Student Debt & The Obama Budget (Chloe) by Chloë

For many of us that are still students, we are semi-isolated from the financial crisis. We are though very familiar with the financial aid process that causes major head aches around this time of the year. Obama's new budget may change that.

The president is proposing an overhaul of the financial aid program, including nationalizing the lending process. Not surprisingly this will have a negative impact on lending institutions like Sallie Mae, but the plan is estimated to save the federal government 4 billion dollars. Along with saving the federal government money, the president is increasing the number of grants available to low income students and expanding eligibility to the federal loan program.

This though is a small step in terms of getting affordable education and many students will still be left with mounds of debt. It though signifies greater federal government involvement in higher education, letting us hope that free higher education will someday be a reality in the United States.