H.R. 2669: College Cost Reduction Act of 2007 & Costs of College
Monday, September 10th, 2007H.R. 2669 or the College Cost Reduction Act of 2007 has been getting a lot of coverage in the news as of late. In a series of postings, we will try to educate students and parents alike on what this means to them.
To start with, how does H.R. 2669 College Cost Reduction Act of 2007 affect you, the student or the parent paying for college?
For those of you who do not know, H.R. 2669 College Cost Reduction Act was introduced on June 12th by Senator Kennedy. The bill has recently passed through congress and is now awaiting the president’s final signature of approval. The great news is this bill focuses on making college more affordable to you by cutting subsidies to FFEL program loan providers, increasing Pell Grant limits, establishes the Teacher Education Assistance for College and Higher Education Grant program (TEACH), forces Federally backed student loan interest rates to be cut in 1/2, allows for certain armed forces members to obtain special deferment rights, and allows for an income based repayment schedule upon graduating or separating from school.
Is there a negative?
Potentially yes, even though it does sound too good to be true. With the reduction in subsidies paid to lenders and reducing the amount of the loans that are guaranteed many lenders may choose not to offer Federally Backed Student Loans. It is going to make navigating through this crazy world of financial aid just a little more difficult.
We at Student Loan Service Center are still assessing the impact this bill will have on the Financial Aid world and will keep you posted. Meanwhile, please, feel free to contact us at studentloanprimer@gmail.com if you have any questions or comments.
