Student Loans, Financial Aid Both Rise in 2009-10

According to a new report from the College Board, loans and other types of college financial aid is increased for the 2009-10 academic year, although this increase in student aid was outweighed by the costs of schools, which have increased about 6 per cent.

The College Board, in its annual report "Trends in Student Aid" report estimates that a total of 154.5 billion in student aid was distributed in 2009-10. Subsidies now account for about 50 percent of student financial aid from all sources, both federal and private.

In 2009-10, the average financial aid package for college student loans finance was almost $ 11 500. This figure includes more than $ 6,000 in scholarships and over $ 4,800 in loans guaranteed by the federal state. Graduate students have received financial assistance from a bit 'more, on average, in the form of grants - nearly $ 6400 - but also borrowed more. Graduate students have an average of $ 15 700 more in loans for higher education.

Grants

Compared with the figures for financial aid students for 2008-09, grant aid for college students increased by 22 percent, while federal loans has increased by 9 percent. For the 2009-10 academic year also saw an increase of 16 percent of the average federal Pell Grant award to $ 3,656, the largest increase from one year in the history of the program. Only about one quarter of all recipients of Pell Grants, however, qualified for the maximum grant of $ 5,350.

Student Loans

private student loans - student loans issued by private banks rather than the federal government - represented about 8 percent of all loans in 2009-10, down from 25 percent in 2006 - 07.

Federal Stafford loans to students made up about 35 percent of all loans in 2009-10, an increase of 31 per cent in 2006-07. Unsubsidized federal Stafford student loans represented 42 percent of federal student loans for student combined and taken private in 2009-10, an increase of nearly 12 percent in 2006 to 07.

Subsidized Stafford loans, which are available only to students who demonstrate financial need, student loans are guaranteed by the Government on which the government pays interest while the student is in school or in a grace period for payment were approved. Unsubsidized Stafford loans are available to students regardless of financial need. Although students on a subsidized loan may defer payment of a loan unsubsidized federal student while at school or in other cases provided, the student, not government, will be responsible for paying all interest on subsidized loans during these periods of deferment.

According to the College Board, about 65 percent of all university students in 2009-10 did not accept Stafford loans of any kind. The majority of students who agreed to take over Stafford college loans and subsidized loans and unsubsidized. The average student loan debt Stafford in 2009-10 was $ 6,550. www.studentloansfinance.co.uk