Federal Government Proposes New Student Loan Repayment Plan

The U.S. is considering a change to the student loan repayment system that would make automatic withdrawals from borrowers' paychecks.

2013-01-04

January 04, 2013 (Press-News.org) These days, it is nearly impossible to leave college without having taken out some student loans. Unfortunately, given the job market, finding a job to pay back those loans can seem like an equally daunting task.

The federal government is considering a change to the student loan repayment system, hoping that the move could reduce default rates while improving fairness in the system. The proposal, which is modeled after the loan repayment system in the United Kingdom, would make automatic withdrawals from borrowers' paychecks. Loan payments would be tied to borrowers' income levels, and would max out at 15 percent of income once basic living expenses are deducted.

The program would be administered by the U.S. Department of Education, meaning that private debt collectors could eventually be phased out of the student loan system altogether. The Education Department does have experience collecting on student loans -- currently, the department is responsible for garnishing wages and government payments to repay defaulted federal student loans.

The change is intended to help former students deal with what can sometimes be staggering debt loads. Americans own more than $1 trillion in student loan debt. There is now more student debt than credit card debt in the United States.

An increasing number of borrowers are falling behind on their debt obligations. Loan defaults are more than twice as large now as they were in 2003. In 2011, approximately 5 million student loan borrowers in the United States were in default on their loans. Proponents of the new plan argue that approximately 98 percent of borrowers would be able to keep up with their payments if they could participate in an income-based automatic repayment program.

Repaying student loans

Unlike most debts, student loans are not dischargeable in bankruptcy. Therefore, it is important the borrowers be careful about taking out more loans than they can afford and making an effort to repay them once they are out of school.

If you have recently finished school, keeping the following tips in mind can help you stay on top of your loan payments:
- Sign up for automatic payments. This way, you will not accidentally fall behind and risk late fees and credit score damage.
- Avoid choosing the extended repayment plan. Although your monthly payments will be lower, you will end up paying a lot more in interest.
- If you have more than one loan, focus on the one with the highest interest rate. You will end up paying less in the long term.

If you end up in financial trouble, do not wait to take action. There are a number of options available for struggling debtors, including deferrals and income-based repayment. If you are also having problems other forms of debt, you may find it helpful to talk with a bankruptcy attorney who can help you explore debt relief options.

Article provided by The Golden Law Group
Visit us at www.brandonlawyer.com

ELSE PRESS RELEASES FROM THIS DATE:

Changes to Wisconsin's Impaired Driving Law Needed to Address 'Huffing'

2013-01-04

In Wisconsin, patrolling officers have seen a sharp increase in the number of people "huffing" and driving. Huffing involves the inhaling of hazardous contents of a spray can to get high. While the law is still evolving to include this practice in standardized vehicle codes, to date, huffing can be a form of reckless driving, which endangers other motorists on the road. Huffing and car accident cases In recent months, Oshkosh Police responded to two traffic crashes involving drivers suspected of huffing hazardous substances. In November 2012, police received ...

Data Shows Lax Enforcement of Georgia Texting While Driving Law

2013-01-04

Texting while driving is against the law in Georgia. However, according to data published recently in the Atlanta Journal-Constitution, the prohibition may not be doing much to keep motorists safe. This is because law enforcement officials rarely punish drivers for violating the anti-texting law. The law went into effect on July 1, 2010. Since then, data from the Department of Driver Services shows that only 1,281 drivers have been convicted of texting while driving -- an average of less than 50 per month. The State Patrol says that its troopers only cite an average ...

Foreclosures Remain High in New Jersey

2013-01-04

Most of the country recently experienced a reprieve from the foreclosure epidemic plaguing the nation - unfortunately New Jersey was not included in this reprieve. While the nation as a whole enjoyed a 17 percent drop in the number of homes foreclosed upon - when compared to last year - New Jersey suffered an increase of more than one percent in foreclosed homes, according to a monthly report from CoreLogic. In addition, the same report shows that New Jersey ranks second in the nation in the percentage of homes in foreclosure - 7.7 percent in the process of defaulting, ...

