Health Bill Is Rx for Student Loans, Too

(CBS) Part of the Democratic health care reform was sent back to the House of Representatives Thursday because of two minor changes to a section of the bill that has nothing to do with health care.

In fact, until now, many people didn't know that tucked into the health care bill are some of the most sweeping changes in decades in a different area - helping students pay for college.

CBS News correspondent Ben Tracy reports Colin and Corey Fequa are caught in the middle of the fight raging in Congress. They had to drop out of Delaware State after racking up a combined $55,000 in debt for tuition, room and board, and books - in just two years.

"You need some type of degree to go far and get some type of career," Corey Fequa said.

For their single mom, Karen, the college costs were crushing.

"I try to be a good mother," she said. "I felt I failed as a mother."

But now they may get help from the health care bill. The new law includes $36 billion for Pell Grants, free government funds given to 6 million low-income students. The maximum Pell Grant would jump from $5,300 this year to nearly $6,000 by 2017. Without the new law, it would have dropped to $2,150 next year.

"It adds up to $1,600 over four years," said Lauren Asher, president of the Project for Student Debt. "That's a lot of money that people won't have to borrow and will help them pay for college."

SCOTUS Confirms Chapter 13 Can Include Student Loan

On March 23, 2010, the U.S. Supreme Court issued a 9 – 0 opinion in United Student Aid Funds, v. Espinosa (08-1134) in which the Court affirmed the 9th Circuit’s holding that a chapter 13 debtor can obtain a discharge of a student loan by including it in a chapter 13 plan, if the creditor fails to object after notice and opportunity to do so, and the BK court enters an order confirming the chapter 13 plan. In bankruptcy, a student loan is not discharged unless the bankruptcy court makes a determination that excepting the student loan would be an undue hardship on the debtor. Under Bankruptcy Rules, the court is required to make such a determination in an adversary proceeding — a lawsuit within the bankruptcy case. In Espinosa, the debtor did not bring an adversary proceeding. Rather, the debtor put in his plan that only the principal amount of the loan would be paid through the plan, but that accrued interest would be discharged. The student loan lender did receive a copy of the plan, and even filed a Proof of Claim. But, the lender did not object to confirmation.

Please see full article below for more information.

Schools aim for consensus on future of student aid programs

In order to settle the current battle regarding the distribution of scholarship money in the Access Missouri program, officials from 10 universities have gathered to try to reach a consensus on the issue.

“The public universities decided that the current distribution of scholarship money is unfair to their students involved in the program,” said Rose Windmiller, director of state relations and local government affairs and Washington University’s representative in the 10-person group.

Currently, the scholarship awards a maximum of $1,000 and a minimum of $300 to students enrolled in two-year Missouri public schools. It is giving a maximum of $2,150 and a minimum of $1,000 to students at four-year Missouri public schools and Linn State Technical College. Additionally, students enrolling at Missouri private schools can obtain a maximum of $4,600 and a minimum of $2,000.

Student Aid and Higher Education in Texas

Round Rock, TX February 24, 2010 TG has published the February 2010 edition of the State of Student Aid and Higher Education in Texas, which provides key facts on college access and success for Texas families and students. The annual publication offers a picture of Texas’ higher education landscape, including state versus national educational attainment levels, college costs, financial aid programs, and student indebtedness.
“The State of Student Aid presents a comprehensive view of higher education in Texas, with an in-depth look at student population, financial aid needs and borrower data,” said Sue McMillin, TG President and CEO. “The report is an important resource for state and federal leaders who are working to ensure students have the means to get a quality postsecondary education.”
The updated report offers new information, such as the percentage of Texas high school graduates enrolling in college, college enrollment by ethnicity and income levels, credit card debt, and students’ reasons for not applying for financial aid assistance.
“Our analysis provides insight into the barriers that Texans experience trying to complete a college education,” said McMillin. “We believe the State of Student Aid report can help the higher education community understand and help meet those challenges.”
The publication is available at http://www.estudentaid.com/
TG is a public, nonprofit corporation that helps create access to higher education for millions of students and families through its role as an administrator of the Federal Family Education Loan Program (FFELP). Its vision is to be the premier source of information, financing, and assistance to help all families and students realize their educational and career dreams. Additional information about TG can be found online at. This press release can be downloaded from http://www.estudentaid.com/

KU sets financial aid event

Area high school students who want to learn more about financial student aid for college can get help at an event this weekend on the Kansas University campus.

“We have volunteers who can pretty much answer any question imaginable,” said Jennifer Gay, a KU financial aid counselor.

College Goal Sunday, coordinated by the Kansas Association of Student Aid Administrators, will be from 2 p.m. to 4 p.m. at Joseph R. Pearson Hall, 1122 West Campus Road.

Gay said that typically 30 to 40 area students and their families attend. Financial aid advisers can help students fill out a Free Application for Federal Student Aid, or FAFSA. Gay said the event is geared toward helping minority or first-generation college students. Thirteen sessions are planned for the same time Sunday across the state.

Students and parents should bring 2009 tax returns and W-2 forms.

Students who attend the event can register in a drawing to win a $500 scholarship. In Lawrence, organizers will offer four of the scholarships to students.

Parking is available on the east side of the building, and participants can enter through the east door of the building.