Student Loans – A New Hope
We can’t deny that there are a number of college graduates these days who face 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 of the former president to expand the education loan forgiveness to more number of students may mean that the loans you took out to pay for your education can be easier to handle. As a matter of fact, the main objective of this particular plan is to make loan consolidation at lower rate of interest which offers 3 major features that are known to benefit struggling college graduates to pay their loans.
Repayment term – every loan that has to be consolidated retains the initial repayment terms and because of that, borrowers can pay lower interest over the course of the loan.
Interest rate – there is a fixed rate not exceeding 8.25 percent after applying for the .25 percent interest reduction to the qualifying loans being consolidated. In addition to that, the lower rates indicate that there’s 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.
Apart from that, the government is convincing those people who have government and private loans for students to be allowed to consolidate their debts into new government loan. This move can drastically slash their interest rate and also, save money throughout the process because the federal government will speed up the rollout of income-based program. As for college graduates on the other hand, they will still be responsible to keep making payments on their loans but the revised payments would now be capped at 10 percent of their income.
And best of that, for all those who have borrowed thousands of dollars to be able to finance their education, their loans would be forgiven after twenty years. With this new law, it is estimated to help a lot of college students to finish their education which range 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.