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• Latest Stimulus Bill News, Analysis and Advocacy from NASFAA

American Recovery and Reinvestment Act (ARRA) of 2009

The American Recovery and Reinvestment Act (ARRA) of 2009 was signed into law by President Obama on February 17, 2009. Commonly referred to as "the stimulus bill", the law provides roughly $30 billion in additional funding for financial aid to the Department of Education for the next two academic years. It also grants additional support for college education programs administered by other agencies.

• Title IV Programs: For Pell Grant, slightly more than $17 billion is provided to increase the maximum award to $5,350 in 2009-10 and $5,550 in 2010-11, and eliminate the Pell Grant shortfall. Work Study received an additional $200 million.


• Health Resources and Services Administration: $300 million is budgeted for the National Health Service Corps, which provides scholarships, loans, and loan repayment programs for behavioral and mental health care providers, primary care physicians, and other health professionals. Another $200 million is divided between health professions training programs and HRSA Nursing Workforce Development programs such as the Nursing Loan Repayment Program.


• American Opportunity Tax Credit: The law provides approximately $13.5 billion for a temporary, more generous replacement of the HOPE tax credit for 2009-2010 and 2010-11. The amount of the credit is up to $2,500, of which up to 40 percent ($1,000) of which is refundable. The modified AGI phase out starts at $80,000 ($160,000 for a joint return).


• 529 Plans: For 2009 and 2010. the law temporarily defines computer technology and equipment, including Internet access fees, as "qualified higher education expenses" for 529 plan purposes.

ARRA Resources

• Department Clarifies How Extra FWS Funds Were Distributed posted 4/9/2009
• Operational Implementation Guidance: Implementation Of 2009-10 Federal Pell Grant Payment And Disbursement Schedules updated 3/12/2009
• Dear Colleague Letter P-09-01: 2009-10 Federal Pell Grant Payment And Disbursement Schedules updated 2/20/2009
• Department of Education American Recovery and Reinvestment Act of 2009 Web Center
• Full Summary Of Provisions from the Senate Finance and House Ways & Means Committees, Feb 2009
• Text of the American Recovery and Reinvestment Act (H.R.1) as signed into law on February 17, 2009

The Economic Stimulus Act of 2008

The Economic Stimulus Act of 2008 was signed into law by former President G.W. Bush on February 13, 2008. The law provided tax rebates to low- and middle-income taxpayers, tax incentives to stimulate business investment, and an increase in the limits on mortgages eligible for purchase by Fannie Mae and Freddie Mac.

2008 Stimulus Bill Resources

• Treatment of 2008 Economic Stimulus Payment in the 2009-2010 Federal Need Analysis updated 3/20/2009
• Text of the Economic Stimulus Act of 2008, Pub.L. 110-185