If you’ve got a loan coming in 2012 and had one between 2008 and 2011, good news for you: President Obama has been working with the Department of Education to implement a new student loan payment and forgiveness plan to make your life easier.
First and foremost, those payments that you make after college will be capped at 10% of your income. So if you’re not working, you’re not paying, and if you find yourself making ends meet with a part-time gig your monthly payment won’t be more than 10% of those hourly wages. Another big part of Obama’s plan is that if you make those monthly payments regularly for 20 years, and still haven’t paid off your loan, the remaining balance will be forgiven. (As it currently stands, loan forgiveness only comes after 25 years of regular payments.)
Other features of the plan include more savings by consolidating loans into one monthly payment rather than several, and encouraging universities to offer more information and education on the student loan system.
It’s great to see that the President is as devoted to making college students’ lives easier as we are here at CMyLawyer!