Student Loan Provisions Signed into Law
Also in the health care reform bill part deux, …: Health Care and Education Reconciliation Act of 2010
Invests more than $40 billion in Pell Grants to ensure that all eligible students receive an award and that these awards are increased in future years to help keep pace with the rising cost of college.
Ensures that Americans can afford their student loan payments by expanding the existing income-based student loan repayment program. New borrowers who assume loans after July 1, 2014, will be able to cap their student loan repayments at 10 percent of their discretionary income and, if they keep up with their payments over time, will have the balance forgiven after 20 years.
Includes $2 billion over four years for community colleges to develop, improve, and provide education and career training programs.
Starting July 1, all new federal student loans will be direct loans, delivered and collected by private companies under performance-based contracts with the Department of Education.