<p>Link to the bill and Conference report on Sen. Kennedy's website. It's 119 pages long. Some highlights seem to include: phased-in reduction of loan interest rates for Stafford loans, etc.; setting annual repayment limits at 15% of student borrower's discretionary income (measured as extent to which income exceeds 150% of Federal Poverty Line--around $15,000 a year for one person, so for borrower earning $35,000 the limit would be 15% of 20,000 or $3,000); increase in Pell Grant amounts and changes in formula; loan forgiveness of balance for borrowers in public service jobs for 10 years who have been paying during that time (presumably at reduced rate if salaries are low), etc.</p>
<p>Apparently the President does not plan to veto.</p>
<p>What they aren't saying, but is true, is that many students will be paying higher fees under this legislation. Now many lenders pay the 1% fee borrowers are assessed for Stafford loans, and many guaranty agencies waive the 1% fee that they charge, but with the cutbacks the government is making on payments to lenders and guarantors, it is unlikely they will be absorbing these fees in the future. This means students will be paying upfront fees of 2% of the amount they borrow. This amount will be deducted from what they are eligible to borrow so they'll end up paying more and getting less. Nice work Congress.</p>
<p>Students and parents do not have the choice -- only some colleges use the direct loan program; for those that don't, the only option is a private lender. Unless there's something in the bill that provides direct loans for everyone(?)</p>