Obama to revise student loan repayment?
Submitted by ejwblog on Tue, 01/26/2010 - 14:13
On January 25, 2010, President Obama announced his plan to improve Income-Based Repayment (IBR), a provision under the College Cost Reduction and Access Act that provides relief for those with high student debt. IBR allows for much reduced monthly student loan payments for those with high debt-to-income ratios. For more information on IBR, visit Equal Justice Works' student debt relief resources section and http://ibrinfo.org. President Obama proposes lowering the cap on federal student loan payments from 15 to 10 percent of discretionary income, and forgiving any remaining debt after 20 years of payments, rather than the current 25 years. Those in public service, including nonprofit and government employees, can get their remaining debt forgiven after 10 years. Equal Justice Works applauds the President’s plan to increase student debt relief by improving IBR. I look forward to hearing the President set out this timely proposal in his State of the Union address. -Heather Back to Equal Justice Works Blog