Federal Government Extends Time Allowed To Apply For Student Loans

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The Obama administration has extend the time allowed to apply for federal financial aid. Aspiring college students and those already working towards a degree in higher education, will be allowed to start the application process three months earlier.

The White House on Sunday said students will be able to apply earlier and submit a previous year’s tax return to help them pay for school.

Aspiring college students will be able to apply for federal financial aid three months earlier than

Students planning to start school in the fall of 2017 must wait until January of that year to fill out the Free Application for Federal Student Aid. The new system will let them complete the form as early as October 2016.

That form is used to determine the eligibility for Pell Grands and federally backed student loans.

In making the decision the White House said students will now know with plenty of time if they can afford to attend college.

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Every year nearly 2 million students are eligible for federal Pell Grants but miss out because they don’t apply on time or never apply at all, possibly because of time considerations.

James Kvaal, the deputy director of the White House’s Domestic Policy Council, says, “If we are not even reaching students who are currently enrolled in college, we wonder how many more students would be in college if they knew this aid was available.”

President Barack Obama planned to announce the revisions Monday during a meeting with high-school students in Des Moines, Iowa.

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.