A host of individuals, communities and businesses across the United States were waiting at one point to see how Congress’s vote on the debt-ceiling bill would impact them. With Pell Grants on the table for cuts, higher education was no different.

Signed by U.S. President Barack Obama on Aug. 2, 2011, the bill indicates that Pell Grants, which serve undergraduates from low-income families, will not be impacted negatively, says Financial Aid Director Cindy Hejl.

However, to support the current funding levels in Pell Grants, a federal subsidy to aid graduate students will be eliminated beginning with loans issued on or after July 1, 2012.

“The graduate loans are changing from having students possibly eligible for $8,500 a year in subsidized loans to only receiving unsubsidized loans,” says Hejl. This savings of $17 billion over the next three years will allow the maximum Pell Grant award to remain at $5,550 instead of facing reductions over the next three years.

That's good news for Metro State students. According to the Financial Aid Office’s latest report on Pell Grant awards, 22 percent more students received the grants in academic year 2010-11 than in 2009-10 (from 8,763 to 10,718).

For graduate students, this means the federal government will not pay the interest accruing on their loans, which they are responsible for paying while they are in school. Hejl explains that graduate students can decide to pay the interest monthly or they can ask for it to be deferred and added to the balance of the loan.

“So in the end, graduate students will see higher amounts in repayments,” says Hejl.

For more information on how the bill impacts higher education, visit the American Council on Education website.