<p>Facing big deficits and the prospect of painful cuts, school officials have been asking for their own federal bailout, and now Uncle Sam could be responding. The proposed federal American Recovery and Reinvestment Bill includes an estimated $141 billion for education. "It's the 'education community's' dream come true," blogs Mike Petrilli, vice president of the Thomas B. Fordham Institute in Washington. </p>
<p>....</p>
<p>Higher Education: . . . Pell Grants: $15.6 billion to increase the maximum Pell Grant by $500, from $4,850 to $5,350.</p>
<p>College Work-Study: $490 million to support undergraduate and graduate students who work.</p>
<p>Student Loan Limit Increase: Increases limits on unsubsidized Stafford loans by $2,000. . . .</p>
<p>Didn’t the Higher Education Opportunity Act passed in August 2008 already raise the Pell grant limits? Or was this a change in the maximum that still required funding?</p>
<p>Part A: Grants to Students in Attendance at Institutions of Higher Education - (Sec. 401) Sets the authorized maximum Pell Grant award at $6,000 for academic year 2009-2010, $6,400 for academic year 2010-2011, $6,800 for academic year 2011-2012, $7,200 for academic year 2012-2013, $7,600 for academic year 2013-2014, and $8,000 for academic year 2014-2015.</p>
<p>Oh, boy … another 2000 per year in unsub loans. Here is my feeling on this one: WAY too many students borrow loans with absolutely NO thought to how much debt they are accumulating or to how they will actually pay it back. I work in the business. I see this on a daily basis. Students are amassing staggering amounts of student loan debt. The majority of borrowers are completely clueless about the payback on these loans. Taxpayers WILL be bailing out these borrowers down the road, mark my words.</p>
<p>I’ve said it before, and I will say it again: Lowering tuition costs is the best option for ALL - not just students/parents, but taxpayers, as well.</p>
<p>sk8rmom - the budget and funding for things like the Pell don’t always seem to be in line with the amounts passed in bills. For instance the 2008-2009 maximum Pell was supposed to be $4,800. It actually ended up being $4731 (how random a number is that?). I would be surprised, though very happy, to see the Pell funded at the $6000 level for 2009-2010.</p>
<p>Ooh - seeing your name just reminded me to turn on the skating championships. I keep forgetting.</p>
<p>The part about “big deficits” and “painful cuts” could have been written at any time in the past 10 years. Why do colleges need a bailout now any more than they needed it in 2007 or 2004? The “free beer” attitude toward bailouts has got to stop. More government money will only accelerate the rate of college cost inflation and screw the taxpayers and those bound for college.</p>
<p>I agree with Kelsmom. HOw can they possibly consider increasing the loan limits??? How are these kids ever going to pay these loans back??</p>
<p>For some schools increased loan limits will mean less money in the form of institutional grants. At least that’s what I’m pretty sure it will mean at my son’s school.</p>
<p>I think that the unsub increase is a result of people complaining about the amount of money being taken out in private loans. While increased Stafford Loan limits aren’t a good solution to the current problem, for those relying on private loans to cover tuition, that $2000 will provide some relief, at least where the interest paid is concerned. Granted, though, I would rather see an increase in grants and a reduction of college tuition and fees instead.</p>
<p>^^^ I agree to some extent. I do realize that there are students who cannot meet their college costs with the current Stafford loan limits. Yet, I worry that a wholesale increase in the loan limits will just lead to more problems than it will solve.</p>