Will New Bill Help Lower College Costs?

The Ensuring Continued Access to Student Loans Act of 2008, passed by the Senate on Wednesday (April 30^th), would let parents and students borrow more from the government. It could also boost grants for some needy high achievers.

The House has passed its own version of the bill. Here's a rundown on the proposal and how it could affect you:

• House and Senate leaders agreed to provide more government backing for so-called unsubsidized Stafford loans. This is likely to save students millions of dollars by letting them forgo costly private loans.
• The bill is projected to make money for the government -- $450 million over five years. Lawmakers agreed to use those funds to boost grants for needy students.
• Parents now can borrow under the Parents Loans for Students program, known as PLUS. The catch with a PLUS loan is that borrowers must start repaying within 60 days of disbursement. This legislation would let parents defer repayment while their child is in school. The bill also broadens the definition of parents with an adverse credit history, allowing more parents to be eligible to help their kids.

To read more about this Act and to keep up on the changes being made, go to: http://edlabor.house.gov/micro/loansact.shtml