June 25, 2009
The Seattle Times has a story about a new program that could help some students better manage student loan payments. There are limitations and the program is not for everyone, but according to the article:
The Income Based Repayment program allows graduates to pay no more than 15 percent of their income toward monthly loan repayments. Those with moderate or low incomes will be required to pay much less than 15 percent, and in some cases, nothing at all — at least initially. The program will be particularly helpful to new graduates who have big loans and are entering a tough job market.
The program encompasses federal loans that account for about two-thirds of all student debt. Private loans taken out by students and federal loans taken out by parents do not qualify. If people are already in default on their loans, they won’t qualify for the program, either.
Kay Lewis, director of student financial aid at the University of Washington, said she plans to send a mass e-mail to the 4,100 students who graduated from the UW this year to let them know about the program. She said about half of those students left with loans.
You can read the entire article here.