January 27, 2009

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 Joe From Boston


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.

26 Comments »

  1. Anthony Eller said,

    There will be no change when it took $7 Billion to elect the President and Congress in 2012 and now with the new rulings by the Supreme Court this amount is very likely to double in 2016!
    The now $1.2 Trillion Student loan debt will be the next bubble to bust if real solutions are not made quickly. We need to start with All Student Loan Consumer Protection Reinstated! If your not aware in 1978 bankruptcy was taken away from Federal student loan and then in 2005 Private student loan Bankruptcy were taken away…..I think you should know a gambler can declare bankruptcy?? How the heck is this even possible?
    The default rate of student loans is growing so fast that it won’t be long before more profits will be made off the defaults than the actual student loan
    The lenders have over the years had so many laws changed that more and more they are now the collection arm as well as the lender? Do you see where I’m going with this now????
    This is now about right and wrong not about policies that either the Republican’s or the Democrat’s who are really one in the same “IT”S ALL ABOUT THE MONEY” The American people no longer matter as long as these sorry excuses for our Great Country Representatives can get re-elected!!!!!!

    I know that every child deserves their opportunity to have an affordable education and the chance to live the American Dream! It’s time to give a hand up not a hand out!

    “A baby comes into this world with only hope….the only gold we will leave this earth with is our word”
    Anthony Eller

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  3. Ambrose Kalis said,

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  4. Molly Chagoya said,

    stimulus package are really needed right now since the economoy is quite slow these days. ‘

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  5. jonny said,

    fuck sallie mae, they change your rates and your monthly payments without even informing me. my loan payments for the first 2 years were 150 then out of nowhere i get a call from a debt collector saying i need to pay 12k by the end of the month or i could go to jail (which is odd cause ive been on auto pay since the beginning of it). after calling sallie mae they then informed me my payments were now almost 500 a month with never knowingly missing a payment and on top of that i was doubling my payments. fuck that company they need to be blown up and the head guys need to be exterminated from existance.

  6. Sabriya Sharif-Hanifa said,

    Is there a forgiveness program for mental health care graduates

  7. Lost and confused said,

    Seems the people in the middle,alway push up the people on top and keep them there. Where is the help for the working class? We pay our taxes too. Where is our helping hand? I have a 30,000.00 student loan that keeps adding up. I work,I make 7.25 hour part time. No other jobs in my area so something is better then nothing.

    Yes I,consolidated loans used deferment and forbearance.
    After my husband had open heart surgery, we fell flat on our face.

    Seems there is no help for us that need help.

  8. Mason said,

    My son Mason went to ITT for one year was suppose to be two years but could not finish due to how expensive it was to run 45 minutes to school every day. He now has loans through Sallie Mae. His Government load is getting paid monthly but the private loans are not due to my son is unemployed at this moment they will not defer payments or give a hardship they are hounding him and telling him he could go to jail. What can we do?

  9. XX Stevenson said,

    I am out of work, about 1 year is any stimulus package for me.

  10. denise burns said,

    i am looking for a forgiveness package for loans with citibank originally was with sun tech. Back in 2000, i attended Indiana Unv of South bend for nursing school and was not able to finish the program. In 2005 I attended
    college again at Penn state sharon Pa. branch for Physical therapy Assistant program. I just became unemployed Jan 4 and am looking for work. however the old loans i have from nursing school I feel are never going to get paid off. Im 48 yrs old and will be 80 yrs old before they are paid off . I put what classes i could to use. such as my sciences so i did not wast them. Im a single mom. i just bought a house in June and would like to know if the gov. is able to forgive the loans from Indiana Unv. Thnks,Denise Burns

  11. Jennifer St. John said,

    My daughter skipped 11th and 12th grade – went to a four-year university at age 18 enrolled as a junior. She double majored in three years with a 4.0 and now works in a full-time job. But has 50,000 in student loans and eats top ramen………..so what program is there to help out?

  12. wondering said,

    my son went to college, works for 13.00 and hour and has massive loans which it seems there is no help for – in the “stimulus” package. there is no way to get ahead with this holding him back. i don’t get it.

    • ray said,

      My son got a masters drgee in art tharapy but cannot find a jod and has been unemployed for 2 years he has a sallie mae loan which he can not pay can instrest be droped or somthing we live on a fixe income and cannot help

  13. 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.

  14. 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.

  15. 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?

  16. 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

  17. 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????

      • Kathleen said,

        Everyone with loans from Sallie Mae should know that you can not ask for various plans once your forbarence time runs out… Sallie Mae is definitely using questionable tactics… ask for a supervisor when calling and be sure you get one you can understand… if you can’t quite understand them…ask for someone else!!!

  18. 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.

  19. Jake said,

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

  20. Jackie Lethridge said,

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


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