Will new rules have impact on students?
Texas Insider Report: WASHINGTON D.C. The plan will let borrowers consolidate their government & government-backed student loans into one monthly payment. And the payment will be based upon a lower interest rate. It will also give people the right to cap their loan payments at 10 of their income down from the current 15 Limit.
Sound familiar? The Obama Administration unveiled its plan to reduce the burden of student loan debt earlier this week but will the Obama plan make a difference?
Student loan debt levels across America today surpasses the total amount of outstanding credit card debt in the United States burdening college grads with not only staggering levels of debt but a dependence upon borrowing.
The Obama Administrations plan will allow student debt to be forgiven after 20 years compared with 25 years under the law now.
Will it help prevent defaults?
Or will it lead todays students to borrow more if they view their debts as potentially negotiable and believe the government is assuming more of the risk?
What should government do about student debt and the college loan industry if anything?
Only time will tell.
