New government legislation may decrease financial burden on college students
Shauna Keeler
Issue date: 2/22/07 Section: News
- Page 1 of 2 next >
As college tuition unceasingly continues to rise, many families and students are forced to make sacrifices for their education. Fortunately, a new legislation, which will help ease those suffering with their college payments, was passed in the House of Representatives and is awaiting approval from the Senate,
This new legislation, named the College Student Relief Act of 2007, passed by the House at the end of last January, is expected to cut the interest rates of college loans in half, from 6.8 percent to 3.4 percent . This interest rate reduction on Stafford loans would happen over a five-year period; while the proposed increase in the grant program is for the federal Pell grant.
Director of Admissions Dianne Crozier said that although it is too soon to tell what kind of effects this new legislation may have on students' admission to Union, she stated that "anything the government can do to help families with the cost of education is a plus, so let's hope [the legislation] gets approved."
For Union students and parents, the new bill will undoubtedly help with financial strains. The average cost of attending Union this year is $45,550. In fact, according to Union's website, this number is "only 72 percent of what it costs to provide each student's education, with the difference made up by gifts and endowment income."
Although Union does offer aid to those in need through work-study jobs, grants and scholarships, many still have difficulty making ends meet when it comes to paying for school and are forced to take out loans. For many parents with multiple students in college, the cost has become overbearing.
"We certainly feel [this new legislation] would be helpful for our students once they are repaying their student loans," said Laura Augustine, Associate Director of Financial Aid.
However, Augustine added that the financial aid office would "like to see an increase in the amount students could borrow in loans, such as the Stafford loan."
This new legislation, named the College Student Relief Act of 2007, passed by the House at the end of last January, is expected to cut the interest rates of college loans in half, from 6.8 percent to 3.4 percent . This interest rate reduction on Stafford loans would happen over a five-year period; while the proposed increase in the grant program is for the federal Pell grant.
Director of Admissions Dianne Crozier said that although it is too soon to tell what kind of effects this new legislation may have on students' admission to Union, she stated that "anything the government can do to help families with the cost of education is a plus, so let's hope [the legislation] gets approved."
For Union students and parents, the new bill will undoubtedly help with financial strains. The average cost of attending Union this year is $45,550. In fact, according to Union's website, this number is "only 72 percent of what it costs to provide each student's education, with the difference made up by gifts and endowment income."
Although Union does offer aid to those in need through work-study jobs, grants and scholarships, many still have difficulty making ends meet when it comes to paying for school and are forced to take out loans. For many parents with multiple students in college, the cost has become overbearing.
"We certainly feel [this new legislation] would be helpful for our students once they are repaying their student loans," said Laura Augustine, Associate Director of Financial Aid.
However, Augustine added that the financial aid office would "like to see an increase in the amount students could borrow in loans, such as the Stafford loan."
Be the first to comment on this story