Sen. Edward Kennedy (D-Mass.) introduced legislation that would improve access to federal loans and increase the amounts of Pell Grants for certain college students, saying that Congress cannot allow problems in the credit market to prevent students from going to college.
The bill, called Strengthening Student Aid for All Act reduced low-income families reliance on loans by increasing the maximum Pell Grant for the lowest-income recipients by up to $750 above the maximum award. The new maximum appears to be $4,731 for the 2008-2009 school year, according to a statement from the Senator. The bill also seeks to increase federal loan limits by $1,000 annually for dependent undergraduate students and $2,000 for independent undergraduate students as well as those students whose parents are hindered from getting certain federal parent loans because of poor credit. This is an effort to minimize the growing reliance on private loans, according to a statement from the Senators office.