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
The bottom line of EdFed saved me thousands of dollars on my federal student loa ns. I had already consolidated most of my federal loans through another company.
Posted By : shane waston
Share this story:
EdFed introduces… Awareness… Learnal
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!
How EdFed Helped others!
EdFed astonished me with their array of repayment options. There were several different plans and also a variety of options for any obstacles that I might encounter. I was utterly satisfied with the selection. - Carlos L. Hartford, CT
Student Loan Consolidation Info - How to Choose the Right Loan Company
The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.
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.