The Higher Education Act of 1965 (Pub. L. No. 89-329) (the “HEA”) was a legislation which was signed into law in the United States.  The law was part of the then President Lyndon Johnson’s agenda and its aim was “to strengthen the educational resources of our colleges and universities and to provide financial assistance for students in postsecondary and higher education”. Not only did the law poured more money into Federal student loans but it also created the National Teachers Corps. Moreover, it also strove to give scholarships and low-interest student loans.

• The Higher Education Act of 1965 was reauthorized eight times and is set to expire in the year 2013. Changes which were made in the year 1998 included the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) and the denial of Federal student aid to anyone who has been convicted of drug charges. This is where the question no. 31 in the Free Application for Federal Student Aid (FAFSA) form originates which asks whether the student has indeed been convicted of any drug related offence(s).
• In 2003 many parts of the legislation were set to expire and many minority groups came together to ask for changes in the law. The objective of the group was to provide incentives for minority students and help them in getting into fields where they were underrepresented. However, the request to increase the amount offered in Pell Grants was denied by the senate. On the other hand some beneficial steps that were taken by the government included increase in the amount of funds made available and abolishing the grace period required for applying for a loan by educational institutions.
• In the year 2008 the Higher Education Opportunity Act was enacted which reauthorized the amended version of the Higher Education Act of 1965. It made major changes in student loan discharges for disabled people. Before, to be eligible for a discharge, a disabled person could have no income. This has been changed to a no “substantial gainful activity” test, which is the equivalent standard used by the Social Security Administration in determining eligibility for Social Security Disability Insurance (SSDI). The changes will take effect on July 1, 2010.
• The HEA was changed again in he year 2007 when many changes were made to student loans through the College Cost Reduction and Access Act (CCRA). These changes included increase in the amount of Pell Grants, capping the interest rate at 15% of a person discretionary income, enacting loan forgiveness for public servants in the Direct Loan program, and took steps to correct problematic practices in the lending industry.
• Therefore the HEA has made several changes to the way education is offered and at the cost at which it is offered in the United States. The law has been continuously amended since its inception and it seems like it is here to stay. The benefits derived from this legislation cannot be denied; however, it is a reality that education is still a costly affair in the United States and not many people can afford higher education.

If you have any additional facts or points about this topic, please feel free to leave a comment.

Stafford loans are fixed-rate student loans typically from the U.S. government. They are generally accessible at a lesser interest rate than private student loans or further categories of student loans. Stafford loans are offered by numerous different loan service providers, save for a federal direct Stafford loan that is a loan given directly from the U.S. Department of Education.

• A Stafford loan is offered to learners who are going to school no less than part time. Several Stafford loans, together with an explicit category of federal direct Stafford loan called a subsidized Stafford Loan; charges zero interest when the student is in school. These loans do not charge interest because the government subsidizes or pays the interest during that time. Other Stafford loans charge a low interest rate which the government subsidizes.
• When a person graduates, Stafford loans have an interest at a comparatively low rate. Stafford Loans, as well as the federal direct Stafford loan, typically have extensive settlement time, and can be put into adjournment or forbearance if a person starts to have monetary trouble. This means if one cannot shell out a federal direct Stafford loan, payments can be frozen without inviting a fine. In a number of cases, if the student is still in school or makes less than a definite income level, the government will even compensate the interest when the loans are postponed.
• There are a lot of diverse lenders that offer Stafford loans. A number of of these companies are private companies, who lend the capital and supervise the federal Stafford loans. The government even in such cases subsidizes the interest and guarantees the Stafford loan, even when a private business lends the funds. The private company is deemed to be the servicer of the credit, and the scholar makes payments to them.
• To submit an application for a federal direct Stafford loan, a person can apply directly to the Department of Education (ED). These ED loans, also known as direct loans, are offered and serviced by the government itself, as a substitute to a third party. Making use of Stafford loan funds directly from the government can be a intelligent financial progress as the Department of Education may present additional chances for loan exculpation and more constructive payment terms. Students may also obtain benefits such as a lowered interest rate for making punctual payments for a federal direct Stafford loan.

If you have any additional points regarding Federal Stafford loans please feel free to leave a comment.