Senator Reed outlines financial aid implications at workshop

By Jen Cowart
Posted 11/29/17

By JEN COWART Since 1991, Senator Jack Reed and his colleagues have been bringing financial aid presentations to parents across the state in order to help them better understand the ins and outs of paying for a college education. Today, more than ever,

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Senator Reed outlines financial aid implications at workshop

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Since 1991, Senator Jack Reed and his colleagues have been bringing financial aid presentations to parents across the state in order to help them better understand the ins and outs of paying for a college education. Today, more than ever, with the rising costs of college saddling students with hundreds of thousands of dollars in debt upon their graduation, and with the unstable budget situation in Washington, D.C. presentations such as the one held at Western Hills Middle School last week are even more important.

Reed and a panel of speakers participated in the recent workshop, speaking on all aspects of the financial aid process, the types of aid and any issues to be cognizant of, including the impending changes that may be coming down from the federal level as the House and the Senate each present their own plans for consideration. Commissioner Brenda Dann-Messier, Ed.D., introduced Senator Reed.

“Sentator Reed is a champion in Washington, D.C. to make sure that financial aid resources are protected,” said Dann-Messier. Senator Reed spoke about why financial aid is so critical now.

“It’s very different now than it was when I was growing up in Cranston, when 70 percent of the jobs easily could have been satisfied with a high school degree and hard work and effort on the job. The world is changing,” he said. “We have to be able to provide opportunities for all Americans so we can all prosper. Financial aid is absolutely critical because the cost of post-secondary education is going up dramatically. We also know that part of the prosperity of this country is linked to education. It’s the engine that drives everything we do as a nation and our ability to prosper in the world.”

He noted that as a father of a 10-year-old, he is very aware that the gap has been growing and that young people are struggling with huge amounts of debt upon graduation from college nationwide and he cited a statistic which stated that that education debt is second only to mortgages in terms of the debt that Americans hold.

He listed several critical federal programs for students, including the Pell Grant, which does not need to be paid back. The maximum Pell grant is $5,920 and students qualify based on income level. Thirty thousand in RI and 7 million students nationwide have a Pell Grant. He also listed work-study and student loan programs, which need to be repaid. He encouraged the audience to try to get federal loans first, before private loans for education.

Senator Reed stated that the FAFSA is much easier to fill out now then it was previously and it is now possible to use this year’s (2016) tax returns as of October 1, which allows families to find out sooner what types of aid they qualify for.

He encouraged guests to minimize the amount they borrow versus what they can get from grants and scholarships for free and stated that there are also types of service that are repayable in terms of student loans. He listed Americorps as just one example and stated that he is trying to expand the benefits even further.

He also explained that Congress is currently trying to remove from the budget many of the financial aid benefits that are currently available.

“The House bill for example, would repeal the deduction of student loan interest, which for a lot of families would be really very difficult,” he said. “There are several other provisions which would directly undercut financing of colleges, not only student financing but also financing for the institutions. What happens in the next several weeks in Washington will be absolutely critical in what we are going to be able to do to help you and your student go on to higher education. We are going to try our best to keep these benefits available for our Rhode Islanders.”

During the workshop, Tracy Hess, a certified public accountant handed out a form which gave a detailed listing of tax credits and other types of tax benefits and gave a brief overview of several, including the American Opportunity Credit, 529 plans, and the Lifetime Learning Credit. She, like Senator Reed, stated that the current budget situation in Washington, D.C. is uncertain and that many of the items on her list could be changing, depending on the budget that is passed. She encouraged families to be aware of the budget and its implications for their financial aid situation.

For more information about financial aid options, visit the RISLA website at www.risla.com.

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