Student Loans – A New Hope
We can’t deny the fact that there are many college graduates who are facing great problems on their student loans. There are numerous college loan borrower who’ve actually requested for debt relief but the now former president Barack Obama has proposed for a Barack Obama proposed for faster government student loans as well as loan forgiveness plans to boost American economy and help borrowers repay debts.
The decision made by the former president to expand the education loan forgiveness to more students mean that the loans you took to pay for getting a degree can be more manageable to handle. The main goal for this plan is for the loan consolidation be at lower rate of interest and it has 3 major features that benefit struggling college graduates in making their monthly payments.
Repayment term – borrowers can pay lower interests over the course of the loan as every loan that has to be consolidated will be able to retain its initial repayment terms.
Interest rate – there’s a fixed rate that won’t exceed 8.25 percent after applying for the .25 percent interest reduction to qualifying loans that are consolidated. The lower rates also means that there is going to be more monthly payment for the principal balance.
Electronic debit payment benefit – when it comes to those who used the consolidation plan, they are entitled for an additional .25 percent interest reduction if their educational loan is paid through Department of Education’s automatic debit system.
In addition to that, the government wants those holding both government and private loans for students to be allowed to consolidate debts into new government loan. Since the federal government will speed up the rollout of income-based program, such move can drastically slash the rate of interest and also, save money throughout the process. On the other hand, college graduates are still responsible in keeping to make payments onto their loans but the revised payments would now be capped at 10 percent of their income.
And that’s not just the best part because all those who have borrowed thousands of dollars to pay for their college education, their loans would be forgiven after twenty years. With this new law passed, it has been estimated that it can provide assistance to countless of college students to finish their education ranging from 450000 to 6000000.
With this, if you’re having some issues with your student loans and would like financing for such, it is going to be a good idea to search for student loans company and apply for one. By doing so, you can pay your debts later when working and get a degree.