New Fed student loans? (salary, programs, private, require)

[msta999]

Anyone have any info on this? It sounds like, parents can keep the money's they have put away for their child's college and let them use Fed student loans for it all, then the kid makes payments for 10 years and the loan goes away................?

I think I heard, the student may have to do some kind of community service also?

[Ceece]

You can do a search and read an article online but if you insist...

There is a cap of 10% of salary for repayments (down from the current 15%), and assuming payments are kept up and all the other rules and reg's have been followed the loan may be forgiven after 20 years (down from the current 25).

No community service is required. However, there are programs in place now that will forgive part of the loan if students enter specific fields of work and/or volunteer organizations for a set amount of time. I don't think anything changes with the new law.

Most of the changes are internal and administrative and don't effect student or parents, except that there will be more loan money available.

[msta999]

Thanks, that is kind of what I heard. I also heard the feds will tack 4% interest on current rates, which they will use to help pay for part of the new health care bill. If that is so, then payments will be higher, than they would have been if they just left it alone.

[Ceece]

Originally Posted by msta999

Thanks, that is kind of what I heard. I also heard the feds will tack 4% interest on current rates, which they will use to help pay for part of the new health care bill. If that is so, then payments will be higher, than they would have been if they just left it alone.

You "hear" a lot of weird and incorrect things dontcha? That isn't happening.

I suggest you stop listening to whoever you listen to and read up on stuff yourself.

[K-Luv]

Originally Posted by Ceece

You can do a search and read an article online but if you insist...

There is a cap of 10% of salary for repayments (down from the current 15%), and assuming payments are kept up and all the other rules and reg's have been followed the loan may be forgiven after 20 years (down from the current 25).

No community service is required. However, there are programs in place now that will forgive part of the loan if students enter specific fields of work and/or volunteer organizations for a set amount of time. I don't think anything changes with the new law.

Most of the changes are internal and administrative and don't effect student or parents, except that there will be more loan money available.

Some 'Fed' was on NPR talking about this the other day. I believe that he said that after ten years the loan would be forgiven, but I could be wrong as he was also talking about college grads entering the public service sector, so the ten years may only apply to that.

To my knowledge, the 'new' Federal student loans still go through private banks and are only regulated by the Federal government.

[msta999]

Originally Posted by Ceece

You "hear" a lot of weird and incorrect things dontcha? That isn't happening.

I suggest you stop listening to whoever you listen to and read up on stuff yourself.

It was from "our" elected leaders. couldn't find the one I watch a few days ago.


YouTube - Sen. Alexander Discusses His Student Loan Amendment on Fox News


YouTube - Obama Care : Students Are Indentured Slaves To Health Care !!!



Obama Overhauls Student Loans - Video - FoxNews.com

[msta999]

Originally Posted by Ceece

You can do a search and read an article online but if you insist...

There is a cap of 10% of salary for repayments (down from the current 15%), and assuming payments are kept up and all the other rules and reg's have been followed the loan may be forgiven after 20 years (down from the current 25).

No community service is required. However, there are programs in place now that will forgive part of the loan if students enter specific fields of work and/or volunteer organizations for a set amount of time. I don't think anything changes with the new law.

Most of the changes are internal and administrative and don't effect student or parents, except that there will be more loan money available.

I did search for the bill, but couldn't find it.

[Ceece]

Originally Posted by K-Luv

Some 'Fed' was on NPR talking about this the other day. I believe that he said that after ten years the loan would be forgiven, but I could be wrong as he was also talking about college grads entering the public service sector, so the ten years may only apply to that.

To my knowledge, the 'new' Federal student loans still go through private banks and are only regulated by the Federal government.

No, they will not go through private banks. That was the entire point of this change.


Here is a simple Q&A :

Big Changes Coming to Student Loans - US News and World Report

[Ceece]

Originally Posted by msta999

It was from "our" elected leaders. couldn't find the one I watch a few days ago.


YouTube - Sen. Alexander Discusses His Student Loan Amendment on Fox News


YouTube - Obama Care : Students Are Indentured Slaves To Health Care !!!



Obama Overhauls Student Loans - Video - FoxNews.com

Yeah well you might want to do some research yourself, I'm not going to get into the whole "everything obama does is evil" debates brougt to us by Fox News.

Big Changes Coming to Student Loans - US News and World Report

[msta999]

Has nothing to do with good/bad Obama issue.

Has everything to do with keeping my cash. If I can let my kids finance all of their college and then have them work in some community service for a little while and only have to pay back, only a portion of the loan (sounds like less than half), I'm all for it. I have been putting money away for my kids education for well over a decade. If I can keep that money, I want too. Sounds like using it for their college expenses would be a waist, if I can get it paid for by the gov instead.