President Barack Obama's American Graduation Initiative will add $5 million for two-year college graduates by 2020. For students attending community college, there will be an additional $10 billion available.
The legislation is designed to help "students afford and succeed in college," Obama said in a speech at a community college in Troy, N.Y., last September.
During the next 10 years, Pell grants will increase by $40 billion. Pell grants are sponsored by the U.S. Education Department, which awards financial aid to low-income students. The new maximum of the grant will rise to from $4,050 to $5,550.
Immediately, the Student Aid and Fiscal Responsibility Act will provide the following:
• Allow students and their parents to borrow money to help pay for college through programs supported by the federal government.
• Offer lower interest rates and better repayment benefits and options than private student loans.
• Loans are available to students and parents that need help paying for college – in many cases, regardless of income level or credit history.
AC students expressed different opinions on the legislation.
John Chapman, a criminal justice major, said building up community colleges will help those colleges remain inexpensive to attend.
"Setting aside money for community colleges is helpful since there are many students who cannot afford it," he said.
Because of the failing economy, many households' incomes are dropping, causing a rising demand for the Pell grants. The increase in grant funds will allow more low-income students the opportunity to attend an affordable college.
"I’m sure it will help those who cannot get scholarships or grants," said nursing major Holly Scott.
Elizabeth Richard, also a nursing major, has a differing opinion. She wondered if the legislation has all the information that an average student would need to make a good fiscal decision about student aid.
"Is $40 billion enough when you consider how many students are attending college and those who will be attending in the future?” Richard said.
The legislation also provides that interest rates will become variable up to 6.8 percent in 2012, and it simplifies the application form.
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