grant

New Federal Budget Could Mean Trouble for College Loans and Grants

When President Obama sends his proposed budget to the Congress on Monday, there could be changes included for Pell Grants and Perkins Loans.

According to cnn.com, the administration is looking to save $100 billion over ten years by making a couple of changes. These changes would first allow only one Pell Grant per year instead of the two now available (one for the regular school year and another for the summer session) and also stopping the subsidy on loan interest for graduate students. Implementing these changes would allow the maximum Pell Grant to be held at the current $5,500.

The Boston Globe reported there is concern over the Perkins Loan program which is set to expire in 2014. Without the program, hundreds of thousands of students would be forced to find alternative funding, which would probably mean higher cost private loans. Hopefully there will be good news about the program when the President's budget hits the hill.

Upcoming Scholarship Deadlines

Buick Achievers Scholarship Application deadline: March 31, 2011. However, students getting their applications in by 11:59 p.m. CT, February 25, 2011 may receive early consideration for five of the Buick Achievers National Scholarships.

Technorati Tags: College Scholarships Financial AidPaying for College Pell Grant Perkins Loan Buick Achievers Scholarship

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

Clairborne Pell Former R.I. Senator Dies

New Year's Day marked the passing of former Senator Clairborne Pell, who sponsored the program named for him (Pell Grant) which has helped tens of millions of students attend college.

Georgia's HOPE Grant Program

Georgia's HOPE Grant which is separate from the HOPE Scholarship, is available to Georgia residents attending a Georgia public technical college or public college or university in a certificate or diploma program regardless of high school graduation date or grade point average. The certificate or diploma program must be approved and the certificate or diploma must be awarded and issued by the institution. The Hope grant provides full tuition, HOPE-approved mandatory fees, and a book allowance at public institutions. You can get full information on requirements and application by visitng the GACollege411 website.

Technorati Tags: scholarship Paying for College College Grants Financial AidGeorgia GrantsHope GrantHope Scholarship

The University of Oregon announce that beginning in September, all incoming Oregonian freshmen who qualify for Pell Grants will receive aid packages that will cover the total cost of their tuition and fees. The program, called PathwayOregon, will pick up whatever costs aren't covered by federal and state aid.

Students qualifying for PathwayOregon will also be provided with academic support. Some students may also qualify for room and board.

To qualify, Oregon students must be eligible for the Pell Grants, have their admissions applications in by January 15, have the FAFSA into the University by March 1, apply for one of two University scholarships, as well as other requirements. You can read more about PathwayOregon at http://www.uoregon.edu/~pathway/

Technorati Tags: College Loans Financial AidPaying for College University of OregonCollege Grants PathwayOregon