Biggest victory for student aid in more than a decade

From Kat Barr, Rock the Vote's Director of Education:

If you’re dreading the tens of thousands of dollars in debt you’ll rack up as a side order to a college diploma, listen up: things just got a bit brighter.

Today, Congress passed the biggest reform to college student aid in more than a decade. The Senate voted 79-12 in favor; the House of Representatives voted 292 to 97. The White House is expected to sign it into law soon.

The bill contains a number of great things for young adults. A couple highlights below:

• The maximum Pell Grant – the program that helps five million students pay for college each year – was upped by $490 next year and will bump up by $1,090 over five years. Right now, the max you can get is $4,310; five years down the road, it’ll be $5,400.
• Instead of paying back student loans based on how much you owe (how it works now), this bill allows grads to pay back based on their income. Basically, if you’re an investment banker, you’ll pay at a rate that makes sense for your six-figure salary – but if you’re an elementary school teacher, you’ll pay back at a rate that doesn’t break your bank.
  

There’s more – lowered interest rates on federal loan repayment, for instance – and if you want to know more, check out http://www.studentdebtalert.org, http://projectonstudentdebt.org, or http://www.ticas.org.