Paying for College

In a show of support for college students nationwide, H.R. 5715 was signed into law yesterday in the hopes of addressing some of the impending problems in the student loan industry.  The Senate utilized a unanimous consent procedural motion which allowed it to be moved along without holdup.  The entire Bill can be viewed here…. H.R. 5715.

Some of the highlights of the Bill are the following:

The amendments made by this section shall be effective for loans first disbursed on or after July 1, 2008. For students enrolled as regular students in eligible programs:

• The bill introduces an additional unsubsidized Stafford annual limit of $2,000 for undergraduate dependent students.
• The bill increases the additional unsubsidized Stafford annual limits by $2,000 for dependent students whose parents are unable to borrow a PLUS loan. (Previously 1st and 2nd year students would qualify for an additional $4,000, but now will qualify for $6,000. For students who have successfully completed their first two years, the limits will increase from $5,000 to $7,000.)

• The bill increases the additional unsubsidized Stafford annual limits by $2,000 for independent undergraduate students. (Previously 1st and 2nd year students would qualify for an additional $4,000, but now will qualify for $6,000. For students who have successfully completed their first two years, the limits will increase from $5,000 to $7,000.)

• The amendatory language has designated a separate category for graduate and professional students; these students will not see any annual limit increases. Their additional unsubsidized Stafford annual limit remains $12,000. (Previously the Senate sought to increase annual limits for graduate students, but that provision did not make it into the final bill).

• The bill increases aggregate unsubsidized loan amounts for undergraduate dependent students from $23,000 to $31,000 (minus subsidized borrowing)

• The bill increases aggregate unsubsidized loan amounts for undergraduate independent students from $46,000 to $57,500 (minus subsidized borrowing)

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