As you may have heard, the new health care law was passed along-side new laws for student loans.
According to the Daily Nexus, students borrow $23,000 to pay for college on average. While this may seem like a lot, it is nothing compared to the increase in earnings a graduate receives over a lifetime.
Although students are still willing to take on these loans, financial aid has stayed at the same level while the cost of post-secondary education has continued to rise. The new student loan laws are aimed at closing the gap between the amount of desired financial aid and the aid that is available.
Under the new law, funding will be increased for the Pell Grant program. The Pell Grant program provides aid to millions of students across the United States. The Daily Nexus reported that the new changes will prevent 500,000 students from losing their grants, and another 8 million from seeing their awards cut by 60 percent.
Under the new law, students will also enjoy the benefits of the income-based loan repayment plans. Graduates with federal loans will never be required to pay more then 10 percent of their monthly salary and their loan will be forgiven after 20 years.
This investment in education is great news for current and future students. Furthermore, any investment in education is an investment in the future of the United States. To make things even better, this investment is not costing American taxpayers any money. By removing banks from the federal student loan process, the federal government no longer has to pay subsidies to these financial institutions. The savings generated from their removal, covers the cost of the new investment in education!