by Shawn Massie, special to The MSU Spokesman
The Obama administration has unveiled an initiative to improve a key tuition assistance tool—the Federal Pell Grant—with elements that will aid students especially at historically Black colleges and universities.
The move, announced Thursday, will modernize the way student loans appear on borrowers’ credit reports, promote borrowers’ successful loan repayment, and reduce borrower defaults, according to the Department of Education.
“The Obama Administration continues to look for ways to make college more affordable and accessible for all families. A college degree is one of the best investments a student can make in his or her future, and it remains the clearest path to the middle class,” Secretary John B. King Jr. said.
“We want student borrowers to know that they have the support they need to manage their debt and navigate the options available to them to pay back their loans.”
In remarks to a group of college journalists visiting the White House, King said the administration initiative would add to the size of Pell Grants available for the summer semester.
According to U.S. News, the action will provide an additional $1,915 per student.
“In the past it (summer Pell grants) helped students at HBCUs,” said King. “It hurt those students when it was cut a few years ago,” said King.
The funding initiative is to be included in the president’s 2017 fiscal budget.