Guide to Education Grants

Another Student Loan Resource:
According to the April 23, 2007 article by Paul Basken, titled “New Rules Are Designed to Streamline Flow of Federal Student Aid to Colleges and Students” that appeared in The Chronicle of Higher Education:
                     
“Representatives of the U.S. Education Department, colleges, higher-education associations, and business have agreed on a package of rule changes designed to streamline the flow of federal student aid to both colleges and students.
 
“The package, which a panel of negotiators approved without dissent on Friday, includes provisions to encourage institutions to make greater use of bank debit cards to distribute money to their students.”
 
Bank Cards to Modernize System, Provide Quicker Service
 
This is a wonderful development, one which hopefully will be implemented. Soon, we may be able to welcome federal student aid into the 21st century. So far the changes have received support of student advocates and those who are the watchdogs of the federal student aid industry.
 
The article reported, “Student advocates back the change, even though it might give colleges the ability to hold their funds somewhat longer, said Rebecca Thompson, a member of the negotiating panel who is legislative director of the United States Student Association.
 
“‘It is so efficient and effective’ to use the bank cards in place of the current system in which many colleges send checks to students, Ms. Thompson said.”
 
Apparently, the money that the students may receive via debit cards will be used for expenses above and beyond tuition, and will include certain protections for students, as reported in the article:
 
“The money provided to students represents the difference between the federal grant and loan money they receive and the amount that the college keeps for tuition and fees. That remainder is used for purposes like room and board.
 
“The proposed new rules include protections for the students such as a requirement that the bank cards be widely usable, without withdrawal fees, said Brian Kerrigan, who led the negotiations for the Education Department.”
 
According to the article, Basken summarized other approved rule changes that would affect students:
 
·        “The agreement also changes the schedule by which the Education Department will release grant and loan funds to colleges for students who are attending less than full time.”
 
·        “The new rules also reduce the amount of federal money that the colleges can keep on their books without either giving it to eligible students or returning it to the Education Department.”
 
·        “The rules approved Friday also revise the calculation of Pell Grants to help colleges with unusually short terms.”
 
Talk to the education financial advisors at NextStudent. They have all the information and advice you need on student loans. Check out www.nextstudent.com.
 
Be sure to tune in next Tuesday for my next blog about this week in student loans.
 
Student Loan Girl
 
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This entry was posted on Wednesday, May 2nd, 2007 at 9:59 am and is filed under Education Funding News, Financial Aid, Money for College, Student Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.