The Daily Egyptian is published by the students of SIU at Carbondale. Except during vacations and exam weeks,
The Daily Egyptian is published Monday through Friday during the fall and
spring semesters and TWThF during the summer semester."
As the fireworks go up this July, student loan rates are falling to an all-time low.
On July 1, interest rates on student loans dropped to between 2.82 percent and 4.22 percent for the this fiscal year, continuing an on-going trend.
Interest rates have dropped 4.77 percentage points in three years, according to Sallie Mae, a leading provider of education loans.
"State loans are a better deal now than they ever have been," said Ann Acton, associate director of Financial Aid. "But we encourage students to only borrow as much as they have to."
However, Acton said sometimes students need to borrow more than they are allowed to. The federal government is working on a proposal to increase the maximum amount some undergraduates can borrow. She said the current amounts - about $2,500 for freshmen and $3,500 for sophomores - are often not enough to meet their needs.
More than 20,000 students, or about 77 percent of the student population, receive some form of financial aid, either through loans, grants, work study programs or scholarships.
Recipients of the Pell Grant will see an increase in their award this fall. The need-based grant, which was awarded to almost 6,000 SIUC students in fiscal year 2002, was increased $50 as part of a congressional proposal to restructure financial aid. The increased award totals $4,050.
Acton said the biggest blow to financial aid has been at the state level due to the decreased budget. Under the budget proposed by Gov. Rod Blagojevich, SIU will receive an 8.25-percent cut for fiscal year 2004, about $19.3 million less than received in fiscal year 2003. Statewide cuts to higher education are expected to total $202 million.
The Illinois Monetary Award Program grant, sponsored by the Illinois Student Assistance Commission, has been reduced the past two years. Originally, the full award covered all tuition and fees, approximately $5,500. Now the full award only covers 85 percent of that, slightly more than $4,000.
"Because they don't have as much money to give out, the overall state of the economy, more students applying and more students eligible to receive the grant, they had to reduce the amount given out and shorten the application deadline," Acton said.
The application deadline has been shortened to Aug. 6 to limit applicants. In recent years, it has been as late as Sept. 30.
The Illinois government restored eligibility for the MAP Grant to students during their first semester of their fifth year. The General Assembly revoked the grant last year for all students after their fourth year in an effort to save money.
As a result, more than 400 SIUC students lost about $1.5 million in aid. Acton said the additional semester of aid, while not much, will be a relief to several students around campus and help ease some of their financial burden.
State scholarships and work study programs have not changed substantially from past years, mainly due to federal funding and the money Chancellor Walter Wendler set aside from increases in tuition.
However, Acton said work study will change in January 2005 when the federal increase in minimum wage takes effect. Although the campus minimum wage is currently higher than the federal level, Acton said they will have to make some changes, such as cutting student work hours, once the federal wage is increased to $6 per hour.
"Usually rather than cutting jobs, employers simply change the parameters so the money goes farther," Acton said.
Although a few financial aid programs received cuts for fiscal year 2004, students will still be able to receive benefits through lowered interest rates and an increase in Pell Grants.
