Spring Break
Bill to ease loan repayment woes
Issue date: 9/13/07 Section: News
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Congress passed Friday a bill that will make it easier for college students to pay tuition and later repay their loans.
The College Cost Reduction and Access Act of 2007 gives student borrowers the opportunity to repay loans as a percentage of their income.
"The University of Georgia participates solely in the Federal Direct Loan Program which enables students who are enrolled half-time or more to borrow low-interest money for educational expenses directly from the U.S. Department of Education," according to the University's financial aid Web site.
"Congress has passed the law, and the U.S. Department of Education will have to write the rules to go along with that, which will be given to the universities to implement. We probably won't receive those until mid to late spring," Little said.
Little said the default rate for University students is 1.3 percent.
Lower interest rate savings per student over the life of the loan at a four-year school (once fully phased in): $4,230.
Total number of students who receive the Pell Grant this year: 179,86
Source: U.S. House of Representatives Committee on Education and Labor's Web site
-Claire Miller
The College Cost Reduction and Access Act of 2007 gives student borrowers the opportunity to repay loans as a percentage of their income.
PELL GRANTS:
Increases the maximum Pell Grant amount (now $4,310) to $4,800 by year 2010, $5,490 by 2012 and $6,580 by 2013.INCOME BASED REPAYMENT PROGRAM:
Borrowers have the opportunity to repay loans as a percentage of their income.STAFFORD LOAN PROGRAM:
Stafford Loans fall into the loan program the University uses, said Susan Little, the director of the Office of Financial Aid."The University of Georgia participates solely in the Federal Direct Loan Program which enables students who are enrolled half-time or more to borrow low-interest money for educational expenses directly from the U.S. Department of Education," according to the University's financial aid Web site.
IMPLEMENTATION:
The act takes effect on July 1, 2008."Congress has passed the law, and the U.S. Department of Education will have to write the rules to go along with that, which will be given to the universities to implement. We probably won't receive those until mid to late spring," Little said.
WHY STUDENTS HAVE TROUBLE REPAYING LOANS:
"Students who default on loans usually just don't have the resources to make payments, so this will be a great benefit for our students," Little said.Little said the default rate for University students is 1.3 percent.
BENEFITS FOR UNIV STUDENTS IN GEORGIA:
Total increase in loan and Pell aid over five years: $859,007,000.Lower interest rate savings per student over the life of the loan at a four-year school (once fully phased in): $4,230.
Total number of students who receive the Pell Grant this year: 179,86
Source: U.S. House of Representatives Committee on Education and Labor's Web site
-Claire Miller
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