Financial Aid Reform
Due to the size of the student loan industry and the complexity therein, Congress is continually making changes and working to improve access to financial aid for all Americans. We know these changes, bills and pieces of legislation can be confusing and we are dedicated to simplifying the information for you. If you have any questions about what you are reading or want to know more, don't hesitate to post a question in our Financial Aid Forum or read some of our hundreds of blogs on financial aid.
The Student Aid and Fiscal Responsibility Act, signed into law by President Barack Obama, is meant to improve access to federal financial aid for needy students. It contains several provisions and improvements to existing programs and earmarks for a variety of financial aid initiatives from improving financial aid access at minority-heavy academic institutions and bolstering state scholarship & grant funds.
Of these changes, the following directly impact students and will incrementally reform the student aid industry between now and 2014:
- Elimination of the Federal Family Education Loan Program (FFELP)
- Improvements to the Income Based Repayment (IBR) Program
- Expansion and Enhancement to the Federal Pell Grant Program