New Help for College Financial Aid

Congress has passed legislation cutting huge federal subsidies to institutions making student loans and instead are giving most of the money to increased student financial aid. The Washington Post has reported the details as well as an indication that the president will sign the bill despite early objections to various portions of the legislation.

There are many problems with federal financial aid for college students but this legislation is a step in the right direction with an increase in the amount of money available through Pell grants and a cut in the interest for student loans. Although it may cause a small increase in tax rates, the importance of providing higher education for all students that desire such an education is so important that the tax increase should not be a deterrent. Moreover, providing higher education to more students through increased financial aid will ultimately result in a more educated populace that can generate greater income and thus greater tax generation.