Student Loan Reform

[lee9786]

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I'm surprised no one's posted this yet. What are you thoughts?

http://www.sbsun.com/news/ci_14704340

 

[illegallysmooth]

I'm surprised no one's posted this yet. What are you thoughts?

http://www.sbsun.com/news/ci_14704340

The link won't load properly for me, but from what I read the changes to student loan policies are positive. I'm particularly happy with the changes made to the IBR program, and I think it establishes a positive direction for those who are suspicious of the program's staying power.

 

[dinosims]

Unfortunately, it looks like IBR is only going to change (10% of income/20 year max) for those who take out their first fed loan on or after 2014.

http://www.ibrinfo.org/update_31910.vp.html

 

[pinipig523]

Unfortunately, it looks like IBR is only going to change (10% of income/20 year max) for those who take out their first fed loan on or after 2014.

http://www.ibrinfo.org/update_31910.vp.html

Oh... that sucks!!

 

[southerndoc]

I'm trying to figure out how this will affect my consolidated loan with Sallie Mae. Currently my interest rate is 2.875%, reduced 0.25% for making direct debit payments. Supposedly it gets reduced to 1.625% after making 48 months of consecutive on-time payments.

I have a feeling my borrower benefits will be taken away now that Sallie Mae will no longer be supported by government backing of student loans.

 

[pinipig523]

I'm trying to figure out how this will affect my consolidated loan with Sallie Mae. Currently my interest rate is 2.875%, reduced 0.25% for making direct debit payments. Supposedly it gets reduced to 1.625% after making 48 months of consecutive on-time payments.

I have a feeling my borrower benefits will be taken away now that Sallie Mae will no longer be supported by government backing of student loans.

Wait... what's this about? I think I missed it during my quick run-through of the document....???

 

[jenniferblue]

I have been looking all over for an answer to this question. Does anyone here know? If you refinance your student loans in 2014, will you qualify for the 10% cap and 20 year forgiveness?

 

[WACAT]

My understanding is no as of now since it is for first time loan holders as of 2014 and not new loans as of 2014.

 

[blanche]

My understanding is no as of now since it is for first time loan holders as of 2014 and not new loans as of 2014.

what is this 2014 loan refinance we speak of? does it apply to old loans (ala 2003-2007 styles?)

-b

 

[PostLessOne]

what is this 2014 loan refinance we speak of? does it apply to old loans (ala 2003-2007 styles?)

-b

It's always been possible to consolidate loans if you have multiple federal loans into a single loan. The financial benefits from doing this have been minimal because the interest rate of the new loan is the average interest rate of the old loans. The main reason to consolidate has been that you can then choose a longer repayment plan for the consolidated loan, or choose IBR or other repayment options even if you have PLUS loans among the student loans you took out.

 

[John Deere Gree]

It's always been possible to consolidate loans if you have multiple federal loans into a single loan. The financial benefits from doing this have been minimal because the interest rate of the new loan is the average interest rate of the old loans. The main reason to consolidate has been that you can then choose a longer repayment plan for the consolidated loan, or choose IBR or other repayment options even if you have PLUS loans among the student loans you took out.

Not necessarily. I consolidated my loans into groups based on interest rates.

I had some loans at 6.8%, some at 5% (both of those groups are now paid off). I still have loans with interest rates of 4.75%, 3.12%, and 2.5% with the plan to starting working on paying off the higher interst loans first.

Another reason to consolidate is to lock in your interest rate rather than play the will the interest rate go up or down July 1st of each year.