June 24, 2009
Debt relief for our students is on the way
Courtesy of the College Cost Reduction & Access Act. The online ABA Journal breaks it down this way:
On the public interest side, loan forgiveness works like this: After making loan payments for 10 years on government-backed loans, the government will forgive the loan balance for qualifying borrowers.
Then there's income-based repayment, in which monthly loan payments are capped at an amount relative to the borrower's income. After 25 years, the federal government will forgive any remaining loan debt, the NLJ notes. The income-based option wouldn't likely work for those landing $100,000-plus jobs out of law school. But those who are in the $60,000 pay range, but have more than $100,000 in debt, may be a good fit for the option.
The downside? (Isn't there always a downside?):
"The program is complicated enough that it is difficult for students to understand on their own," Heather Jarvis, a senior program manager at Equal Justice Works, told the NLJ. "As of right now, hardly anyone has a clue about this legislation, and in my mind it's the biggest thing to hit public service in a decade."
I am the scholarship dude.
June 24, 2009 | Permalink
TrackBack URL for this entry:
Listed below are links to weblogs that reference Debt relief for our students is on the way:
This is good to know regardless of the downside of whether it is complicated or not. Students will just want to know if they qualify for the government forgiveness loan after paying for 10 years. And knowing the details on the loan forgiveness after 25 years will also help.
http://www.debtchallenges.com (If you want to visit, just click but if it doesn’t work, copy and paste it onto your browser.)
Posted by: Evelyn Guzman | Jun 25, 2009 5:20:35 AM
Are there really loans that stretch for 10 or 25 years? I did not know that.
Posted by: arizona bankruptcy court | Jul 12, 2009 6:29:03 AM