The Congressional Budget Office (CBO) last week issued budget estimates for H.R. 1777 (enacted as Public Law 111-39 on July 1, 2009) which amends the Higher Education Act of 1965.

The bill made changes to the federal student loan programs; directly appropriated more money for the mandatory portion of the Federal Pell Grant Program; and created a new mandatory grant program, Scholarships for Veterans' Dependents, which will give grants to students who meet specified criteria and whose parent or guardian was killed in Iraq or Afghanistan after September 11, 2001. Those grants will be awarded in a similar manner and at the same award level as Pell grants.

The CBO estimates that H.R. 1777 will reduce direct spending by $3 million over the 2009-2014 and $1 million over the 2009-2019 periods. The report is available online.

Posted 08/11/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.