Thursday, September 5, 2013

The Obama Administration's Reforms On Educational Loans


Current Administration's Goals For College Graduates

The goal of the current administration is for the United States to have the highest proportion of college graduates in the world by 2020. To achieve it, the White House is taking a set of drastic steps to ensure that college is more affordable for everyone in the United States looking to pursue a education. Because the average debt after graduation is $23,000, the federal government is taking steps to make loans more affordable, and thus the goal more attainable.

New Laws Allow Affordable Rates

One of the ways in which this is being done is through a new law that allows students to repay their loans at a more affordable pace. First, federal student loan payments are capped at only 10% per month. This allows the loan to be repaid in a way which is affordable to the borrower. The 10% cap will make it possible for you to meet your day to day expenses while still paying off your student loans in the event that you find out that your loans are consuming a large portion of your salary. This will also make it easier for most people to continue their education and go back to school.

Loans Repayable Faster

If you:

  • Join the military

  • Teach

  • Work as a nurse

  • Do any work of national importance

your loan will be completely forgiven in 10 years. For everyone else, the time to forgive the loan will be 20 years. This will ensure that you are not paying a student loan for the rest of your life.

Tax Credits For Affordability

The federal government is also providing tax credits to make going back to school much more affordable. Tax credits make sure that your student loans will be paid for and that there is no need to worry about your loans costing a lot of money in the future and make it less expensive now to go back to school. For those whom would like to save on taxes and have a better future, then going back to school is a fantastic option.

Online Students Covered Too

There is also more positive news to come from this: online schools are covered as well.
For those whom do not have the time to go to a traditional college campus, a student loan will cover the cost of going to an online school. Student loans make going back to school much more affordable for many students, especially those whom are struggling to pay bills back. For those whom are in that category, then finding the right loan will help you get to where you need to go. Student loans are not just for those whom go to traditional campuses for classes and school, but for those going back to school online as well.

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