Concerns over student debt bring new modifications

The way student loans have been costing the U.S. economy, it was time the federal government to do something about it. Now, that they have decided and imposed new mandates, the consumers must be made aware about the alterations so that they can get a solid footing. Check out the changes in the federal loan program, which are going to affect the students in the near future.

What the new mandates come up with?

The latest changes in the federal student loan program will affect those consumers who’re planning to take out new loans to further their education, as well as those existing debtors who will be starting off with their repayment.
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Student loans: 5 Easy ways to ditch

All of us know that a student debt crisis is brewing, but no sign of respite is there in the air. Few non-governmental groups have come up with viable ideas and the federal government is also trying to make some amendments in their policies in order make student loan debt a bit easier to bear. But those who are nearing to their Grad. day or trying to service their debt, are not seeing any sign of hope.

Leading frugal lifestyle while in college and even after then can prove to be a bit beneficial, but won’t erase the complete scenario. Below we have compiled a few jobs that can give a boost to your college loan repayment endeavor.

1) Become a teacher

Nowadays, many schools desperately look for teachers to work on lower monthly paychecks or on high-demand programs. If you are a graduate and work as a teacher for at least 5 years, you may be able to get a huge portion of your loan forgiven. Though the exact payoff depends on the type of the loan, the benefits that you receive are certain.

2) Join the Peace Corps

If you have accrued huge student debt, enthused to see the world and desperate to fill out your resume, you shouldn’t wait anymore. The Peace Corps can cancel 70% of your Perkins student loan debt. However, if it is Stafford or consolidated loan, the deal is not that much appealing.
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Obama calls for student debt let off

President Obama, in an attempt to woo the youth in November’s election, is trying to compel lawmakers to cease the doubling of interest rates on some student loans, which is the second largest source of consumer debt in the nation after home mortgages.

Rates on some of the student loans that are backed by the US government are going to rise on July 1 from 3.4% to 6.8% if the Congress does not pay heed to Obama’s appeal for a one year let off.

Mitt Romney, the supposed Republican candidate for the presidential election in November, endorsed Obama’s appeal, even though some Republican’s within the Congress are skeptical about the reprieve. However, Obama’s let off plan, will do no help to Michele Johnson, a 30-year old music teacher living in NY who accrued around $120,000 in student debt.

Michele, who graduated back in 2004 and has been working in 12 schools since then, feels so much exhausted due to her student debt burden that she is ready to give up her teaching credential if all her debt is forgiven.

According to data compiled by the Consumer Financial Protection Bureau (CFPB) and the Federal Reserve, at $1 trillion, the student debt has already moved so far keeping auto loans and credit card debts far behind. Read more →