Student Scholarship

In the face of economic troubles, many schools, colleges, and students are having a hard time finding the money they need to make education work. The good news is, if Obama's stimulus proposals are enacted, more money will find its way to the schools and students who need it. State schools may be able to avoid some of the budget cuts they had anticipated, and many students receiving financial aid through the various federal programs are likely to see their aid increased.

As the economy has contracted, state income revenues have also declined - many states are currently projecting large budget deficits and education has been a target of potential budget cuts. To prevent this outcome, the stimulus plan proposed by president Obama will provide federal funds to supplement state budgets in education and infrastructure maintenance. This money would be sent to the state education departments, and it would likely be used to keep local teachers employed, maintain state scholarship funds, and keep state schools operating without major cost cuts or tuition hikes.

Some of the money in the stimulus plan would also be directed straight to the college students themselves. Pell grant award amounts would be increased immediately, and students would also be able to borrow more money under subsidized federal loan programs. While the student loans would ultimately have to be paid back, the federally backed loan program offers interest rates that are much cheaper than anything that can be acquired on the private student loan market.

Another form of spending included in the legislation affects research and the universities that perform scientific studies: Large sums of cash flowing into these institutions will also have a spillover affect for students as they see more faculty being hired and more equipment being purchased for school labs.

The costs of so much borrowed government money are unknown. Taxes may rise soon, or another round of inflation may offset much of the benefits had by such spending. It is probably impossible to know the full effect of such macro-economic policy, but it is clear that colleges and students will have a lot to gain in the short term.

John is a writer and web publisher working on a site dedicated to helping students find the that they need to get the most out of education without going in to debt. If you or a student you know needs money for school, make sure to learn about how to find and that cost nothing up front and never have to be repaid.