New Student Aid Package: How Can You Benefit?

Reuters reports that President Obama will today sign into a law an overhaul of the nation’s student loan programs. The new rules cut banks out of the equation, which the President says will benefit students and taxpayers. From the article:

The White House said the change would save taxpayers $68 billion over the next decade. The money saved will help expand and strengthen the federal Pell Grant program for students.

The change will cap college graduates’ annual student loan repayments at 10 percent of their income, spends more at community colleges and awards $2.55 billion to historically black colleges and universities.

Obama’s fellow Democrats in the Senate and House of Representatives got the measure through Congress by tucking it into a package of changes approved last Thursday to the sweeping U.S. healthcare overhaul.

So how can you benefit from the overhaul? Most of the benefit will come in greater availability of student loans and Pell Grants. Pell Grants are need-based grants made to low-income students and you can apply online. Also, if you have an existing student loan, you will benefit from only having pay a maximum 10% of your total income to service the loan payments.

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