After applying to the college, you always dream for the acceptance letter. But right at the same time you will also be afraid of the fee and accumulative debt that you have to pay in four years.
Worrying for it is not unusual as the default rate for student is as high as 9%, and students are facing very tough environment.
Government has introduced some of the incentives that will give aid to the student borrower. Though The government has paid attention to the students’ loan debt, and we hope the coming years will bring more expansion and financial sustenance for the students.
Reduction in interest rate: By incorporating the both bank based loan and direct loan, the interest rate will be reduced up to 1⁄2. Currently you won’t have the options for the consolidation program neither for bank based relief.
Opting for the consolidation, students won’t have to pay to several institutions, so its good option for it. To avoid any ambiguity, you can go for the option that has the one payment option offering a little reduction will be helpful.
Students pay their loan back depends upon the borrows net income. The interest has been caped at 10% from the previous that was 15%
New department set up by The Consumer Financial Protection Bureau: It is a new program launched by the Consumer Financial Protection Bureau. Specialist guiders known as the Student Debt Repayment Assistant will look upon the loan repayments and will guide students about their debt that they are supposed to pay after college.
Disclosure forms: The forms need to be more clarified that are employed to inform students about their financial assistance. It should be more simplified so parents and students can distinguish between the offered monies. Students as well as their parents must aware that what is being offered them as financial aid or scholarships. And what are various forms of loans that they have to repaid.