Revamping the Student Loan System

Student loans are a changin' For more than four decades, students have borrowed money from Uncle Sam to pay for college. That tradition continues this year, but with a twist: Starting July 1, all students who take out federal student loans will borrow directly from the federal government, instead of through a private lender. Remember, Uncle Sam is no pushover: If you fail to repay your loans after you graduate, you'll still face stiff penalties. A CLOSER LOOK AT STUDENT LOANS Direct Loan interest rates for academic year 2010-201l: 4.5% 6.3% 7.9% > Subsidized Stafford loans Unsubsidized Stafford loans? 22 offered to studente regardless of financial need Taneeds-based loans; PLUS loans A second provision in the bill sweetens a that cape program student-debt Annual loan limits for dependent undergraduate students: Direct Loan interest rates for academic year 2010-2011: Freshman Sophomore Third year and beyond pamente based on income and family $5,500 $6,500 $7,500 YER! but only for sige. students whe begin school in 2014 or later. Q: How much money will the government save? A: Taxpayers will save $68 billion over the next 11 years, according to the Congressional Budget Office. JAP! Q: How will this affect students and their parents? A: A chunk of the savings will go toward Pell Grants for college students to award more grants and to provide larger amounts. Community colleges and institutions with predominantly minority populations also will receive funding. Q: Will the changes bring down college costs? A: Sorry, no. Obama acknowledged as much before signing the bill when he urged colleges and universities to "do their part" to hold down costs. 2009 Average Annual Tuition and Fees, in current dollars $2,544 4 Year (public) 1,026 4 Year (private) 5,530 Max Pell Grant $26,213 2 Year (public) lopeLYsn asenes Student loans are a changin' For more than four decades, students have borrowed money from Uncle Sam to pay for college. That tradition continues this year, but with a twist: Starting July 1, all students who take out federal student loans will borrow directly from the federal government, instead of through a private lender. Remember, Uncle Sam is no pushover: If you fail to repay your loans after you graduate, you'll still face stiff penalties. A CLOSER LOOK AT STUDENT LOANS Direct Loan interest rates for academic year 2010-201l: 4.5% 6.3% 7.9% > Subsidized Stafford loans Unsubsidized Stafford loans? 22 offered to studente regardless of financial need Taneeds-based loans; PLUS loans A second provision in the bill sweetens a that cape program student-debt Annual loan limits for dependent undergraduate students: Direct Loan interest rates for academic year 2010-2011: Freshman Sophomore Third year and beyond pamente based on income and family $5,500 $6,500 $7,500 YER! but only for sige. students whe begin school in 2014 or later. Q & A Q: How much money will the government save? A: Taxpayers will save $68 billion over the next 11 years, according to the Congressional Budget Office. JAP! Q: How will this affect students and their parents? A: A chunk of the savings will go toward Pell Grants for college students to award more grants and to provide larger amounts. Community colleges and institutions with predominantly minority populations also will receive funding. Q: Will the changes bring down college costs? A: Sorry, no. Obama acknowledged as much before signing the bill when he urged colleges and universities to "do their part" to hold down costs. 2009 Average Annual Tuition and Fees, in current dollars $2,544 4 Year (public) 1,026 4 Year (private) 5,530 Max Pell Grant $26,213 2 Year (public) Student loans are a changin' For more than four decades, students have borrowed money from Uncle Sam to pay for college. That tradition continues this year, but with a twist: Starting July 1, all students who take out federal student loans will borrow directly from the federal government, instead of through a private lender. Remember, Uncle Sam is no pushover: If you fail to repay your loans after you graduate, you'll still face stiff penalties. A CLOSER LOOK AT STUDENT LOANS Direct Loan interest rates for academic year 2010-201l: 4.5% 6.3% 7.9% > Subsidized Stafford loans Unsubsidized Stafford loans? 22 offered to studente regardless of financial need Taneeds-based loans; PLUS loans A second provision in the bill sweetens a that cape program student-debt Annual loan limits for dependent undergraduate students: Direct Loan interest rates for academic year 2010-2011: Freshman Sophomore Third year and beyond pamente based on income and family $5,500 $6,500 $7,500 YER! but only for sige. students whe begin school in 2014 or later. Q & A Q: How much money will the government save? A: Taxpayers will save $68 billion over the next 11 years, according to the Congressional Budget Office. JAP! Q: How will this affect students and their parents? A: A chunk of the savings will go toward Pell Grants for college students to award more grants and to provide larger amounts. Community colleges and institutions with predominantly minority populations also will receive funding. Q: Will the changes bring down college costs? A: Sorry, no. Obama acknowledged as much before signing the bill when he urged colleges and universities to "do their part" to hold down costs. 2009 Average Annual Tuition and Fees, in current dollars $2,544 4 Year (public) 1,026 4 Year (private) 5,530 Max Pell Grant $26,213 2 Year (public) Student loans are a changin' For more than four decades, students have borrowed money from Uncle Sam to pay for college. That tradition continues this year, but with a twist: Starting July 1, all students who take out federal student loans will borrow directly from the federal government, instead of through a private lender. Remember, Uncle Sam is no pushover: If you fail to repay your loans after you graduate, you'll still face stiff penalties. A CLOSER LOOK AT STUDENT LOANS Direct Loan interest rates for academic year 2010-201l: 4.5% 6.3% 7.9% > Subsidized Stafford loans Unsubsidized Stafford loans? 