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Obama Signs HEA Technical Corrections Legislation


Jul 7, 2009

Congress has passed and President Obama has signed a bill that provides "technical corrections" to the Higher Education Act, which Congress renewed last year. In addition to offering clarification on several points and correcting minor errors, the Technical Corrections bill also makes some useful changes to federal student financial aid.

Minor clarifications include: Updating the list of veteran's benefits not counted as financial aid to include benefits from the new GI Bill that goes into effect this year Stating that lenders can provide both entrance and exit loan counseling to students Setting 2010-2011 as the year in which the EZ FAFSA will need to be implementedMore substantial changes include:Authorizing the Department of Education to buy up rehabilitated student loans [...]

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90 months ago 0 comments

While it falls in the middle of summer on most academic calendars, July 1 marks an important date for financial aid each year.  On July 1, the Education Department switches from the 2008-2009 academic year to the 2009-2010 one, and new federal rules for financial aid go into effect. This means new loan consolidation and repayment options, lower interest rates on some federal student loans, [...]

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As part of his campaign's focus on education, President Obama pledged his administration would address issues of the financial aid application process, such as the length and complexity of the Free Application for Federal Student Aid, or FAFSA. Education Secretary Arne Duncan has previewed some of the administration's proposed changes, with a formal announcement expected today. While not as [...]

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With unemployment continuing to rise, college savings funds still performing poorly, and some states being forced to make cuts to grant and scholarship programs, many students are likely to be facing a very different financial situation when it comes to paying for college in 2009, as opposed to 2008.  Students who have experienced a significant change in their financial circumstances since [...]

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Student financial aid programs in several states may soon fall victim to sweeping budget cuts necessitated by the recession.  Ohio, Florida, Michigan, and California are all considering proposals to reduce or eliminate some state student aid programs, including popular grants and scholarships.

Ohio and Florida are both making slight changes to rules in existing aid programs, resulting [...]

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Early reports suggest that summer enrollment is up at colleges across the country, likely due at least in part to the recession.  Since summer jobs are harder to find and some summer internships have also been taken off the table, more students are looking to summer classes as a way to stay productive between spring and fall semesters.  Dwindling college funds and other economic difficulties [...]

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Roosevelt University in Chicago has just awarded its first batch of full-tuition scholarships to students graduating from Social Justice High School, a school on the city's southwest side.  Eight graduates from Social Justice High School earned four-year scholarships, each worth more than $80,000, for earning good grades and doing well on the ACT.

The program was announced in 2006 to [...]

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As we mentioned yesterday, the 2008-2009 school year is winding down, and people are preparing to flip over to a new academic calendar and a new college application cycle.  However, that doesn't mean that students still seeking admission or financial aid for 2009-2010 are completely out of luck.  There are still colleges and scholarships accepting applications right now.  In fact, there are [...]

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Yesterday, Congress held a hearing to begin the process of determining the fate of the Federal Family Education Loan Program, the bank-based federal student loan program that President Obama has proposed eliminating in the 2010 federal budget. Voices from both sides of the debate chimed in, with one clear theme emerging: in 2010, student loans are definitely going to change. The questions at [...]

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The Obama administration recently announced steps that will be taken to make it easier for unemployed Americans to return to college and pay for school. Through a national effort to revise unemployment benefits and financial aid packaging, the administration hopes to make it possible for more displaced workers to return to school.

Currently, many states reduce or cancel unemployment [...]

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A little over a week after announcing his plans to gear up for battle with student lenders over the future of the Federal Family Education Loan Program, President Obama has begun calling in the troops.  An e-mail message sent to young Obama supporters by the Democratic National Committee is urging students to speak up in favor of the President's proposal to switch all federal lending to the [...]

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As Congress moves forward with a federal budget plan for 2010, rhetoric is ramping up on both sides of what is proving to be one of the most contentious budget debates so far:  whether or not to eliminate the Federal Family Education Loan Program.  President Obama initially proposed this move in his budget outline, saying that a move to Direct Loans would result in a savings of $48 billion, [...]

