Most knew or at least heard of the Health Care portion of the Reconciliation Act of 2010. But another part of this Act was education. This Act will have the impact of cutting commercial banking profits and increasing the Pell Grant. This reform is designed to save taxpayers over 61 billion in ten years.
If you are like many of the students that passed through college campuses you have racked up your fair share of student loan debt. In the quest for greater education many independent and dependent students have taken out grants and loans for amounts over $20,000. Essentially you may be able to cut some of this debt in half and effectively stopping the banks from profiting off a government funded program.
The Pell grant maximum distribution amount has been increased to $5,273 from $4,617 as part of this reform for the 2010 beginning school year. One portion of this is that instead of having monthly payments determined by the amount borrowed it will be decided according to your income. This would help borrowers to stay out of debt trying to pay loan amounts totaling more than they can afford at any given time.