New Student Loan Bill: What Changes For Students

Q: Now that the new student loan bill has passed, what changes does this mean for me as a college student? Does this change the way in which I will apply through FAFSA for student loans from the government?

A: With the senate voting to remove private commercial banks from the federal student loan business, the actual impact that will be felt by college students will be little to none. There have been some concerns among college students regarding how the new student loan legislation will effect their student loan borrowing, and like I stated above, for the average college student very little will change.

Though private banks are being taking out of the federal loan lending equation, it is likely the government will hire many of the same banks (such as Sallie Mae) on a contract basis to service the loans, etc… For individual students and their families, you will still file your FAFSA like you have in the past, this does not change. You may actually see a small increase in the amount of the maximum Pell grant you (or your child) can receive. The only major change for the student is that you will now take out your loans from your college’s financial aid offices, instead of using a private bank (which for some of you, will not be a change at all). If you have any questions or concerns, please contact your schools financial aid office.