The College Cost Reduction and Access Act will help needy family get student loans. More future candidates for student loan consolidation. The student loan department at your local college will have another option to offer. Of course, the best student loan is the best student loan you can get.
“I have the honor of signing a bill that will help millions of low-income Americans earn a college-degree,” Bush said in a ceremony, with lawmakers and students by his side.
Not everyone that gets a student loan with need a college loan consolidation, maybe this will be a good thing. My wife went to college on Pell Grants. The legislation boosts the maximum Pell grant, which goes to the poorest college students, from $4,310 a year to $5,400 a year by 2012. You don’t need student loan debt consolidation when you get a grant, as it isn’t a student loan, but more of a student gift.
“Pell grants send an important message to students in need,” Bush said. “If you work hard, and you stay in school, and you make the right choices, the federal government is going to stand with you.”
The bill also cuts in half the interest rates on federally backed student loans — from 6.8 percent to 3.4 percent — over the next four years. Any cut in student loan consolidation rates is good news, this cut in the student loan rate is very positive news.
The law also caps monthly student loan payments. Maybe there will be less of a need for college loan consolidation now. Borrowers with new and existing student loan debt will be eligible to enter into income-based repayment starting July 1, 2009.
No need to consolidate student loans for public service workers, such as nurses or firefighters. They will receive loan forgiveness after 10 years of service and student loan payments. People will be able to take advantage of this beginning Oct.1.
This is all bad news for student loan companies, private student loan consolidations, and college loan consolidation companies.
“Odds favor a second blow to the student loan industry, should a Democrat win the White House,” said Jaret Seiberg, an analyst at financial services firm Stanford Group Co.
Oh well.
