dcsimg
You are here:

Feds Working toward Student Loan Relief

As of July 1st 2009 students with federally guaranteed loans now have the option of a monthly payment cap based on income level.�� The College Cost Reduction and Access Act took effect on July 1st of this year, providing opportunities for a college loan payment cap.�� According to the terms of the bill any graduate with a federally guaranteed student loan or loans can apply for a limitation on the monthly payment to a sum equal to 15% of "discretionary income."�� The legislation defines discretionary income as any income over 150% of the poverty level.

According to the Washington Post that limitation can mean a lot to recent graduates who are coming out of college and finding a shortage of employment opportunities.�� Those who are forced to take a job at a lower pay scale than anticipated can find themselves scrambling to make loan payments and rental payments at the same time.�� While most student loans have federal guarantees, there is also a federal cap on total guaranteed debt.�� Students who need to borrow beyond this figure also have private student loans that will not be subject to payment limitation.

Also taking effect is a loan elimination opportunity as established by the Public Service Loan Forgiveness Program.�� This legislation will allow for loan forgiveness after a period of ten years, if the borrower is working for the government or for a non-profit organization. This program applies only to loans that have been obtained directly from the federal government and is also subject to pay scale limitations.

Despite the monthly payment cap, the loans continue to accrue interest.�� Loans may be forgiven after twenty five years under certain circumstances, but a capped loan payment will severely skew the reduction of loan principal.�� Students who need loan relief upon graduation may wish to readjust loan payments upwards after reaching some degree of financial stability.

An MBA degree graduate who cannot find a career-oriented job in business coming out of school can take a survival job and manage loan payments until such time as the job search effort is finally rewarded.�� That may not occur until the economy has righted itself to the degree that businesses are once again thinking about growth.�� The costs for higher education are being amplified by the lack of jobs available to newly minted and highly trained professionals.

This week the House of Representatives will take up the proposed Student Aid and Fiscal Responsibility Act of 2009 which will expand direct federal student lending and will hold interest rates at the current 3.4%, a figure which is set to double in 2012.�� More loans will be available and the application process will be simplified, according to the House Committee on Education and Labor.�� The goal for all of these bills is to reduce the debt factor in calculating the value of higher education.�� A student's post-graduate experience should not be defined by a mountain of debt accrued in the education process.

Search Schools

      
Matching School Ads
  • Argosy University

    Argosy University offers doctoral, master's, and bachelor's degree programs to students through its eight colleges.

    Programs

    • Business Administration (AS) (Online)
    • Psychology (BA) (Online)
    • Business Administration - Accounting (BS) (Online)
    • More...
    Location:
    Phoenix: 2233 West Dunlap Ave., Phoenix AZ 85021
    Argosy University Request Info »
  • University of San Francisco

    If you want to make the world a better place, start at the University of San Francisco. Our 21st-century mission to create a more humane and just world comes alive in our diverse learning community and is broadened by our global orientation. You are challenged to reach higher standards and to use your education to promote justice and serve the common good. At the University of San Francisco, youll find the excellence inherent in an institution established over 150 years ago, and inherent in nearly five centuries of Jesuit education.

    Programs

    • Online Associate Degree to Master Degree Nursing program
    • Online Bachelor Degree to Master Degree Nursing program
    • Master of Public Administration
    Location:
    San Francisco: 2130 Fulton St, , San Francisco CA
    University of San Francisco Request Info »
  • Rutgers University

    Founded in 1766, Rutgers, The State University of New Jersey, is a leading national public research university and the state’s preeminent, comprehensive public institution of higher learning.

    Programs

    • Online Master of Social Work
    Location:
    New Brunswick: 57 U.S. 1,, New Brunswick NJ 08901
    Rutgers University Request Info »
  • American University

    Change the World with American University

    Be a part of something bigger than yourself.

    Programs

    • Master of Science in Measurement & Evaluation
    • Master of Science in Nutrition Education
    • Master of Arts in Economics - Applied Economics
    • More...

    Location: Online

    American University Request Info »
  • California University of Pennsylvania

    Recognized by the U.S. News and World Report for: Best Online Programs, Bachelor’s 2017, Best Online Programs, Grad Education 2017 and Best Online Programs, Bachelor’s for Veterans 2017

    Programs

    • Legal Studies - Homeland Security (Master of Science) - Online
    • Wellness Coaching (Master of Science) - Online
    • Dual Concentration: Performance Enhancement, Wellness Coaching (Master of Science) - Online
    • More...
    Location:
    California: 250 University Ave,, California PA 15419
    California University of Pennsylvania Request Info »
  • Saint Xavier University

    Saint Xavier University, Chicago’s oldest Catholic university, has a long history of educating students to prepare them for professional success and lay the foundation for personal fulfillment.

    Programs

    • MSN in Clinical Leadership
    • MSN in Executive Leadership
    • MS in Finance

    Location: Online

    Saint Xavier University Request Info »
  • Milken Institute School of Public Health at the George Washington University

    Located in the heart of Washington, D.C. the Milken Institute School of Public Health at the George Washington University is dedicated to advancing the health of local, national and global communities.

    You need to have a Bachelor’s degree to be qualified for this school.

    Programs

    • Executive Master of Health Administration
    • Master of Public Health
    Location:
    Washington: 2121 I St NW,, Washington DC 20052
    Milken Institute School of Public Health at the George Washington University Request Info »
  • University of the Rockies

    Join the community of thought leaders at University of the Rockies. Pursue your graduate degree from the University’s School of Professional Psychology or School of Organizational Leadership.

    Programs

    • MA in Public Sociology
    • Doctor of Psychology, Mediation & Conflict Resolution
    • Doctor of Philosophy, Organizational Development and Leadership
    • More...

    Location: Online

    University of the Rockies Request Info »
  • Norwich University - Online

    Earn your Master's degree online from Norwich University.

    Programs

    • Master of Public Administration Online
    • Master of Arts in International Relations Online
    • Master of Civil Engineering Online
    • More...
    Location:
    Northfield: 158 Harmon Dr,, Northfield VT 05663
    Norwich University - Online Request Info »
  • USC Suzanne Dworak-Peck School of Social Work

    The MSW@USC is the first top-ranked MSW program offered nationally. Many online programs are limited to certain geographic areas or the availability of courses, making it necessary to travel to campus. Our program can be completed from virtually anywhere without the need to relocate to Southern California.

    Programs

    • Doctor of Social Work
    • Master of Social Work
    Location:
    Los Angeles: 3601 Watt Way, GFS-315, Los Angeles CA 90089
    USC Suzanne Dworak-Peck School of Social Work Request Info »
  • Matching School Ads

    Quick School Search

    College & Career Search Tools

    • Careers: Unsure about your career path? Study profiles of hundreds of professions.

    • Interviews: Professors and deans sit down with our team to give you unique insights on college life.

    • Military Education: Find only Military friendly online schools and campuses.

    • Student Reviews: Know before you go. Read student reviews on over 2000 accredited colleges. Write your own experience.