The rebounding economy is not good for those hoping to find scholarships in 2010. When the economy came falling down in 2009, many private colleges found themselves in a panic. They significantly increased their financially aid packages in order to attract students. Students in the class of 2013 found themselves with a wide variety of grants and scholarships available. Now that economists are saying the economy is on the rebound, expect for 2010-2011 school year financial aid packages to be stingier for income freshmen. Financial aid offices now believe that more families will be able to afford the cost of college than the previous year.
The Pell Grant will be more attractive this year. The Obama administration has stated that they hope to increase number and size of the need based Pell Grants offered through completion of the 2010-2011 FAFSA. Families earning under $50,000 now have a greater chance of receiving free money from the Federal Government. They plan to raise the maximum size of the Pell Grant by $200 to $5,550. Also, the government will lower the interest rate on subsidized Stafford student loans by slightly more than a percentage point to just 4.5 percent in the fall.