Get A Degree, Get Student Loans
We can’t deny that there are a number of college graduates these days who face great problems on their student loans. There are so many college borrowers actually who have called for debt relief but former president Barack Obama proposed for faster government student loans as well as loan forgiveness plans to be able to help borrowers repay debts and boost American economy at the same time.
The decision of former president to expand the education loan forgiveness to greater number of students might mean that the loans you took out to pay your education will now be easier to handle. As a matter of fact, the main objective of this particular plan is to make loan consolidation at lower rate of interest which offers 3 major features that are known to benefit struggling college graduates to pay their loans.
Repayment term – borrowers can pay lower interests over the course of the loan as every loan that has to be consolidated will be able to retain its initial repayment terms.
Interest rate – there is a fixed rate not exceeding 8.25 percent after applying for the .25 percent interest reduction to the qualifying loans being consolidated. The lower rates also means that there is going to be more monthly payment for the principal balance.
Electronic debit payment benefit – in regards to those who’ve taken advantage of this consolidation plan, they’ll be entitled for another .25 percent interest reduction in case that their educational loan is paid through Department of Education’s automatic debit system.
Apart from that, the government is convincing those people who have government and private loans for students to be allowed to consolidate their debts into new government loan. Such move can dramatically slash their interest rate and at the same time, save money throughout the process since the federal government will speed up the rollout of income-based program. College graduates on the other hand are still responsible in keeping to make payments onto their loans but the revised payments would now be capped at just 10 percent of their income.
The best of this is that, for all those who have borrowed tens of thousands of dollars in an effort to finance their education, their loans will be forgiven after twenty years. With this new law passed, it has been estimated that it can provide assistance to countless of college students to finish their education ranging from 450000 to 6000000.
So, if you are having problems with your student loans and want financing for such, it will be ideal to look for student loans company and apply for one. This way, you can finish your education and pay the debts later when working.