While as student loans might obviously not be directly related to the new health care bill that is being processed by the Obama administration, there may be some closely related ties to the two that you missed. The health care bill is said to cover those of you in the United States who don’t already have a health care plan. It is primarily for the citizens who are less fortunate and have not been able to purchase health care.
Therefor, if you have been fortunate enough to afford health care either through a policy that your area of work has set in place for its employees or perhaps maybe you have purchased health care through a policy away from work, the new bill will not directly affect you.
Student loans have long been available to anyone who may be able to apply, properly use the student loans for college or other educational purposes, and then begin to pay back the loans only once their education has reached its end term. Now if your thinking logically, the health care bill should have no direct relation to any student loan policies, but we have seen stranger things happen in Washington haven’t we?
Pell grants have been in place over the years to provide extra financing to low income students. Well just recently the education department has said the the recent Pell program is expected to run out of money in the upcoming years. What does this mean for low income students? Well, it means that their not going to have any government supported money given to them anymore ultimately causing more students to need to apply to student loans or look elsewhere for their money.
Now, the health care bill does not make any changes to existing student loans either but it does lower the maximum amount you can pay per month on your loans. The new bill will bring down the maximum amount you are allowed to pay per month from 15% of your total loan down to 10% also shortening the amount of time you have to pay back your loan from 25 years down to 20 years. Parents and students should take every necessary step to check into other sources of income for college such as grants and federal loans because they will be able to utilize these areas for funds.
Grants and federal loans have long been available for students to increase the amount of financial help available to them at the time of applying and entering college. Student loan companies are fighting the new bill because it can benefit students who may be applying. Anything that is going to bring down the company and lesson their profit is obviously going to hold and argument. The health care bill undoubtedly lessons the burden of student loans and can be seen as a satisfying addition to the loan process for students.
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Tagged With Federal Grants, health care bill, obama, Student Loans
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ReplyDeleteHealthcare Finance | Medical Loans