Obama to reduce student loan burden
The new proposal (carried out by Executive Order, which means it will really happen) caps loan payments at 10% of discretionary income rather than the current 15%. Congress had already passed a law which lowered the cap from 15% to 10% in 2014. Obama’s plan just moves up the date.
The real beauty of this plan comes from the loan forgiveness programs attached or already in existence. Obama appears to have moved the loan forgiveness from 25 year to 20 years under his Executive Order. Others, such as myself, will be able to take advantage of the public service loan forgiveness program and get the balance of my loans forgiven after 10 years.
(Only 7 years left)!
