“Suzie Dundas is at that stage of life when student loans loom larger than car leases or electricity bills. The $390 monthly payments seem to stretch into perpetuity. They are her largest monthly obligation aside from her rent, which Dundas has decided she can no longer afford. She is about to move back in with her parents.
Dundas, 23, is a new graduate entering a stricken job market with a master’s degree, $30,000 in debt and far less earning potential than she expected when she borrowed the money. She works part time for the State Department.
“When I get paid, I think, ‘All right, I have $500,’ ” she said. “But then I remember I have huge loans, and it’s really just, ‘All right, I have negative $29,500.’ And then I go eat ramen for dinner.”
This summer brings a measure of relief. Starting July 1, student borrowers can cap their monthly payments at a modest sum determined by income and family size. A second initiative, the Public Service Loan Forgiveness Program, will erase student debt entirely after 10 years for graduates who work for government or various nonprofit organizations.
Together, the programs amount to “the broadest and most expansive set of provisions we’ve ever had” to ease student debt, said Terry Hartle, senior vice president of the American Council on Education, an association of college administrators based in the District…”
By Daniel de Vise
Washington Post Staff Writer
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