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Student loan default rates are rising for both federal and private loans as more recent grads struggle to find work.  The Wall Street Journal reports that the federal default rate is nearing 6.9 percent, the highest it's been since 1998.  Similarly, some private lenders are experiencing default rates that have already nearly doubled in just a year or two.

Loan repayment woes are [...]

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Analyses of the data published last week by the National Center for Education Statistics are already starting to emerge.  The Project on Student Debt has announced that a significantly larger portion of students borrowed private loans in the 2007-2008 academic year than in 2003-2004, according to the NCES survey.

Private loan borrowing increased by 9 percentage points, with 14 percent [...]

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There was an interesting article in The New York Times today offering a rare behind-the-scenes look at a university financial aid office.  If you're still baffled by your financial aid award letter, or you just are curious to find out how it was created, this article is a good read.  While it focuses on Boston University, an elite and expensive private college, many of the processes discussed [...]

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While an increasing number of college students received financial aid in the 2007-2008 academic year, that calendar year students also ran up more credit card debt.  The average college student owed $3,173 on credit cards in March 2008, compared to $2,169 in 2004.  This information comes from the student lender Sallie Mae, which has been tracking students' credit card debt since [...]

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As college costs continue to rise, the percentage of students receiving financial aid also continues to grow.  As of the 2007-2008 academic year, a full two-thirds of undergraduate students received some form of student financial aid, with 47 percent receiving federal aid. This is according to the "First Look" report on the National Postsecondary Student Aid Study published by the National [...]

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Today we move on to the final part of our Understanding Your Financial Aid Award Letter series.  If you were lucky enough to have your entire tuition paid through free money for college, then you can stop reading now.  But the vast majority of students who apply for aid will be awarded at least one less ideal form of financial aid.  Sorting through the rest of your award letter is the tough [...]

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So you've figured out your cost of attendance, your expected family contribution, and the total amount of aid you're being offered at each college.  However, not all aid is created equal, and a package that appears to meet your full need could actually get you into more debt than a package that leaves a substantial gap.  A useful move both in choosing a college and budgeting out what you need [...]

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Along with acceptance and rejection letters, colleges are sending out another nerve-wracking piece of mail this month: the financial aid award letter.  For many families who have only recently discovered the "joys" of completing the FAFSA, the financial aid letter can bring about a whole new kind of terror and confusion.  Even for people who are somewhat familiar with aid, deconstructing the [...]

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Yesterday, the House and Senate both passed outlines for the 2010 federal budget.  Both propose about $3.5 trillion in spending and preserve many of the priorities of President Obama's budget, including more spending on federal student financial aid. A conference committee will hammer out the differences between the two packages and create a compromise budget.

On financial aid, the [...]

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Earlier this week, we blogged about the recession making getting into a PhD program more difficult for prospective graduate students.  Prospective undergraduates are also facing a changing admissions landscape, but the picture for them is more complicated. Articles about colleges' admission conundrums have abounded this week as acceptance letters and financial aid notices make their way to [...]

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Are you getting ready to kick off the college search, but unsure where to begin?  Today and tomorrow, prospective college students can participate in CollegeWeekLive, a free college prep event featuring college admissions and financial aid information from schools and experts across the country.  The event takes place online at CollegeWeekLive.com and kicks off today at 10 AM EDT, with the [...]

94 months ago 0 comments Read More

While April may be the cruelest month, March can be especially rough for students bound for college or graduate school.  Late March and early April are when admissions decisions and financial aid letters roll out for those not immediately accepted or rejected by their dream schools, and around now, things are getting pretty agonizing.  While a large part of March is consumed by waiting, even [...]

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More students are completing the FAFSA early for 2009-2010 according to data collected by the Department of Education.  By the end of February, more than 3 million students had filed their FAFSA for the next academic year, an increase of over 20 percent from the first two months of 2008.  As application deadlines approach, this flood of applications could slow, but right now it looks like [...]

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The omnibus spending bill passed by the House of Representatives in February was approved by the Senate last night, and is expected to be signed by President Obama this week.  The bill includes more funding for Federal Pell Grants, fixing the maximum award at $5,350 for 2009-2010, a number that's already been widely publicized.

Other student financial aid programs also receive a [...]

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