Feds lower payments on existing student loans


	Feds lower payments on existing student loans

masbury

7-1-2009 11:11 AM

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tags:

student loans

masbury says:

Ties loan payments to income level

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7-1-2009 11:46 AM

tanyamm

I wish they'd lower the interest payments on the Canadian student loans too. My daughter is working an almost full-time job and raising two children. Her student loan payment is almost half of her take-home pay, and my son recently lost his job due to the recession, he's on EI and they still want his extremely high student loan payment based on working income.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/f55899f8-d04c-4bdf-adb7-ea0a63ae7fd5/AEF26D91-04E1-4109-A651-4452A422206B/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.nytimes.com/2009/06/30/education/30college.html?em#" href="http://www.nytimes.com/2009/06/30/education/30college.html?em#" style="font-size: 11px;">www.nytimes.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.nytimes.com/2009/06/30/education/30college.html?em#"><NYT_HEADLINE type=" " version="1.0">
New Plan Ties Reduced College Loan Payments to Income
</NYT_HEADLINE></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.nytimes.com/2009/06/30/education/30college.html?em#"><P>For the first time in years, there is good news for college students who borrow to pay for their education. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.nytimes.com/2009/06/30/education/30college.html?em#"><P>Starting Wednesday, the federal <A title="More articles about the U.S. Department of Education." href="http://topics.nytimes.com/top/reference/timestopics/organizations/e/education_department/index.html?inline=nyt-org">Education Department</A> will begin offering a repayment plan that lets graduates reduce their loan payments, based on their income.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.nytimes.com/2009/06/30/education/30college.html?em#"><P>While the interest rate cut applies to new loans, the new repayment option is available to borrowers who took out federal loans or who used a federal consolidation loan to combine their higher-education debts. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.nytimes.com/2009/06/30/education/30college.html?em#"><P>The extended payment program, called <A title="income-based repayment" href="http://studentaid.ed.gov/PORTALSWebApp/students/english/IBRPlan.jsp">“income-based repayment,”</A> limits what borrowers have to pay to 15 percent of the difference between their gross income and 150 percent of <A title="poverty guidelines" href="http://aspe.hhs.gov/POVERTY/09poverty.shtml">federal poverty guidelines.</A> After borrowers make payments on loans for 25 years, the balance is forgiven. (The Education Department already offered an <A title="repayment plans" href="http://studentaid.ed.gov/PORTALSWebApp/students/english/OtherFormsOfRepay.jsp">“income-contingent” repayment plan,</A> which was similar, but less generous.)</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.nytimes.com/2009/06/30/education/30college.html?em#">the Education Department has set up a <A title="Education Department Web site" href="http://studentaid.ed.gov/PORTALSWebApp/students/english/IBRPlan.jsp">Web site</A> with a calculator</blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/AEF26D91-04E1-4109-A651-4452A422206B/blog/" title="blog or email this clip"><img src="http://content9.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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