Sorry for my absence, I ran off for a girls weekend and have been drowning in my work ever since. An article caught my eye this morning and I wanted to reshare it as soon as I could.
Yesterday the White House announced two new plans from the Department of Education offering relief to federal student loan borrowers. President Obama is expected to speak more on it today. You can read the article here, but I've outlined some of the key points below. The programs are set to go in effect January of 2012.
- Limited time interest rate reduction of 0.5% for consolidation of Direct Loans and Federal Family Education Loans (think Stafford, etc.)
- Preserves the cost of the loan, but will offer a 10% income-based repayment plan instead of 15%.
- Loan forgiveness after 20 years instead of 25.
- College graduates who are unemployed with no monthly income will owe no payment.
- Same debt forgiveness program for those who work in public service or non-profits for 10 years.
and just another point of interest...
- $24,000 - Average student loan debt for a 2009 graduate
- 9.4% - The unemployment rate for college graduates 24 and younger.
Over and Out,