Information About The Educational Debt Relief Program
President Obama issued an executive order in the fall announcing new programs that will reduce the burden on students repaying their federal student loans. One proposal, Special Direct Consolidation, is in effect now through June 30 and allows certain borrowers to consolidate their loans and receive an interest rate reduction. The President also proposes changes that would allow certain borrowers to receive lower monthly payment amounts based on income. The Consumer Financial Protection Bureau and the Department of Education are also collaborating on new projects to assist students and graduates.
There’s still a bit of uncertainty around the President’s proposal for income-based payments and the timing for some students. It should also be noted that, while it is not as helpful as the President’s proposal, the Income-Based Repayment plan in its current form (25-year forgiveness and a 15% cap on payments) is available to help all students with their federal loans, including those who work exclusively in the private sector or are not employed.
To learn more about the President’s initiatives and stay up-to-date on educational debt relief news, check out the Student Loan Ranger blog at U.S. News Education. Sign up for free Equal Justice Works webinars to learn about available educational debt relief, whether you are eligible and how to qualify.