This is just infromation that I recieved in an email about teh health care bill and its effect on student loans in higher education.
There is a student aid piece and it is not a full savings package as once thought by switching to direct lending – the original $80 billion in savings has been dropped to $61 billion - $19 billion of the $61 is now going to reduce the deficit and to help pay for health care. So essentially – there is now $40 million in savings from switching to Direct Lending that can be spent on education initiatives.
· Stripped entirely from final version - billions of dollars to extend a cut in the student loan interest rate past 2012, $8 billion for early childhood education, and the overhaul of the Perkins Loans program.
· College Access and Completion Fund – instead of $3 billion – now $750 million toward College Access Challenge Grant Program
· Pell Grant – originally was to increase it to $6900 by 2019 and tie it to inflation plus 1% - now maximum grant to $5975 in 2019 and NO increase for the next 4 of the next 10 years.
· AGI eliminated but $2 billion found from a program last year to fund the Community College and Career Training Grant Program – to help institutions create education or training programs of two years’ duration of less with the goal of producing workers.
· $500 million would go to a Dept of Labor program – Trade Adjustment Assistance – grants will be competitive but each state would be assured of receiving at least .5% of the funds.
· $50 million in bill to help institutions switch to direct loan program
· 1.5 billion to expand the income –based repayment options for student loan borrowers (IBR)
· $2.55 billion for historically black and other MSI colleges
Suspension of Eligibility for Drug Related Offenses – as of July 1, 2011 – period of ineligibility for aid for students convicted of a drug related offense while enrolled and receiving aid would be eliminated. But remain if convicted for selling. Changed on FAFSA to ask if convicted of selling.
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So please look at the benefits for the college students that are going to take effect because of the Health Care reform. They can stay on Thier parents insurance longer, and the area's that I am personally happy about because of a family memeber with special needs is the removal of life time coverage caps, the elmination of previos health issues blocking coverage. Let's also be greatfull for all the kids that will now have coverage as they grow up. This will give them a better chance to attend college because they are healthy. Higher ed will always need more money. My view is health care is a human right, higher education is a privillage for those who are willing to aply themselves. Will limited funding mean some people will not get into college? Maybe, but the money should come from other area's then. The hard choices we Americans will have to make have only started. I would love free college for everyone, but until that happens, choices are going to make soeme people happy and other mad.
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