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Congress recently passed the Student Aid and Fiscal Responsibility Act of 2009, which dramatically overhauls the financial aid system.

The biggest change is barring private lenders from issuing federal student loans. That means all Stafford, Perkins, and other loans will now be issued exclusively by the federal government. Federal loans come with more generous payment options and lower interest rates than private loans, which means saving thousands in interest. Pell Grants are also set to increase. Students awarded Pell Grants today receive $5,500, but the amount will increase each year over the next decade to $6,900. The increase is meant to keep up with the rising cost of tuition and make college more accessible to low-income students.

In addition, the FAFSA form required for federal aid has been simplified and streamlined making it easier than ever to receive college aid. If you’ve been holding out on going to school because of money, you can receive thousands of dollars from the government to finance your education. Start your search now for schools and degree programs knowing it’s possible to achieve your goals!


Keith Lipke

The Hope Chest