How Will the Changes in the Federal Student Aid System Affect You?
As with most everything, the new changes in the Federal Student Aid System have both their positives and negatives for those currently within the education system. Meant to streamline loan programs, the new changes take some things away from the government grant program to give to the loan program. For many years, the United States has long held the reputation of being one of the best places to study and attend university. Students from around the world travel to America to attend universities with great reputations. These international students, who received top-notch university training, often return to their home countries to work. Some of these students have become professors at today’s international universities. Not all professors at international universities have an American university background though; many are simply great educators who were excellently trained in their own respective countries. Quality educators at international universities have greatly contributed to the rise in the reputations of those schools.
Lower Cost of Attending University Abroad
The cost of a university education in the United States is high. In fact, the average cost of tuition has risen by 28 percent over the last 5 years, and it is projected to keep increasing. Students are paying for the university’s high administrative overhead in addition to the actual salaries of the educators. Universities believe that the market can bear the increased cost because of the schools’ reputations and the expected job opportunities available to students upon degree completion.
For some this may be a boon, for others this comes at a cost. Read on to learn more about how these changes might affect you.
Restrictions on Pell Grants
One of the biggest changes in the new Federal Aid System is the restrictions on Pell Grants. While lower-income students can still receive $5,550 toward their education, these grants will only be accessible for 12 semesters instead of the pre-2012 18 semesters. This may adversely affect part-time and returning students who find it necessary to stretch out their education over several years.
Elimination of the “Interest-free” Grace Period
For the subsidized Stafford loan, there was once an interest-free grace period lasting six months after graduation to allow newly-graduated degree holders some time to do my research paper for me get on their feet. With the new changes, this grace period has been cut and loans will begin accruing interest the moment after graduation. While loan payments will still not be collected for those first six months post-graduation, the interest on the grace months will accrue and be added to the loan repayment amount.
Cutting Out Graduate School
Graduate students will no longer be eligible for subsidized Stafford loans. However, grad students can still take out unsubsidized Stafford loans at the rate of 6.8% accruing interest.
However, not all the changes are negative ones. While students may not be able to receive as much funding as was previously made available, repayment options have significantly improved.