H.R. 5715 which Bush is set to sign, takes away $2,000 per year of 'free money' from families who qualify for need-based aid.
(BOCA RATON, Fla.) - In 2007, the College Cost Reduction Act (H.R. 2669) increased both the Pell Grant (benefiting students) and the Stafford Loan (benefiting colleges & lenders). While there are far more Stafford borrowers than Pell recipients, the rich got richer at the expense of those less affluent.
Now, in May, 2008, the student loan crisis is taking another turn which will be reinforced by federal legislation (H.R. 5715). Once again, to no one’s surprise, the big winners are the colleges to the tune of $8,000 per student borrower.
"President Bush is about to sign legislation that has been passed by both the House and Senate," reports college admissions/financial aid expert, Reecy Aresty, "and when he does it will simply add fuel to the fire and make the student loan crisis that much worse."
Aresty, author of, How To Pay For College Without Going Broke, stated, "H.R. 5715 takes away $2,000 per year of 'free money' from families who qualify for need-based aid. Increasing the Stafford Loan by $2,000 per year will benefit the loan providers with additional interest and bring a windfall to the colleges of up to $8,000 per student," he said.
The 29 year veteran of financial aid trench veteran offered these solutions:
• Families need to be educated on how to legally qualify for maximum financial aid in the first place, and
• A federal grant is crucial for families who qualify for need-based aid, but whose income is too high to qualify for a Pell Grant
Reecy Aresty is founder and president of College Assistance, Inc. in Boca Raton, Florida. In a career spanning three decades, he has helped thousands of families send their kids to the college of their choice for less than they ever dreamed possible.
Group Says New Law Will Cost College Families $8,000Salem-News.com