Education act benefits students

By: Hope Morley

Posted: 8/27/08

College students across the country may have a little extra cash in their pockets next year due to a bill signed Aug. 14 by President Bush.

The Higher Education Opportunity Act of 2008 makes federal loans more accessible, regulates textbook pricing and increases and creates new grant programs. Put into effect this month, the most immediate changes can be seen in how students shop for and take out private loans, while other sections of the act will be implemented over the next several years.

"The law overhauls our nation's higher education law and removes obstacles that make it harder for qualified students to go to college," said Melissa Salmanowitz, spokesperson for the House of Representatives.

The biggest changes found in the 1000-page law are in the area of loans, both federal and private. The new law simplifies the Free Application for Federal Student Aid (FAFSA) process, which is needed to apply for any form of federal aid.

Currently, students and their parents are required to fill out more than eight pages of questions. With this law, it will be shortened to two. This revised version of the form will not be available until August 2010.

"Too often applying to colleges and for financial aid becomes a barrier for low-income and first generation students," said Youlonda Copeland-Morgan, the new associate vice president for the Office of Financial Aid and Scholarship Programs at Syracuse University. "The focus overall to simplify the process is great for students."

Copeland-Morgan said 58 percent of undergraduate students at SU use some form of federal loans to pay their tuition. Her office always recommends federal loans over private companies because they provide better rates, benefits and repayment plans for students.

The first of the changes - put into effect Aug. 14 - requires private lenders to be more transparent in their lending practices. They are now required to provide simple and complete information for borrowing and repayment options.

Students might save money after graduation as well because the law provides new income-based repayment options. For those going into civil service professions - nursing, civil defense and public health - the act also provides loan forgiveness options.

"We cannot afford to have public policy that discourages our students from going into professions of service," Copeland-Morgan said. "It won't reduce student indebtedness, but it helps better manage debt."

In addition to loans, the act also increases the maximum Federal Pell Grant for students from low-income families from $4,731 to $6,000 a year come July 1, 2009. This year, more than 20 percent of incoming freshmen at SU receive some support from a Pell Grant.

The act also aims to reduce the cost of textbooks effective July 1, 2010 by forcing publishers into full disclosure about pricing and how often they print new editions. Also, textbooks that come packaged together with computer programs or workbooks must be made available for separate purchase.

Anna Richardson, a freshman in the School of Information Studies, said she spent more than $500 on textbooks for the semester. Her math book included a computer disk, which makes it more expensive.

"I learn best from books anyway," she said about the disk. "I probably won't even use (the bundled books)."

One potential loophole in the unbundling requirement comes if a publisher declares the textbook and supplemental materials are "integrated," or both are required. In that case, they do not have to be offered separately.

"This loophole could be wide enough to drive a truck through," said Francis Clark from New York Public Interest Research Group.

Though the increase in grants and other programs look great on paper, Copeland-Morgan warns that without proper appropriations from Congress, they will fall short.

SU already provides over two-thirds of monies for financial aid. Without more government money, SU will not be able to afford to give higher grant awards or bigger loans.

"Every student eligible to vote should communicate with our elected officials and say, 'We're aware that we won't benefit without proper funding,'" Copeland-Morgan said. "It's not enough to just pass it."

hemorley@syr.edu