01.27.09

Stimulus Package in House or Representatives

Posted in Grants, Legislation affecting students, Saving for College, Student Loan News, The Financial Aid Process tagged , , , , , , , at 1:46 pm by moniqueleonard

The version of the stimulus package currently before the House of Representatives has the following higher-ed related provisions:

  • Increase the Pell Grant  by $500 from $4,850 to $5,350;
  • Increase work study funding by $490 million;
  • Increase student loan limits on unsubsidized Stafford Loan by $2,000;
  • Provide $50 million to the Department of Education to help them administer student aid and loan programs.

11 Comments »

  1. Jackie Lethridge said,

    How will the Stimulus plan help graduated student that are in financial trouble with a Sallie Mae private student loans?

  2. Jake said,

    Yeah, will someone answer Jackie’s question? I would like to find out if this Stimulus plan can help graduates like us.

  3. Hi Jackie and Jake,
    I’m not aware of any provisions aimed directly at graduates or people with private student loans, but I think you’ll benefit from the tax credits. If you’ve graduated this year, you can take advantage of the higher tuition tax credits.

    You’ll want to talk to a tax professional to get more detail on how exactly these will work. Taxes are not my strong point – I despise doing taxes as much as the next person.

  4. jennifer hawkins said,

    I have outstanding student loans including $23,000 unpaid interest due to finanical hardship and difficulty towards paying the loan. I am a 2003, graduate student level and licensed professional counselor. What provisions are available.

    Thank you.

    • Cody said,

      No with a big capitol NO!!!
      Sallie Mae is under investigation for underhanded tactics.
      I borrowed from Sallie Mae also. They do not wait to try to collect
      until the grace period ends to attempt collection.
      Where did all that STIMULUS MONEY Sallie Mae got go to?
      Who benefits? Very few students. Perhaps like the bank CEO’s?
      RIGHT????

  5. Jennifer,
    Are your loans federal or private? If you have federal loans, you have a greater likelihood of getting help.

    Here are some things you can try:
    1) consolidate your loans – consolidate private loans separately from federal loans; this will make monthly payments lower
    2) apply for a deferment – you will need to contact each lender separately, and you’ll have more luck with federal over private
    3) apply for a forbearance – again, you will need to contact each lender separately, and you’ll have more luck with federal over private

  6. Alan Ogard said,

    Did I hear that Obama was helping poeple pay for school if they went back to school because they were starting a new career?

  7. Cookie said,

    My husband signed for a Plus loan for our son to attend our area private college. We have been in default for a number of years due to a failing business, which has since gone under. We are in Chapter 7 bankruptcy. My husband is 62 and is self employed working part time.Our son will not voluntarily take any reponsibility for this debt. My question- is there anyway to get the loan transfered to our son to repay.

    • Sorry Cookie, but there is no way to transfer the debt of a Parent PLUS Loan to the student, as they are borrowed solely by the parent.

  8. Gerri said,

    My daughter has $50,000 in student loans. She is graduated and has a full time job but the loan payments are making it difficult to make ends meet. It is my understanding there is a new stimulus that will forgive part of the student loans for graduates.


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