Document Number: 6146Easy Money: How Congress Could Increase Federal Student Aid Funding at No Additional Cost to Taxpayers - By enticing colleges to participate in the direct-lending program instead of the guaranteed-loan program, the federal government could provide low-income students with an additional $300 billion a year, according to this report. The authors argue that the maximum Pell Grant award could increase by $600 next year by passing legislation that redirects subsidies currently going to student-loan companies to needy students instead. The report also claims the proposed "Student Aid Reward Act" could generate $4.4 billion in new federal money next year if colleges and universities switched to the more cost-effective Direct Loan program. A section that details state-by-state savings is included. (American Association of Collegiate Registrars and Admissions Officers, State Public Interest Research Groupsí Higher Education Project, U.S. Student Association, May 2005)...
Related IssuesPostsecondary Affordability