February 15, 2007
DC—Help is on the way for students trying to pay off huge debts from outstanding loans. The president will increase the maximum amount of the Pell Grant in 2008. The new amount for those who qualify will be $4,600, according to the anticipated 2008 financial year budget. President Bush will push the Pell Grant increase through as long as no unforeseen problems arise. The increase will be the largest boost in more than three decades.
The budget also proposes an increase of the maximum Pell Grant to $5,400 by 2012. Furthermore, it suggests increasing the amount juniors and seniors can borrow in the form of student loans by $2,000. These changes are part of the president's agenda to make education a priority.
President Bush's budget also proposes a series of changes to the Federal Family Education Loan (FFEL) Program to help pay for the $2,000 increase. The plan is an attempt by the administration to help students from middle-class and low-income families. United States Secretary of Education Margaret Spellings stated, "We are welcoming the move; this will help the increasing demand for post-secondary education or training, [and] the president's action will enable more."
According to EdFed loan representative Emily Zaborniak, "This is something that can help students in addition to properly managing their student loans. If the Pell Grant is deducted from the loan and the loan is refinanced to a reasonable fixed rate, the student should have a much easier time managing overall expenses." This is good news for families that are struggling to pay expenses.
The Federal Pell Grant Program provides grants to low-income undergraduate and other qualifying students. A student's grant amount depends on many factors, including:
Any student who does not qualify for a Pell Grant can apply for other grants and can always refinance with EdFed.
- The student's expected family contribution.
- The cost of attendance.
- The student's enrollment status (full-time or part-time).
- How long the student will attend the accredited school.
EdFed is a student loan company dedicated to assisting students and graduates with financing college expenses and managing education loans. The company specializes in education lending and is dedicated to ensuring that loans are handled professionally and in a manner that benefits borrowers.
For more information, please contact Fred Godlash at 626-243-1838.