New federal legislation attached to the much-talked about health care bill will take several years before it provides aid to the finances of college students.

On March 30, 2010 President Barack Obama signed the Health Care and Education Reconciliation Act of 2010. It will have four major implications on students nationwide, but it will not provide immediate relief for the ever-growing number of students looking for financial aid.

First off, the act increases the maximum amount of Pell grants a student can receive to $5,975 from today’s $5,550, according an article from The New York Times. But the total increase won’t happen until 2017.

The distribution of Pell grants to City College students for the 2009-2010 year isn’t completed yet, but there is already a notable increase of applicants.

“We are meeting the demand,” Brad Hardison, financial aid director at City College, said.

He said the number of Pell grant receivers has increased from 2,791 students for 2008-2009 to 3,533 as of this month, with more to come before the year is over.

“It is definitely connected to the general economic crisis,” Hardison said.

After research found that many eligible students failed to fill out the application form for Pell grants correctly, and thus missed a major funding opportunity, the reform will make applying easier.

The Consumer Price Index will be taken into account when deciding how high the increase ought to be. The inflation and cost of students’ living expenses will be more accurately represented, which benefits students’ economy.

Tianna Gibson, a City College student receiving Pell grants, said she thinks students really can use an increase.

She says the application process could be made easier.

“It takes a lot of time,” she said.

Obama’s act also includes a reform regarding student loans. Private banks can’t make student loans with federal money anymore. This forces commercial banks off the federal student loan market, which will put an end to the banks’ billions of profits.

Large commercial banks have been given subsidies since the mid-1960s to lend money to students, with the federal government backing the loans, taking much of the risk.

Representatives of the Financial Aid office at City College said it’s too early to say what impact this reform will have on students in the future.

The bankers are making enough money as it is, so it’s good that the profits for student loans now are becoming limited and students are having a hard time as it is already, Gibson said.