Bill increases access to federal student loans

WASHINGTON – A bill to ensure Rhode Islanders continue to receive critical federal aid to pay tuition bills has been introduced by Sen. Jack Reed and Massachusetts Sen. Edward Kennedy.
The Strengthening Student Aid for All Act of 2008 will help ensure that students from middle- and low-income families have the best and most-affordable options available to pay for college, the senators said.
The Strengthening Student Aid Act reduces the need for students to take out expensive private loans by increasing access to guaranteed, low-interest federal student loans, the senators said. The bill would increase federal loan limits by $1,000 annually for dependent undergraduate students and by $2,000 annually for independent undergraduate students.
The bill also reduces low-income families’ reliance on loans by increasing the maximum Pell Grant for the lowest-income recipients by up to $750 above the maximum award or $4,731 for the 2008-2009 school year.
The credit crunch is making it more difficult for lenders in the federal student- loan program to raise the capital to make loans. This legislation allows the federal government to intervene so that banks and student loan companies can continue their service to students. &#8226