President Obama Increases Pell Grant and Perkins Loan Limits
As part of the recently passed stimulus bill, President Obama announced that in order to help struggling families and students who can’t afford to go to college due to rising costs and a bad economy, both the Pell Grant and Perkins Loan limits would be increased to help compensate for these tough times. This is great news for struggling families trying to send kids to college, or for college students trying to pay their own way through college.
These increases in financial aid will be part of the 2010 budget, but you will see increases in 2009 as well. Pell Grants will increase a total of $500 in 2009 bringing the maximum amount of the reward to $5,350. 2010 will see another increase in the amount of $200 – doesn’t seem like much, but every little bit helps in a down economy. Pell Grants are awarded to students seeking a bachelor degree, and who can demonstrate a great amount of need for the grant.
Perkins Loans will see a big increase starting in the 2009-2010 school year thanks to $4 billion in funding from the stimulus package and national budget. Perkins Loans are low interest (5%) student loans that don’t start accruing interest until you are done with college. These loans are available to both undergraduates and graduates who can demonstrate significant financial need. Here are the new loan limits for Perkins Loans:
- Undergraduates – $5,550 per year up to a total of $27,500 throughout your academic career.
- Graduate Students – $8,000 per year up to a total of $60,000 for school.
These new financial aid increases should have a great effect on fall 2009 enrollment, although not everyone will qualify for the Pell Grant or Perkins Loans. The only way to find out if you qualify is to fill out the FAFSA form and let the government decide whether or not you qualify. The deadline for FAFSA applications for the 2009-2010 school year is July 1, 2009 (June 30 on the web), so your get your application in before it’s too late!
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