Stimulus Bill Raises Loan Limit by $2000

According to Andrew Kreighbaum of the Elpasotimes.com, the stimulus bill that recently passed the Senate (but still must go through the conference process), raises the federal Stafford student loan amounts.

Under the House bill, the amount a student could borrow from federal Stafford loans would increase by $2,000, allowing them to avoid taking out additional private loans with higher interest rates.

Additionally, poor students will be able to take advantage of the Hope Tax Credit and Lifetime Learning Credit according to the article.

We are completely for grants and credits - though we understand economics means that colleges will immediately raise prices by the same amount unless controlled.

Also, we have mixed feelings about the higher federal loan limits. It is good that students do not have to take a higher priced private loan, but again, if the colleges simply raise the tuition by a corresponding amount, the students suffer in the long run.