President Obama announced plans to assist students reduce their loan debt. Basically he is moving up the timeline for enacting the revised Income Based Repayment option for Federal Direct Student Loans. This plan reduces loan payment from 15% to 10% of discretionary income.
The plan also includes a special interest discount for consolidating the former Federal Family Education Loans with Federal Direct Loans. The discount is for to .5% and for a limited time.
It was also announced that the Department of Education has teamed up with the Consumer Financial Protection Bureau to launch a new “Know Before You Owe” project.This initiative is aimed at creating a model financial aid disclosure form. Colleges and universities could use to help students better understand the type and amount of aid they qualify for and easily compare aid packages offered by different institutions.
To read more about the plan, click on the link above for the press release at http://www.whitehouse.gov/.