The College Board's Trends in College Pricing 2006 states that the cost of attendance at a public four-year college increased from $10,375 to $12,796 between the 2001-2002 academic year and the 2006-2007 academic year. The total cost at a private four-year institution increased from $27,404 in 2001-2002 to more than $30,000 in 2006-2007. These astounding numbers mean one thing: action must be taken in order to encourage students not to give up their dreams of higher education.
Senator Edward M. Kennedy, Chairman of the Senate Health, Education, Labor, and Pensions Committee, commented on the House's recent actions to help students afford college, "The crisis in college affordability affects every low- and middle-income family in America and is threatening our economic progress as a nation. It's obvious we need to act immediately to make student debt more manageable."
A primary way to save money after borrowing is to consolidate federal student loan debt to secure a lower interest rate. Also, consolidating private student loan debt can allow students to take advantage of borrower benefits, more convenient repayment plans, and improved credit. In addition to the existing help provided by consolidation lenders, more assistance is on its way.
Senator Kennedy is co-sponsoring a bill, the Student Debt Relief Act, which will potentially implement other strategic and significant measures to aid students and families as they deal with the weight of accumulating college costs. One of the highlights of the Student Debt Relief Act is that it will create more available funds. For example, Kennedy is proposing an increase in the maximum Pell Grant amount. Currently, the grant offers up to $4,050; under the Student Debt Relief Act, this amount could be raised to $5,100. This seemingly slight increase could create a major change, making more than 285,000 additional college students eligible to receive the grant in the upcoming school year.
According to the 2006 State PIRG's Higher Education Project, "Unmanageable debt is affecting students' decisions to enter public service careers. 23% of public college graduates and 38% of private college graduates would have an unmanageable debt level if they were to live on a starting teacher's salary. The outlook is even bleaker for social work: student debt would be unmanageable for 37% of public college graduates and 55% of private college graduates living on the starting salary of a social worker."
With the recent Democratic push to reduce pressures on student borrowers, there is hope that these statistics can turn around. Consolidation lenders are also doing their parts to educate those who have student loan debt on taking control of their financial futures through the money-saving benefits of consolidation and smart borrowing. With the combined efforts of the lending community and the federal government, students may see a brighter future ahead.
Article Title : House Votes to Help Students
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I truly appreciate all the prompt and thorough responses I received! Your company is extremely helpful. I've had question after question answered, and not with one sentence. My contact at EdFed was detailed in her responses and was sure to address my every concern. Thanks again for helping me save thousands of dollars through your consolidation program! - Bonnie H. Tallahassee, FL
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Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.
You have worked hard to get to where you are and deserve to have some fun without being saddled by debt. Federal loan consolidation may provide you with a way to hold onto more of your hard-earned money.