Student Loans – A New Hope
We can’t deny the fact that there are many college graduates who are facing great problems on their student loans. There are so many college borrowers actually who have called for debt relief but former president Barack Obama proposed for faster government student loans as well as loan forgiveness plans to be able to help borrowers repay debts and boost American economy at the same time.
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. The loan consolidation at lower rate of interest is basically the main goal for this plan and it has 3 major features which benefits struggling college graduates to make their monthly payments.
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’s a fixed rate that won’t exceed 8.25 percent after applying for the .25 percent interest reduction to qualifying loans that are consolidated. In addition to that, the lower rates indicate that there’s more monthly payment for the principal balance.
Electronic debit payment benefit – in regards to those who’ve taken advantage of this consolidation plan, they’ll be entitled for another .25 percent interest reduction in case that 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. On the other hand, college graduates are still responsible in keeping to make payments onto 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 passed, it has been estimated that it can provide assistance to countless of college students to finish their education ranging from 450000 to 6000000.
With this in mind, if you have some problems with your student loans and would like financing for such, it is going to be a good idea to look for student loans company and apply for one. By doing so, you can pay your debts later when working and get a degree.
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