Attend the Battle of Cowpens Anniversary Celebration and Stay at Nearby Hampton Inn Gaffney Hotel

2013-01-04

Hampton Inn Gaffney South Carolina Hotel offers convenient lodging to guests attending the Battle of Cowpens 232nd Anniversary Celebration. Taking place at Cowpens National Battlefield, SC on January 19-20, 2013, the celebration will include two days of special talks, guided battlefield walks, weapons firing, calvary, and domestic skills demonstration. All activities are FREE! Visit www.nps.gov/cowp/specialevents.htm for more information. Special presentations and featured authors will include: - Dr. Melissa Walker, Converse College, author of The Battles of Kings ...

New Health/Fitness Book Says a Personal Plan is the Key to Weight Loss Success

2013-01-04

"It isn't that diets don't help you lose weight," says Dr. Stan Spencer, author of a new book, The Diet Dropout's Guide to Natural Weight Loss (Fine Life Books: 1/1/2013). "The problem is that as soon as you quit the diet, the weight returns." "Think of excess fat as a collection of bad habits," he says. "Lose the habits and you will lose the fat. Each time you give up one of these bad habits (all other things being equal), you will lose fat until your body naturally settles at a lower weight." Dr. Spencer says the key to successfully ...

DT Plumbing & Heating Launches Homeowner Checklist for Winter Plumbing Problems

2013-01-04

After 10 years in service, DT Plumbing & Heating (www.dtplumbingandheating.co.uk) have put down a list of common plumbing problems in London. Protecting the home during the winter time is important because even small leaks can cause major issues and result in expensive repair costs. To be out well in advance can often help minimize costs and even reduce running costs. Below are some suggestions from DT Plumbing and Heating. To start with it's important to always insulate cold water pipes under the bath to avoid condensation and drips onto the floor. Call a certified ...

Prompt Proofing Blog Post: Happy New Year!

2013-01-04

Happy New Year! Happy New Year! Or should that be happy new year, or Happy New Year's? And what is the situation if you are talking about an event that will happen in the new year? This one causes many grammarians to disagree. This writer suggests the following as a consensus: If you are talking about how business will be next year or an event expected to take place next year then no capitalization is required if the term 'new year' is used. You simply have a noun - year - modified by an adjective - new. In the new year we expect to see a 10% increase in sales. If ...

Corcentric Presents a New Educational Webinar January 17th, "Just the Facts: A Look into the Types of AP Automation Solutions"

2013-01-04

Corcentric, a leading provider of Accounts Payable automation and electronic invoicing solutions, today announced they will be hosting a no-cost 60-minute educational Webinar titled "Just the Facts: A Look into the Types of AP Automation Solutions." This Webinar, hosted by Rob DeVincent, Corcentric's Vice President of Product Marketing, will take place on Thursday, January 17, 2012 at 2:00 PM ET/11:00 AM PT. Many organizations' Accounts Payable processes are burdened with finding lost invoices, resolving exceptions, and reconciling supplier disputes. With an ...

NEW! www.PartsforSnowPlows.com Has Discount OEM Meyer & Fisher Snow Plow Parts In Stock!

2013-01-04

NEW - www.partsforsnowplows.com is the most complete source of OEM Meyer and Fisher snow plow parts on the Internet - at discount prices! Check out www.partsforsnowplows.com for their incredible low prices on OEM Meyer and Fisher Snow plow parts - in-stock and ready to ship! Whether you're looking for Meyer Hydraulic Oil M1 15487, Meyer 2pc Filter 15619C, Meyer Controller Slik Stick 22092C, Meyer Plow Kit Markers 09916C, Meyer Solenoid Starter 15370, Meyer Pump Lift 15995, Meyer Yellow Spray Paint, Meyer lift units, Meyer jack stands, Meyer harness, Meyer Mush, ...

VII Peaks-KBR Co-Optivist Income BDC II Declares Special Distribution of $0.077 Per Share

2013-01-04

The Board of Directors of VII Peaks-KBR Co-Optivist Income BDC II, Inc. (the "Company") authorized and declared a special cash distribution equal to $0.077 per share, to be paid to stockholders of record at the close of business December 27, 2012, payable on January 17, 2013. This special distribution shall be paid exclusive of and in addition to the current annualized distribution of 7.35% per share, based on a $10.00 share price. On December 27, 2012, the Company also declared two semi-monthly distributions of $0.030625 per share each (an annualized ...

Federal Government Proposes New Student Loan Repayment Plan

ELSE PRESS RELEASES FROM THIS DATE:

LAST 30 PRESS RELEASES: