New Legislation Changes Student Loans
Updated: Aug 8
Hey financers!
There have been big changes to the rules and systems regarding student loans for college students.
Grad PLUS is being eliminated and there are now stricter borrowing caps on Parent PLUS. Many of the old payment plans like SAVE, PAYE, and IBR are being phased out and replaced with two options: Fixed repayment which can stretch for 10-25 years, or RAP (Repayment Assistance Plan) where repayments are based on your income, generally around 1-10%. There are fewer safety nets under this new plan and students may be stuck paying loans off for up to 30 years as of now. Always keep finances in mind when deciding where to go to college and have a clear plan to pay for college.
This information is coming from the US Department of Education's website: https://www.ed.gov/about/news/press-release/us-department-of-education-finalizes-landmark-rule-lower-college-costs-and-simplify-student-loan-repayment
Always stay mindful about your financial future! Debt is bad.
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