Student Loan Help Is On The Way
Matt | On 30, Mar 2010
There was more to the health care bill than just health care itself.
President Obama made an appearance at Northern Virginia Community College and signed the approved reconciliation legislation from last week. In the bill that was passed last week, the American people also got a bonus in the education department. There are some important changes to how student loans are handled. Banks have essentially been cut out of the middle of the deal between you (borrower) and the government (lender). They were receiving a good chunk of money from handling student loan debt.
The $68 billion that will be saved over the next 11 years will be pumped right into expanding Pell Grants and making it easier to pay back the costs of those expensive educations. The extra money will also benefit community and historically black colleges and universities.
Starting with loans originated after July 2014, student loan repayments can only be 10 percent of discretionary income, instead of 15 percent. Also, if you maintain your payments, your loan will be forgiven after 20 years, instead of 25 years. If you’re in public service, forgiveness comes after year 10. Good stuff.
So, all of this sounds good for people who are trying to do something positive with their lives and actually expand their thinking. Do you know what some Republicans said? Sen. Lamar Alexander (R-TN) says the change will impact thousands of jobs in his state. Senate Minority Leader Mitch McConnell (R-KY) points to nearly 30,000 jobs that will be lost nationwide because of the cut in fees. HUH?? Are they telling us that it’s more important to let banks continue to swim in money at the expense of educating our people??? I mean, don’t banks pimp enough fees out of all of us? I’m just saying.