On May 7, 2008, President Bush signed HB5715 (U.S.), revamping financial aid programs for U.S. undergraduate students. The act, titled "Ensuring Access to Student Loans," is significant not only because it does exactly as its title suggests - ensures access to student loans - but also because it widens access for some students to two of the newest federally funded grant programs (ACG and SMART).
Changes to Student Loans:
- Undergraduate borrowers who qualify for the unsubsidized Stafford will see annual loan limits increase by $2,000.
- Undergraduate students enrolled in teacher certification programs may qualify for additional unsubsidized loan funding up to $6,000.
- Aggregate Stafford loan limits will increase to $31,000 for dependent undergraduate students, and $57,500 for independent undergraduate students.
- Parents who qualify for a PLUS loan will be able to request a deferment (as opposed to a forbearance) of payment for up to 6 months after their student's graduation.
- Parents who would have been previously eliminated from eligibility for a PLUS loan because of delinquency on a home mortgage or other kinds of debt may find they now qualify for this credit-based loan (even while still delinquent).
- Expands eligibility for ACG and SMART Grants to permanent U.S. residents, and students enrolled less than full-time.
- Opens eligibility for ACG to students who are entering higher ed. as sophomores, if credits were obtained through AP or IB programs; to students enrolled in higher ed. programs that award a certificate, rather than a degree; and possibly to students whose secondary education involved private or home schooling (though the language really moves the definition of "rigorous high school program" out of federal control into the control of the states and its actually going to be up to the states to define whether private or homeschooled students will meet this eligibility requirement); and
- Extends eligibility for SMART Grants to students enrolled in bachelor degree programs at institutions that don't permit the student to declare a major as well as to students enrolled in programs requiring a fifth year of study.
Until next time!
Lynn Byrne
Preparing for college admissions? Trying to find direction? Need a little help with the planning? Check out my college planning series:
- College Planning Made Easy--the planning and preparation workbook for the take charge, college-bound student,
- Paying for College Made Easy--a college financing guide designed to assist students and families in preparing and planning for higher education expenses; and
- The Great Scholarship Search--my guide for students and parents researching and applying for scholarship funding.
