Senator Edward M. Kennedy sent a letter today to Massachusetts college leaders, urging them to make sure students know about a new program that makes it less expensive to repay student loans.
Under the program that starts Wednesday, monthly payments are capped based on a graduate's income and remaining balances are wiped clean after 25 years. Those who take public service jobs can get their loans forgiven after 10 years.
"A college degree has never been more important. Yet it’s increasingly difficult for students to afford. In particular, the prospect of heavy loan burdens is discouraging more and more students from attending the college of their choice, or pursuing jobs in the public interest. More than two-thirds of college students graduate with federal loan debt averaging $20,000 after graduation," wrote Kennedy, chairman of the Health, Education, Labor, and Pensions Committee .
"College affordability has long been a major concern of mine in the Senate and I’m writing now to draw your attention to a new option – Income Based Repayment – that will make loan repayment easier for students, no matter what job they take after graduation. If you haven’t done so already, I urge you to inform your students about it."
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Monday, August 24, 2009
Monday, August 10, 2009
New federal student loan program may ease burden on college students
LA CROSSE, WI (WXOW)---In this economy, college students are going to school to get a job, then getting a job to pay for school. But now a new program called Income Based Re-Payment may help students lighten the load.
WTC Financial Aid Assistant Shirley Heffner says, "The intent of the program is to reduce student loan payments for those who are suffering some sort of financial hardship."
Income-based repayment or IBR is a new way to make your federal student loan payments more manageable, and if you're a teacher or work in government or at a nonprofit organization, you might qualify for a new type of public service loan forgiveness after 10 years of eligible payments and employment.
Here's how it works: If you owe more in financial aid loans than you currently bring in annually, you may qualify for the IBR program. Other factors are considered in the application process, like your marital status, how you file your taxes, and the number of children in your household. For those who qualify, their monthly student loan payments may be cut in half, and your payment may be forgiven over time.
Heffner says, "The benefit for students is not only fo they free up some disposible income, they may also in the future be eligible for loan forgiveness after 25 years of payments made under income based re-payment."
This program is still very new, it was just introduced July first, so it's best to talk to your lenders to see if you qualify for the IBR program.
Source
WTC Financial Aid Assistant Shirley Heffner says, "The intent of the program is to reduce student loan payments for those who are suffering some sort of financial hardship."
Income-based repayment or IBR is a new way to make your federal student loan payments more manageable, and if you're a teacher or work in government or at a nonprofit organization, you might qualify for a new type of public service loan forgiveness after 10 years of eligible payments and employment.
Here's how it works: If you owe more in financial aid loans than you currently bring in annually, you may qualify for the IBR program. Other factors are considered in the application process, like your marital status, how you file your taxes, and the number of children in your household. For those who qualify, their monthly student loan payments may be cut in half, and your payment may be forgiven over time.
Heffner says, "The benefit for students is not only fo they free up some disposible income, they may also in the future be eligible for loan forgiveness after 25 years of payments made under income based re-payment."
This program is still very new, it was just introduced July first, so it's best to talk to your lenders to see if you qualify for the IBR program.
Source
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