Yesterday, President Obama signed an executive order that will cap student loan payments for another few million individuals. You can read about it here. The law will cap loan payments at 10% of income. If you recently started paying on your student loans, you probably already have this option. This order is more for those who borrowed between 2007 and 2011, because those who borrowed after 2011, is covered under student loan laws that were signed in 2010 This plan is set to take effect after December 2015.
I am sure you have already heard of the abysmal numbers regarding student loan debts and what not, so I’m not gonna waste anymore internet space on that. What I will blurb about is the not so many number of individuals who are taking advantage of student loan re-payment programs. These laws are pretty much useless is people don’t take advantage of them. Numbers say that out of a bunch of million of people who qualify for re-payment programs such as the one the Presidents signed today, only like 200,000 are actually enrolled in them. So , it kind of losses its essence. And, paying 10% doesn’t have to be permanent, just for that time that you need a little help, while waiting for that dream job that will end your student loan misery, like becoming a superstar politician.
Anyways, in addition to signing the new order, the President is also endorsing another piece of student loan legislation that will allow individuals to refinance their student loans later on. This particular law is going to go through some rough waters as the partisan claws are already out against it in Congress. I’ve read that all hell will break lose before it passes anywhere in Congress, since a similar bill has been rejected like 8 times already.
**Image from google.com**