Pell Grant Shortfalls

Reader comment on: Student Loans and Health Reform

Submitted by collegeloanconsultant (United States), Mar 12, 2010 20:11

At last the reason for the student loan bill is finally clear, though. The initiatives that have been enacted for the past two years in the Pell grant program have to be paid for somehow. Things like: 2 awards in one year (with a 9-year cap), raising the income ceiling for a maximum award, funding less than half-time enrollment and, of course, raising the award amounts, have to be paid for. This shortfall had been planned for years and everyone knew that the elimination of the FFELP and the elimination of subsidies for low-income Perkins loans were how they were going to pay for it. But who is going to pay for these things after a couple of years, when students with good credit cosigners start taking out private loans instead of federal ones, because the rates will be lower?

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