The White House has announced this past Tuesday, that President Obama is taking steps to ease the burden of student loans. The President plans to accelerate a plan that would cap student loan payments at 10 percent of income, by starting the plan in 2012 instead of the 2014 start date. This plan would potentially help millions of cash-strapped college graduates in an exceedingly tough economy.
According to the Federal Reserve Bank of New York, Americans owe more on student loans than on outstanding credit card debt, which currently exceeds $1 trillion this year. The President is slated to announce the student loan measure today.
With this move, it is estimated that the loan changes could cut monthly payments for 1.6 million graduates. According to the article posted in the Sun Sentinel today, student debt may also be forgiven after 20 years, as compared to 25 years under the current law. As of now, over 36 millions Americans have federal student loan debt, but only 450,000 have so far taken advantage of the existing income-based repayment plan (IBR) program.
Remember, you are not alone. If you are currently in default of your student loans; dealing with a collection company; need help in determing the best course of action with getting out of default, contact an attorney today. We are here to help with any questions you may have. There are several options one may have when it comes to repayment of your loans.