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President Bush signs $20B financial aid bill
Pell Grant will increase to $5,400
Sarah Kyo
Issue date: 10/9/07 Section: News
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President Bush signed a $20 billion college financial aid bill on Sept. 27 that will increase the maximum amount for the Pell Grant over the next five years and lower interest rates for undergraduate subsidized loans, according to the bill.
The College Cost Reduction and Access Act will be funded by cuts in subsidies to banks, according to the Associated Press.
Coleetta McElroy, assistant director for counseling and advising staff, said more than 6,000 SJSU students received Pell Grants, while approximately 9,900 students borrowed through the Stafford Loan program during the 2006-07 academic year.
"I feel that the passage of the bill will positively affect our students' ability to afford college and attain their education," McElroy said.
McElroy, who works in the Financial Aid and Scholarship Office, said starting on July 1, 2008, the maximum Pell Grant will increase from the current amount of $4,310 to $4,800 for the financial aid award years 2008-09 and 2009-10. For 2010-11 and 2011-12, the maximum will increase to $5,000 and then reach its peak of $5,400 for 2012-13.
"In today's knowledge economy, we must provide our students with greater access to a post-secondary degree," said U.S. Secretary of Education Margaret Spellings in a press release.
Spellings said Pell Grants are the "most effective way" to target students in most need of financial assistance.
Nnamdi Nwaigwe, a junior management information systems major, said the law will be beneficial for students.
"I think it's quite important because students had a tough time, even with the Pell Grant," Nwaigwe said.
Nwaigwe, who has a Pell Grant and subsidized student loan, said he had difficulties getting situated with the Financial Aid and Scholarship Office and the Bursar's Office prior to this semester.
Reductions in interest loans for subsidized Stafford loans will begin with the first disbursements after July 1, 2008, McElroy said.
The College Cost Reduction and Access Act will be funded by cuts in subsidies to banks, according to the Associated Press.
Coleetta McElroy, assistant director for counseling and advising staff, said more than 6,000 SJSU students received Pell Grants, while approximately 9,900 students borrowed through the Stafford Loan program during the 2006-07 academic year.
"I feel that the passage of the bill will positively affect our students' ability to afford college and attain their education," McElroy said.
McElroy, who works in the Financial Aid and Scholarship Office, said starting on July 1, 2008, the maximum Pell Grant will increase from the current amount of $4,310 to $4,800 for the financial aid award years 2008-09 and 2009-10. For 2010-11 and 2011-12, the maximum will increase to $5,000 and then reach its peak of $5,400 for 2012-13.
"In today's knowledge economy, we must provide our students with greater access to a post-secondary degree," said U.S. Secretary of Education Margaret Spellings in a press release.
Spellings said Pell Grants are the "most effective way" to target students in most need of financial assistance.
Nnamdi Nwaigwe, a junior management information systems major, said the law will be beneficial for students.
"I think it's quite important because students had a tough time, even with the Pell Grant," Nwaigwe said.
Nwaigwe, who has a Pell Grant and subsidized student loan, said he had difficulties getting situated with the Financial Aid and Scholarship Office and the Bursar's Office prior to this semester.
Reductions in interest loans for subsidized Stafford loans will begin with the first disbursements after July 1, 2008, McElroy said.
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