Pell Grants Increase While Lender Subsidies Decrease
On Friday June 20, the Senate approved the Higher Education Access Act of 2007 by a vote of 78-18. The bill, if approved by the House, would increase Pell Grant eligibility and lower government subsidies to outside lenders. The House passed a similar proposal—the College Reduction Act of 2007—in June, making a compromise on both versions likely. The overarching theme of the bill was an increase in government aid to students and, at the same time, a decrease in aid provided to student lenders.
Lowered subsidies would likely result in increased interest rates for students who take out loans from lenders outside of the government. Government loans offer students the best interest rates, but such loans also have smaller borrowing limits. Many students end up looking to lenders subsidized by the government for additional aid. While interest rates on subsidized loans are not as favorable as those offered by the government, they are still more favorable than those offered by private, unsubsidized lenders.
According to MarketWatch, the new bill could save the government up to $15.4 billion by 2012. The bill’s sponsor, Senator Edward Kennedy, D-Mass, was enthusiastic about the approval stating, "The passage of the Higher Education Access Act tonight was a victory not only for students and their families, but for the American people. With this new congress we made education a national priority again, and we’ve given the next generation the tools they need to compete in the global economy."
Fortunately for student borrowers, the bill did address worries about lender rate increases. Cuts on outside lender subsidies were also accompanied by increased caps on government loans as well as by increased laxity on government loan eligibility requirements. These changes are likely to benefit students who don’t borrow much. For those that do, effects will depend on just how much more the government is willing to lend and on how much outside lenders will choose to charge after cuts.
American Legion Auxiliary Spirit of Youth Scholarship
Award Amount: $5,000
Deadline: March 1
Scholarship Description:
The Spirit of Youth Scholarship provides opportunities for students across the United States to receive financial support for their education. Each state/department winner will receive a $1,000 scholarship, with the potential to compete for a $5,000 national scholarship. Established in 2023-2024, this scholarship continues to recognize and reward exceptional students nationwide.
Scholarship Details
- State/department winners receive a $1,000 scholarship
- Five national winners (one per division) receive a $5,000 scholarship in lieu of the $1,000 award
- National winners are selected based on a scoring rubric by the National Education Committee
- Divisions include Central, Eastern, Northwestern, Southern, and Western
Eligibility Criteria
- Applicants must compete within their respective state/department
- Open to students from all 52 states/departments, including the District of Columbia and Puerto Rico
- National winners are selected from state/department-level recipients
Application Process
- Complete and submit the application by March 1st
- Compete for the $1,000 state/department scholarship
- State/department winners automatically qualify for consideration for the $5,000 national scholarship
The Spirit of Youth Scholarship is a wonderful opportunity to receive financial assistance for your education. If you are passionate about your future and meet the eligibility requirements, we encourage you to apply before the March 1st deadline.
L. Ron Hubbard Illustrators of The Future Contest
Award Amount: $5,000
Deadline: June 30
Scholarship Description:
L. Ron Hubbard’s Illustrators of the Future Contest is an opportunity for new science fiction and fantasy artists worldwide to have their work judged by some of the masters in the field and discovered by a wide audience.
Scholarship Details
- A historic and influential contest in the fields of science fiction and fantasy art.
- Open to new science fiction and fantasy artists worldwide.
- Entries are evaluated by industry masters.
- Entrants do not need to pay an entry fee, and they retain all publication rights.
Eligibility Criteria
- The contest is open to new science fiction and fantasy artists from around the world.
Application Process
- Submit your artwork for consideration in the Illustrators of the Future Contest.
- Entries are evaluated by a panel of professional artists.
- Three winners are selected each quarter, receiving $500 each.
- From the quarterly winners, one grand prize winner is chosen annually, receiving the L. Ron Hubbard Golden Brush Award and an additional $5,000 cash prize.
The Contest is open to entrants from all nations. (However, entrants should provide themselves with some means for written communication in English.) All themes of science fiction and fantasy illustrations are welcome: every entry is judged on its own merits only. The Contest is open to new and amateur artists who have not been professionally published and paid for more than three black-and-white story illustrations, or more than one process-color painting, in media distributed broadly to the general public. Winners in each quarter will be individually notified of the results by mail or e-mail. Deadlines are in March, June, September and December.
Students still have a lot to cheer about. The biggest perk of the Higher Education Access Act is its proposal to increase government grant offers. Free money is the best kind. Like scholarships, grants provide students with aid that need not be repaid. If the bill is enacted, the government would increase the amounts of Pell Grants a student may receive to a maximum $5,100. It would also alter the formula used to determine grant eligibility in a way that would lessen restrictions on financial circumstances required for grant reception.
Additional bill provisions include loan forgiveness options for borrowers who work in areas of public service for ten years, a cap on monthly loan payments required of students, and the establishment of a program that would increase competition between lenders. If the bill passes, the enactment may be expected within the next few months.
Posted By Scholarships.com to Scholarships.com Blog at 7/20/2007 09:57:00 AM