Government Increases College Grants
Pell Grants will increase $500 in 2009 to $5,350 and $200 in 2010 to $5,550. Pell Grants are awarded to students seeking a bachelor’s degree. Most students demonstrate extreme financial hardship, with over half of the recipients’ families making less than $20,000 a year.
The number of Perkins Loans awarded will also be increased due to an additional $4 billion in funding included in the 2010 budget. Perkins Loans are low, fixed-interest (%5) student loans for undergraduate and graduate students with “exceptional” financial need. The loan doesn’t start gathering interest until after the student is out of school. As of the 2009-2010 school years, students are eligible for the following loan amounts:
• Undergraduates can receive up to $5,550 in loans each year up to a lifetime maximum of $27,500.
• Graduates can receive up to $8,000 in loans per year up to a lifetime maximum of $60,000.