College Crunch

By the time you finish your college experience, you can be burdened with a huge debt, equivalent to most entry level houses and because of this, you might not be able to purchase a house. Some people are still paying back their loans ten or more years after their graduation. Thankfully, this will all be changing, as a new student loan program will make for better student loan repayments.

Starting on July 1st, the Income-Based Repayment program will allow federal student loan holders, those with loans under the Direct Loan or Federal Family Education Loan programs, to request the government limit the repayments on their loans to fifteen percent of their income. The payment terms are set based on income and family size. This could be a huge reduction for many the feel bogged down by payments, and it could also mean an end to lifetime repayment as loans are wiped clean after twenty-five years, or ten years for those working in the public or non-profit sector.

To many, this might only give breathing room when it comes to thinking about College financial matters, but for others, this will hopefully mean that they can live their lives, rather than spending a decade working only to repay their education and putting everything else on hold.

Check out our College Finance section for more details.