The world of college financing is changing for the better. Federal student aid amounts are getting much higher, and more students will be able to take advantage of them. When working out college financing, students will get more money in their Pell Grants and more help paying back their loans after graduation.
Starting July 2010, all new federal student loans, such as Pell Grants, are made through a system called the Direct Loan Program. Now when worrying about college financing, parents can rest a little easier. Rather than borrowing money from banks with high rates, students borrow it from the Department of Education.
You can see how much college financing is changing just by looking at the numbers. The maximum amount of Pell Grants is increasing to over five-thousand dollars.
In the world of college financing, the income-based repayment plan has improved, as well. Now student loan repayment after graduation will be based on income and the size of family. With more students and parents worried about college financing, the good news is that this income-based repayment program will get even better in 2014. Are you ready for more good college financing news? As of the first of July, new subsidized loan interest rates decreased to less than five percent.
Now college financing will be much less of a burden on families who cannot pay for school out of pocket. With college financing changing, more students will have the ability to exercise their potential and make college dreams a reality!