Archive for the ‘Legislation’ Category
Thursday, September 27th, 2007
President Bush signed the law into affect. His major focus during the signing ceremony was the impact that it has on low to moderate income families. One of the benefits we love about the bill is that it is increasing the Pell Grant maximum up to $5400 per year. Pell Grants are offered as a need based grant that are not required to be paid back by the student. If you are in the process of consolidating, please check with your lender to make sure they are going to fund your consolidation loan. If not, you may be required to continue making payments on your student loans and begin looking for a new company to consolidate your federal student loans.
If you have any questions or need assistance in making sure that your loans are being handled feel free to email us directly at studentlsc@gmail.com
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Monday, September 24th, 2007
We at the Student Loan Service Center have had a number of inquiries about the ‘end of borrower benefits’ after the recent legislation (H.R. 2669 College Cost Reduction Act of 2007).
Contrary to the popular belief, the borrower will still be able to benefit by consolidating student loans.
Here is an example,
If you had $15,000 in federal student loans and have not yet consolidated your payment would be approximately $175. Even without the borrower benefit rate reductions, you can reduce your payment down to $134. You will save $41 or 24% reduction in payment! Your credit will also benefit, from this consolidation. (We will have a posting on this later).
The borrower though will no longer be eligible for the on time payment rewards or the cash back options so prevalent in the student loan consolidation arena.
Posted in General Discussion, Legislation, Loan Consolidation | No Comments »
Monday, September 10th, 2007
H.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.
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