User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


68° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

KELOLAND.com | Sioux Falls News & Weather, South Dakota News & Weather, Minnesota and Iowa News

[0] My Saved Articles
Find local businesses
on the KELO Pages!

 

Loan Repayment Program To Help Graduates

June 24, 2009, 5:52 PM by Courtney Zieller

Graduating college is a huge accomplishment but the debt you're sometimes left with can be alarming for many -- which is why the government is taking action. A new law going into effect next week is aimed at helping students repay their loans.

According to finaid.org, the average student graduates with about $23,000 in student loan debt but soon students will be able apply for a new repayment program to help make paying off that debt more manageable.

The Federal College Cost Reduction and Access Act creates a new loan repayment program called the Income-Based Repayment program. It's designed for students who have high loan debts and low income. Under the program, a former student's monthly payments would be reduced to just 15 percent of their adjusted gross income. Those payments will pay off the interest owed first, then any loan fees, and finally the principal.

A student's income will be re-considered each year in order to qualify and once the former student makes enough money, their payments will revert back to standard amounts.

There is another way to reduce how much is owed: Under the program, borrowers working in some public service jobs could also have a portion of their loans written off after 10 years of service. Even if you've fallen behind on student loan payments, you could still be eligible for the program.

The program begins July 1.

There is one warning:  Because former students will be making smaller payments, they'll also likely be paying back their loans over a longer period of time. On the other hand, if they meet certain criteria, their remaining student loan debt could be dropped entirely after 25 years.

More information on Income-Based Repayment

Previous Story

Next Story




 
Find Local Businesses on KELO Pages!

You may also like

Charges Filed After Baby Hurt At Day Care

8/19/2014 11:13 AM

A Sioux Falls day care provider faces charges after a child in her care was hospitalized.

Full Story
SUV Driver Ticketed Following Deadly Crash

8/18/2014 11:35 AM

Sioux Falls Police have ticketed a 26-year-old driver for her involvement in a deadly bicycle crash last month.

Full Story
Illinois Man Found Dead In The Black Hills

8/17/2014 11:30 AM

Authorities say a 23-year-old Illinois man who was reported missing in early August was found dead in the Black Hills National Forest.

Full Story
Father In NW Iowa Murder Case Died Of Natural Causes

8/20/2014 9:44 AM

Autopsy results are back on a northwest Iowa man who was found dead along with his wife in July.

Full Story
Sioux Falls Police Searching For Assault Suspect

8/20/2014 11:49 AM

Authorities are looking for a 19-year-old man who assaulted and kidnapped his 17-year-old girlfriend.

Full Story


Events