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Written by Anthony P Stine   
Praise Dubya
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Okay, maybe not...
Bush with a halo
In 2007, Congress passed sweeping reform of existing student loan laws under the College Cost Reduction and Access Act. These reforms were signed into law by President Bush and went into effect July 1, 2009. The effect this legislation will have on undergraduates is the increase of the Federal Pell Grant by $619, to a total of $5350. While the Pell Grant increase is good news for college students from the lowest income brackets, the most important part of the CCRAA is the student loan forgiveness program. It calls for total forgiveness of student loans after ten years from graduation if students work in city or state government, education, or the ultimate corporate job: the military. To qualify, payments must be made on time during the ten year period.

Finally, the CCRAA lowers interest rates on federally-subsidized undergraduate loans every year. This year interest rates were lowered to 5.6%, down from 6%. This rate applies to loans borrowed after July 1, 2009 to July 1, 2010. Most importantly, the CCRAA places a cap on the maximum amount that students can be forced to pay on student loans at 15% of total income, with whatever remaining debt being forgiven after 25 years. Thanks Dubya, nice job taking the edge off your presidency. -g

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