Q: In the new student loan legislature or bill that the federal government is trying to pass, is there any help for student loan debt, or will the new student loan legislature only help those students who are currently taking out student loans?
A: The student loan reform legislation, which has yet to be passed by congress (at the time this article was published) will include student loan reform for both students currently obtaining student loans, as well as for those struggling with student loan debt. The current student loan repayment plan (Income Based Repayment) which aids former students, whose incomes are not substantial enough to cover their monthly living expenses AND their student loan debt, states that these former students must dedicate 15% of their monthly income towards reducing their student loan debt (and before I continue, I should state that the Income Based Repayment Plan helps those with federal student loans only.
If you are struggling with private student loan debt, please visit our Student Loan Debt Help section), with any remaining student loan debt being “wiped out” after 25 years of compliance within this program. Under the new student loan reform legislation, the student loan repayment plan would reduce the monthly student loan payments to 10% of the participants income, and allow the participants student loan debt to be “wiped out” after 20 years of compliance within the program.
Providing tips on paying for college, and answering all of your student loan and college financial aid questions. Have a college financial aid question? Submit it on our Facebook page, or by hitting the Contact Us link below. Follow us on Twitter, or join us on Facebook for daily financial aid tips and new scholarship listings.