Student Loans: The New Option

Nov 9, 2012
by: msprinkle

Previously I talked about how students, especially high school students are worried about student loans when trying to plan on where to attend college next year. Not only is this a stressful time for high school seniors, but also for recently graduated college students who have to begin to pay these loans. Recently a new student loan repayment option has gone into effect. This new option is called the Pay As You Earn plan, and was issued by the Department of Education last Thursday. This new income-driven payment option gives hope to many of those that have federal loans. By basing the amount you pay by the income you are making helps many freshly graduated students avoid default. This new plan provides that you only have to pay 10% of your income, which is lower than the previous plans that are circulating right now. This plan is aimed at helping recent undergraduates by managing student debt, making it harder to default, and providing relief with an easier plan that works with your income rate.


Well done!

Submitted by ojloveland on Mon, 2012-11-12 00:43.

Mariah, as a high school senior myself who may have to have student loans myself, I found this post very informative. I was not aware of this new "student loan repayment option" that Obama started, and I really think it is a great policy. So many students rely on student loans, and it is sad to hear stories of how much debt people pile up over time just for their education. I believe that with this new policy going into effect, it will change so many people's lives for the better. Obama is very strong on education, and I think that having this new system it will really lead America to a better brighter future. Thank you for discussing such an important topic, and really explaining it. Well done,
Olivia Loveland.