While the FAFSA has long been a fixture in American colleges, universities, and schools, it wasn’t that long ago that the form and process was entirely different. New legislation passed by the Obama administration took effect in July, 2010 that significantly changes the FAFSA, or Free Application for Federal Student Aid.
Perhaps the most significant change is the elimination of the old FFEL program, or Federal Family Education Loan program. As of 7/10, all educational loans will be administered by the United States Department of education under the Federal Direct Student Loan Program. Students who still have FFEL balances can continue to pay them as planned, or may utilize a loan under the FDSLP to payoff and restructure the FFEL. By making this change, the Obama administration hopes to save $80 billion dollars over the next ten years. These savings will be reinvested in the educational system by bolstering grants and scholarships, and by funding opportunities for those with financial need.
Now that all student loans come from the Fed, the FAFSA has been streamlined, has fewer questions, and is less complicated. It’s also a one-stop-shopping document: filling out the FAFSA allows a student to apply for loans, grants, scholarships, and work study programs on one integrated form.
The FAFSA and its management were also changed as of July, 2010. The database system that stores student loan information has been streamlined and is managed more efficiently than previously. This means that your loans and other forms of student aid can be approved quickly.
No comments:
Post a Comment