There was a big deal of interest in student loans this month. While Elizabeth Warren's Senate legislation was shut down by Senate Republicans, President Obama signed an executive order that eventually expands income-based repayment options to a lot more borrowers than were previously eligible. Before the executive order, income-based repayment plans were only an option for people who borrowed in 2007 or after.
Eventually, it should be available for people who had federal student loans before that, and caps repayment at 10% of "discretionary income." What does that mean? That's simply 10% of your income minus whatever the poverty level is for your household size. The loan can be forgiven after 20 years of on-time payments, or 10 years in a public service job.
This does not come into effect immediately--rules and regulations will need to be created, and it's aimed for the middle of 2015. In the meantime, see this page to find out what your federal loan forgiveness/repayment/ plans you might be eligible for.
Eventually, it should be available for people who had federal student loans before that, and caps repayment at 10% of "discretionary income." What does that mean? That's simply 10% of your income minus whatever the poverty level is for your household size. The loan can be forgiven after 20 years of on-time payments, or 10 years in a public service job.
This does not come into effect immediately--rules and regulations will need to be created, and it's aimed for the middle of 2015. In the meantime, see this page to find out what your federal loan forgiveness/repayment/ plans you might be eligible for.
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