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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