WARWICK, RI – Congressman Jim Langevin (D-RI), along with the Rhode Island Student Loan Authority, will highlight the new, positive changes to student loan benefits on Thursday, July 2, at the College Planning Center at the Warwick Mall.
“In this challenging job market we need to do all we can to help our graduates manage their educational debt,” said Langevin. “The benefit changes that we will be announcing are a result of the College Cost Reduction and Access Act, which passed into law in 2007 with my support.”

“This year the College Planning Center of Rhode Island has assisted the largest number of students in its 10 year history – we’ve helped more than 6,000 students, free of charge, to navigate the college access process,” said Charles Kelley, Executive Director of the Rhode Island Student Loan Authority. “This is a reflection of these difficult economic times and rising tuition costs.  In this current economy, we continue to believe that higher education is the best investment for the future.”

The new benefits, which go into effect on July 1, include:
• Cheaper interest rates on need-based (subsidized) federal student loans. On July 1, the interest rates on subsidized federal student loans will decrease from 6 percent to 5.6 percent. This is the second of four annual cuts in this interest rate. The rate will continue to drop until it reaches 3.4 percent in 2011.

• Reasonable and affordable monthly college loan payments for borrowers. On July 1, a new Income-Based Repayment program will go into effect that caps borrowers’ monthly loan payments at just 15 percent of their discretionary income (15 percent of what a borrower earns above 150 percent of the poverty level for their family size). Any current or future borrower whose loan payment exceeds 15 percent of their discretionary income is eligible. After 25 years in the program, borrowers’ debts will be completely forgiven.

• Higher Pell Grant scholarships that cover the average tuition at public universities. Due to funding provided by both the College Cost Reduction and Access Act and the American Recovery and Reinvestment Act, the maximum Pell Grant scholarship for the 2009-2010 school year will be $5,350 – more than $600 above last year’s award.
 
Thursday, July 2, 2009 - - 10 a.m. – 11 a.m.
College Planning Center of RI – Warwick Office
Warwick Mall (near JC Penny entrance)
 400 Bald Hill Road, Warwick, RI

  
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