Federal Student Loan Program Changes

a Free Application for Federal Student Aid (FAFSA), which is available online at www.fafsa.ed.gov, from the school's guidance counselor or financial aid office, or by calling 1-800-4-FED-AID.

Most of the savings reaped by eliminating the FFELP will be applied toward the Federal Pell Grant program. (Pell Grants are scholarships given to students from lower-income families that needn't be repaid.)

Beginning with the 2010-2011 academic year (July 1, 2010 to June 30, 2011), the maximum Pell Grant amount increases by $200 to $5,550, where it will remain until 2013-2014. In addition, from the 2013-2014 through 2017-2018 academic years, the amount will be indexed for inflation, as measured by the Consumer Price Index for all Urban Consumers), capping out at $5,975.