Today students are the big winners in student aid. As it gets more difficult to pay for college, Washington state and the federal government have really stepped up to help.
At the federal level, Pell Grant maximums go up to $5,350, and federal loans become less expensive for current students and for some students paying off their loans.
Interest rates for subsidized loans to current students drop to 5.6%. These are the first loans students should pursue — you don’t have to pay interest while you’re in college; in fact the federal government pays it for you so it isn’t even tacked on at the end!
For students currently paying student loans, income based repayment just became available. That means, you pay a certain percent of your income rather than a fixed amount. When you’re just out of college a $400 monthly payment is much harder to make than after 10 years out. Under this program, your payment will be lower when you’re just out of college than it will be as your income increases. And, the cherry on top is that after 25 years, what you haven’t paid is forgiven. If you’re in certain service jobs, your loan could be forgiven as early as 10 years.
Here in Washington state, even with the difficult budget situation, the legislature strongly supported students by significantly increasing student aid. Eligible students at ICW colleges will receive up to $6,876 in 2009-2010.
The combination of the increases in federal aid, the increases at the state level, efforts our member colleges are making to increase aid, and ICW’s generous donors make a high quality liberal arts education possible for students in Washington.
To apply for any of these programs go to www.fafsa.ed.gov
