College Admissions Counseling Blog

President Bush today signed legislation today that will help low income and middle income students pay for college. The amount available under the Pell grant will increase over the next 5 years from the current $4,310 to $5,400 a year. While it is also helpful to have more money available for the Pell grant which is for the lowest income families, the reality is that the increasing costs of college will more than offset any minor increase in the Pell grant.

The other part of the legislation decreases the interest rate on federally backed student loans from the current 6.8% to 3.4% over the next 4 years. This is a direct benefit to those students who borrow to pay for their college education. While the benefit from this legislation will most likely be touted by both sides as evidence of their commitment to higher education, I would like to see even greater contribution to higher education by the federal government. Higher education is so critical today that it is incumbent on the government to be fully involved in helping students afford this education. Will it potentially increase taxes? Yes, but one of the critical jobs of the government is to help educate its populace. I think this is money well spent.