New Plan to Help Students Pay Back College Loan Debt
Hi All,
Here's some news many of you Millennial college students, with loans, may find as a relief.
I came across this today on Time.com:
"New College-Loan Plan: Pay Back By What You Earn", by Gilbert Cruz.
I certainly don't want to get into a copyright issue with Time, so I'll just share a few highlights from the article and you can go their website to read all the details.
- The average college student graduates with $23,000 of student loan debt
- New income-based repayment plan (IBR) could greatly adjust how loans are paid back
- The article stated: Championed by Massachusetts Senator Ted Kennedy, this is to prevent payments on federal student loans from exceeding 15% of a borrower's disposable income above 150% of the poverty level. Borrowers who earn below that threshold (which in most states is about $16,000 for a single person with no dependents) wouldn't have to make any monthly payments at all.
NOTE: You can find a link to a special calculator in the article to determine if you qualify.
The article also explains adjustments being made to Pell Grant policies, and a few other strategies to make it easier on students to pay back their loans.
All these steps are an effort by the Obama Administration to A.) Move towards making college more affordable for everyone, and B.) Try to decrease the number of defaults on existing student loans.
So, if you're a college student, recent grad, or parent of either, you should check out this article.
Bye for now.
Article by Lisa Orrell, Millennial & Generation Relations Expert and courtesy of Lisa's Generation Relations Blog
Hi Lisa, This is definitely a great news for so many students out there-thanks a ton for sharing this info. The Calculator to know whether one is qualified for the same or not is really handy.