05.22.09 | Student Loan Relief on the Way
At this point we’ve all heard the statistics. Graduate students on average earn between 15-20% more per year than those with just a bachelors degree. But what no one discusses is the mountain of debt many students find themselves in as a result of said degree.
However, the debt is manageable and worth it if you land the right job out of school. But in this tough job market many are accepting lower paying jobs than their degree is deserving of which is making it challenging to make ends meet. Fortunately federal student loan payments are going to become a bit more affordable later this year.
Under the College Cost Reduction and Access Act borrowers will be able to cap their monthly student loan payments at a reasonable percentage of their income. The plan takes effect July 1. It is an Income-Based Repayment program that caps students and borrowers monthly payments at just 15 of their discretionary income. Any current or future borrower whose loan payments exceed 15 percent of their discretionary income will be eligible. After 25 years in the program, borrower’s debts will be completely forgiven.
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Five most recent graduate financial aid blog posts:
It is great to hear that there will be more money for college students, considering the current economic situation and how expensive college costs are becoming. With my kids in college, it is nice to know that the costs might be lessened a bit.
May 22nd, 2009 | #