New Student Loan Plan: Pay Your Loans Through Your Income
I knew our elected representatives would be working out some kind of formula, but the recent problems made one a bit let down. Interest rates rose and student loans got higher as fees and other charges rose burdening students. The costs had become so unbearable that I wondered how long it could go on like this. Seems our representatives had the same thought and decided to do something about it. A recent plan introduced by Rep. Tom Petri would allow students who took loans to repay them through a percentage of their incomes.
This plan aims to keep student loans affordable. Students who use the plan would know that if they had trouble finding work in any given year, or if they took a lower-income public service job, their repayments would automatically be stretched out. Any balance left after 25 years would be wiped clean. Americanchronicle.com reports:
Petri’s Income-Dependent Education Assistance (IDEA) Act of 2006 would create a new direct consolidation repayment option that all federal student loan borrowers would be eligible to participate in following graduation. Petri said that unlike current consolidation options, the IDEA Act would provide two key benefits for both borrowers and taxpayers.
Read more: Petri Introduces Student Loan Plan
If you enjoyed this article, please bookmark it at del.icio.us »