Students, again, will feel the brunt of congressional penny-pinching in student loans.
WASHINGTON (CNNMoney) — Thousands of college students may soon feel a financial pinch and another 100,000 may not be able to complete degrees if Congress pushes ahead with planned changes to federal student loans, education experts said.
Congress is expected on Friday to pass a budget to fund the federal government over the next nine months. And the budget makes some big changes to certain federal student loan programs.
The good news for students is the budget would set maximum level of the popular Pell Grant awards at $5,550 — the highest it has ever been — for the most financially-strapped students heading to college in fall 2012. (Calculator: How much will that college really cost?)
But to bridge a billion-dollar gap in the Pell Grant program, Congress is set to make it tougher for some students to be eligible for federal financial aid.
The two most important changes: A reduction in the number of years students can receive Pell Grant money and the temporary elimination of a six-month grace period on interest payments
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