More Financial Aid For Students From The American Recovery and Reinvestment Act of 2009?
The House of Representatives passed the American Recovery and Reinvestment Act of 2009, an $819 billion stimulus bill yesterday on a party-line vote of 244 to 188. A similar bill will be debated in the Senate as early as this weekend, with the Senate Democratic leadership hoping to complete action by next weekend.
The major provisions of interest to students in the House bill include:
1) A $500 increase to the Pell Grant that would result in a $5,350 maximum award;
2) An increase in limits on unsubsidized Stafford loans by $2,000 per year; the $2,000 would apply to the 10% temporarily.
3) An amendment to the current Hope Scholarship Tax Credit and creation of a new American Opportunity Tax Credit of up to $2,500 of the cost of tuition, fees and course materials during 2009 and 2010. Forty percent of the credit would be refundable.
The current Senate bill that will go to the Senate floor contains Pell increases and a refundable tax credit provision (both slightly different than the House passed version), but does not include an increase in unsubsidized Stafford loan limits.
Once the bill passes the Senate, the House and Senate will have to convene a conference (much of which may be done in behind the scenes negotiating) to resolve the differences between the two bills before a final vote and sending the final bill to President Obama for his signature. The House and Senate Democratic leadership hope to have the conference the week of February 9 and get the bill to President Obama’s desk before mid-February – whether they can achieve that timetable remains to be seen.
Visit http://capwiz.com/career/home/ to write your Senators today urging them to support funding for students in higher education as part of the stimulus package.
