Tuesday, September 8, 2009
New law to help in paying back college loans (By Sally Holland)
Posted by Alma Zhumagulova
The College Cost Reduction and Access Act that created the new Income-Based Repayment program was signed into law in 2007 to help make student loan payments more manageable.
However, the Department of Education warns that making smaller loan payments may actually increase the amount that borrowers will need to pay back in the long run because interest will accrue for a longer period of time. On the other hand, if the borrowers meet certain criteria, their remaining student loan debt can be dropped after 25 years.
Morgan is not the only one struggling in the weak economy. According to Rep. George Miller, the Democratic chairman of the House committee that worked on the bill, "The U.S. college affordability crisis is only worsening and to top it off, this year's graduating class is about to enter the toughest job market for college graduates in 25 years."
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