Wednesday, October 26, 2011

White House Plan Lowers Loan Payments for 14,000 Idaho Students

Posted By on Wed, Oct 26, 2011 at 11:24 AM

The White House estimates that more than 14,000 Idaho students would benefit for its new plan to lower student loan payments.

The Obama administration's "pay as you earn" proposal aims to cap student loan payments at 10 perecent of discretionary income as early as next year, and would also forgive the balance of a student's debt after 20 years of payments. Additionally, the plan would allow millions of the nation's students and recent college graduates to consolidate their loans and reduce their interest rates.

"Steps like these won't take the place of the bold action we need from Congress to boost our economy and create jobs, but they will make a difference," said President Barack Obama at a noontime announcement at the White House.

Current law allows borrowers to limit their loan payments to 15 percent of their discretionary income and forgives all remaining debt after 25 years.

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