Two provisions in the recently-passed Federal health care legislation will directly affect college students.

The first, an extension of benefits for students under their parents’ plans, will allow college students to remain covered until the age of 26. The second, part of the Student Aid and Fiscal Responsibility Act (SAFRA), will change the way students borrow money for college. Instead of applying for private loans subsidized by the government, students may now apply directly to the federal government for borrowed aid. The bill also changes repayment requirements, allowing graduates to pay back their loans on a sliding scale based on their income. In addition, graduates who pursue employment in the public sector will enjoy the added benefit of loan forgiveness after ten years of service.

Changes to the Pell Grant were also made as part of the SAFRA, providing an increase in the award amount. In three years the grant will be changed to reflect the Consumer Price Index and be adjusted to keep pace with the rising cost of living.

Higher education institutions and students may benefit from the recent passage of health care legislation beyond the changes made to student aid.

While the broader implications for higher education and students are still being fettered out, there are several tangible benefits which students, campus health care centers and medical schools are likely to feel sooner rather than later.

• College and university-based student health insurance plans are provided a special exemption that allows them to continue even though they do not fit the classification as individual plans or employer-based group plans.
• As of late September 2010 young adults will be eligible to be covered by their parents’ insurance plans through age 26.
• Significant expansion of funding for the National Health Services Corps, which helps young doctors who work in underserved areas.
• Significant expansion of the Title VII Health Professions Education programwhich offers scholarships and loan forgiveness to help diversify allied health professions racially, ethnically, and geographically.

The benefits for students and higher education will become law today upon President Obama’s signature.