July 1, 2009
July 1, 2009 – Big Changes Take Effect Today
Welcome to the next fiscal year, and along with it come some great changes for borrowers.
- The maximum Pell Grant amount increases to $5,350 for the 2009-10 school year, a 13% increase from last year.
- The fees to originate a new loan fall by half of a percentage point. Next year, it will fall by that much again. The changes will free more money for those students to use for tuition.
- “IBR” plans come into effect – income based repayment. Borrowers may be eligible to reduce their monthly payments based on their income. Also, teachers or those working in other forms of public service can reduce their payments based on their public service salary.