Posted on September 20, 2007
A recent bill passed by Congress will help make more money available for low-income students, and attempt to relieve the debt burden on students while not creating any new cost for taxpayers.
The College Cost Reduction and Access Act will make grant aid available to low-income students who apply for financial aid. The bill will increase Pell Grant awards and lower Stafford Loan interest rates, reported a Public Interest Research Groups (PIRG) press release. The federal government hopes this bill will not only help low-income students pay for college, but also help graduating students pay their debts from student loans.
“The jury is still out because it is still too new of a bill,” Brad Barnett, senior associate director of financial aid and scholarships, said. He added that the immediate effect for JMU students would be an increase in Pell Grant amounts, potentially benefiting about 50 percent of the JMU student population.
In addition to the Pell Grant awards, there are also other federal assistance awards, state grant programs, JMU grant programs and scholarships.
“[The] new bill will give me more money now, but not when I pay it off,” sophomore Nick Curtis said. However, Curtis said that he could not see the bill changing anything because financial aid is still based off income.
Other JMU students, like freshman Jessica Wheeler said that the bill is focused toward helping low income students. Wheeler believes the government should take other aspects that may affect a family’s financial situation into consideration when determining who should receive financial aid.
The College Cost Reduction and Access Act focuses on providing more money and lower interest rates for low-income students, not on restructuring the Free Application for the Federal Student Aid process. Aid process. who should receive financial aid. The College Cost Reduction and Access Act focuses on providing more money and lower interest rates for low-income students, not on restructuring the Free Application for Federal Student Aid process.
“The biggest thing for anyone is to be sure to submit FAFSA by the March 1 priority deadline in order to have the best chance to get a [financial] package,” said Barnett.
According to Barnett, JMU has seen an increase in the number of students needing financial aid but have received less money from the federal government. Since there has been no significant increase in state and federal grant allotments, fewer students will be able to receive money for financial aid.
“We always award grants first for those who are needy before we loan for work programs and work study,” Barnett said.
In addition to raising the Pell Grant amount, the College Cost Reduction and Access Act also will help protect student borrowers from having to make unmanageable payments, according to PIRG. This provision will help ensure a better start for college graduates with student loan debts.
Many JMU students plan to work to pay off their student loan debts. A specifically designed program to help pay off debts does not exist at JMU, Barnett said, but there are grant programs and employment opportunities to help JMU students pay off student loan debts.
President Bush is expected to sign the legislation into law, according to PIRG.
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