Specifics about the New Student Loan Law

The new student loan legislation provides the following adjustments to the current student loan system:

– Larger Pell Grants over time

– Increased investment in community colleges

– Increased investment in institutions that serve minority populations

– Expands income-based repayment program. “New borrowers who assume loans after July 1, 2014, will be able to cap their student loan repayments at 10 percent of their discretionary income and, if they keep up with their payments over time, will have the balance forgiven after 20 years. Public service workers – such as teachers, nurses, and those in military service – will see any remaining debt forgiven after just 10 years. More than 1.2 million new borrowers are projected to qualify and take part in the expanded program.”

– Federal student loans will now be made directly to students with banks simply servicing the loans

See the link above for more information. Is this good or bad for America’s students?

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