Get A Degree, Get Student Loans
We can’t deny the fact that there are many college graduates who are facing 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 made by the former president to expand the education loan forgiveness to more students mean that the loans you took to pay for getting a degree can be more manageable 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 will retain its initial repayment terms and for that, borrowers are going to pay lower interests 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 – 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. Since the federal government will speed up the rollout of income-based program, such move can drastically slash the rate of interest and also, save money throughout the process. 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 that’s not just the best part because all those who have borrowed thousands of dollars to pay for their college education, their loans would be forgiven after twenty years. This new law is estimated to help college students 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.