New Steps by Obama Administration to Help Student Borrowers

On October 25, 2011, the Obama Administration announced important and timely new steps to help struggling student loan borrowers.

The Federal government introduced the "Pay As You Earn" proposal which will allow up to 1.6 million current students to cap their loan payments at 10 percent of their income starting as early as next year, with forgiveness after 20 rather than 25 years of responsible payments

This proposal that will give borrowers the chance to better manage their student debt by consolidating their federal student loans into a single Direct Consolidation loan and receive an interest rate reduction of up to 0.5 percent.

For more information
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