Student Loan Reform 101

What the new law, shoehorned into the health care bill at the eleventh hour, means for college kids.

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Also read: The rest of the 2010 MoJo Mini College Guide, plus the 2009 MoJo Mini College Guide.

Congress reformed more than just health care this year. Below, four ways the Student Aid and Fiscal Responsibility Act affects you:

 Your federal Stafford Loan will now be made directly by the Department of Education, saving the government tens of billions it used to pay in administrative fees to companies like Sallie Mae.

 If your parents’ combined income is less than $50,000, you qualify for a Pell Grant (PDF), and your yearly scholarship will increase by as much as $425.

 Community colleges and historically black- and minority-serving schools will get grants totaling $4.5 billion to use at their discretion.

 Once you finish school, your loan payments can be no more than 15 percent of your monthly salary. Students borrowing after 2014 will have to set aside only 10 percent of their paycheck for loans.

Also read: The rest of the 2010 MoJo Mini College Guide, plus the 2009 MoJo Mini College Guide.

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Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

payment methods

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