President Obama’s proposed Student Aid and Fiscal Responsibility Act will make it easier for Syracuse University students and college students around the country to pay for college.

In his State of the Union address Jan. 27, Obama urged Congress to pass the act, which would eliminate bank-based federal loan programs and make colleges and universities direct lenders of student loans.

He also announced plans to increase Pell Grants and streamline loan applications, changes that will help SU students immensely in paying for their educations, said Youlanda Copeland-Morgan, associate vice president for enrollment management and director of scholarships and student aid.

‘All of these changes will benefit SU students very significantly,’ she said. ‘SU depends upon a healthy relationship with the federal government to ensure that an education here is affordable to all types of families.’

Approximately 65 percent of SU students took out federal loans as of September, according to an article published in The Daily Orange Sept. 29.

SU already began direct lending to a small group of students this semester, Copeland-Morgan said. Direct lending is beneficial because almost 7,000 students have been affected by banks that withdrew from the Stafford loan program, causing the loans to fall through, she said.

‘Each time that happened, we had to contact the students and tell them they had to find a new lender, which caused students a lot of anxiety,’ she said.

Obama also said he plans to increase the value of Pell Grants, something he began last year, which will primarily help SU students from families whose incomes total $45,000 a year. Additional financial aid from the government helps SU put together better financial aid packages, Copeland-Morgan said.

‘The overwhelming majority of grants we give comes from the university, but we are able to offer each student the best possible financial aid package with support from the government,’ she said.

The Free Application for Federal Student Aid, a tax form for students who apply for federal financial assistance, will be streamlined. The form will allow families to pull their tax information directly from the IRS and ease the application process, Obama said in the address.

If a student checks that he or she is not married, for example, the form will automatically eliminate questions about spousal information, Copeland-Morgan said.

While the new FAFSA form will mean fewer headaches for all applicants and their families, it will be particularly helpful for students who may not have thought they would ever go to college, Copeland-Morgan said.

‘The new form reflects the changing characteristics we have in this country of people going to college,’ she said. ‘For students who are low-income or first-generation college students, the process is far too complex. Simplifying the federal system and creating more efficiency is extremely important to serve these diverse populations.’

ertocci@syr.edu

Published on February 2, 2010 at 12:00 pm