This year President Barack Obama appeared at Northern Virginia Community College to sign a major section of what most people have been calling his health care reform bill. But this section had absolutely nothing to do with insurance or any other aspect of health care. On the other hand, it has a lot to do with helping students get educational scholarships in the very immediate future.

If you were to ask the general public what was the actual title of the bill Obama signed, don’t be surprised if you get a blank stare. It’s actually called “The Health Care and Education Reconciliation Act”. Most media pundits grossly ignored the second half of that title. What’s important is if it goes as planned it could have a very big impact on education, including online colleges.

Admittedly, a considerable amount of the education sections of the bill have to do with elementary and secondary schools. At the same time, who can deny that if this part of the education system isn’t overhauled, the prospects of having primed students for graduate and post-graduate education becomes slim, if not none.

What will have the most impact on the college level begins with online college grants reform. When they were first initiated by then President Lyndon Johnson in 1965, the loan money came directly from the government, which also handled all the administration aspects of the program.

As time progressed and the administrations changed, it was decided it would save the government money if the administrative aspects were handled by banks. That turned out to not be the case when the banks started charging higher interest rates than the history of the entire program, as much as 19%. In the end more loans defaulted than ever before. Couple this with the current economic recession and the student loan program was hemorrhaging tax payer dollars.

By cutting out the banking middlemen, again returning the student loan system to the federal government, President Obama expects there will less defaults due to lowered interest rates. In addition, the profits generated from these loans can be plowed back into increasing the Pell grant and related financial aid programs. The Pell might actually jump from a $5,350 to a $6,000 ceiling in about one year.

That isn’t all the President will do with the savings, either. He announced a portion of money saved will go to online and community colleges. This is because these schools simply cost as much as 60% less than the bigger universities. If the community college has an online division, that’s even better. All the school has to prove is it is an accredited Title IV institution.

“For a long time, our student loan system has worked for banks and financial institutions,” Obama said that day. “Today, we’re finally making our student loan system work for students and our families…we can rightly say the foundation on which America’s future will be built is stronger than it was one year ago.

As the rules for lending, scholarships and college grants and scholarships are changing, all avenues should be explored. Find out what is available with online college grants and see if corporate sponsorship, private grants, or other means are compatible with your needs. Don’t overlook grants and scholarships, a backbone of financial aid for those who qualify.