22 offered to studente regardless of financial need Taneeds-based loans; PLUS loans A second provision in the bill sweetens a that cape program student-debt Annual loan limits for dependent undergraduate students: Direct Loan interest rates for academic year 2010-2011: Freshman Sophomore Third year and beyond pamente based on income and family $5,500 $6,500 $7,500 YER! but only for sige. students whe begin school in 2014 or later. Q & A Q: How much money will the government save? A: Taxpayers will save $68 billion over the next 11 years, according to the Congressional Budget Office. JAP! Q: How will this affect students and their parents? A: A chunk of the savings will go toward Pell Grants for college students to award more grants and to provide larger amounts. Community colleges and institutions with predominantly minority populations also will receive funding. Q: Will the changes bring down college costs? A: Sorry, no. Obama acknowledged as much before signing the bill when he urged colleges and universities to "do their part" to hold down costs. 2009 Average Annual Tuition and Fees, in current dollars $2,544 4 Year (public) 1,026 4 Year (private) 5,530 Max Pell Grant $26,213 2 Year (public) Student loans are a changin' For more than four decades, students have borrowed money from Uncle Sam to pay for college. That tradition continues this year, but with a twist: Starting July 1, all students who take out federal student loans will borrow directly from the federal government, instead of through a private lender. Remember, Uncle Sam is no pushover: If you fail to repay your loans after you graduate, you'll still face stiff penalties. A CLOSER LOOK AT STUDENT LOANS Direct Loan interest rates for academic year 2010-201l: 4.5% 6.3% 7.9% > Subsidized Stafford loans Unsubsidized Stafford loans? 22 offered to studente regardless of financial need Taneeds-based loans; PLUS loans A second provision in the bill sweetens a that cape program student-debt Annual loan limits for dependent undergraduate students: Direct Loan interest rates for academic year 2010-2011: Freshman Sophomore Third year and beyond pamente based on income and family $5,500 $6,500 $7,500 YER! but only for sige. students whe begin school in 2014 or later. Q & A Q: How much money will the government save? A: Taxpayers will save $68 billion over the next 11 years, according to the Congressional Budget Office. JAP! Q: How will this affect students and their parents? A: A chunk of the savings will go toward Pell Grants for college students to award more grants and to provide larger amounts. Community colleges and institutions with predominantly minority populations also will receive funding. Q: Will the changes bring down college costs? A: Sorry, no. Obama acknowledged as much before signing the bill when he urged colleges and universities to "do their part" to hold down costs. 2009 Average Annual Tuition and Fees, in current dollars $2,544 4 Year (public) 1,026 4 Year (private) 5,530 Max Pell Grant $26,213 2 Year (public) Student loans are a changin' For more than four decades, students have borrowed money from Uncle Sam to pay for college. That tradition continues this year, but with a twist: Starting July 1, all students who take out federal student loans will borrow directly from the federal government, instead of through a private lender. Remember, Uncle Sam is no pushover: If you fail to repay your loans after you graduate, you'll still face stiff penalties. A CLOSER LOOK AT STUDENT LOANS Direct Loan interest rates for academic year 2010-201l: 4.5% 6.3% 7.9% > Subsidized Stafford loans Unsubsidized Stafford loans? 22 offered to studente regardless of financial need Taneeds-based loans; PLUS loans A second provision in the bill sweetens a that cape program student-debt Annual loan limits for dependent undergraduate students: Direct Loan interest rates for academic year 2010-2011: Freshman Sophomore Third year and beyond pamente based on income and family $5,500 $6,500 $7,500 YER! but only for sige. students whe begin school in 2014 or later. Q & A Q: How much money will the government save? A: Taxpayers will save $68 billion over the next 11 years, according to the Congressional Budget Office. JAP! Q: How will this affect students and their parents? A: A chunk of the savings will go toward Pell Grants for college students to award more grants and to provide larger amounts. Community colleges and institutions with predominantly minority populations also will receive funding. Q: Will the changes bring down college costs? A: Sorry, no. Obama acknowledged as much before signing the bill when he urged colleges and universities to "do their part" to hold down costs. 2009 Average Annual Tuition and Fees, in current dollars $2,544 4 Year (public) 1,026 4 Year (private) 5,530 Max Pell Grant $26,213 2 Year (public) Student loans are a changin' For more than four decades, students have borrowed money from Uncle Sam to pay for college. That tradition continues this year, but with a twist: Starting July 1, all students who take out federal student loans will borrow directly from the federal government, instead of through a private lender. Remember, Uncle Sam is no pushover: If you fail to repay your loans after you graduate, you'll still face stiff penalties. A CLOSER LOOK AT STUDENT LOANS Direct Loan interest rates for academic year 2010-201l: 4.5% 6.3% 7.9% > Subsidized Stafford loans Unsubsidized Stafford loans? 22 offered to studente regardless of financial need Taneeds-based loans; PLUS loans A second provision in the bill sweetens a that cape program student-debt Annual loan limits for dependent undergraduate students: Direct Loan interest rates for academic year 2010-2011: Freshman Sophomore Third year and beyond pamente based on income and family $5,500 $6,500 $7,500 YER! but only for sige. students whe begin school in 2014 or later. Q & A Q: How much money will the government save? A: Taxpayers will save $68 billion over the next 11 years, according to the Congressional Budget Office. JAP! Q: How will this affect students and their parents? A: A chunk of the savings will go toward Pell Grants for college students to award more grants and to provide larger amounts. Community colleges and institutions with predominantly minority populations also will receive funding. Q: Will the changes bring down college costs? A: Sorry, no. Obama acknowledged as much before signing the bill when he urged colleges and universities to "do their part" to hold down costs. 2009 Average Annual Tuition and Fees, in current dollars $2,544 4 Year (public) 1,026 4 Year (private) 5,530 Max Pell Grant $26,213 2 Year (public)