There is good news for those with student loan debt. Last week, the White House rolled out a plan to make it easier for graduates to enroll in a special program that caps loan repayment, based on income. Under the present terms of the 4-year-old Income-Based Repayment Plan, graduates who enroll get charged 15% of their monthly discretionary income to pay off loans. All debt is forgiven after 25 years.
President Obama directed the education agency to create a new way to allow students to enroll into the income-based loan program online, with a single click. Graduates will be able to upload financial data directly from the IRS — instead of filling out an application with information from a personal income tax filing. Currently, students can only enroll in the program by first contacting student loan servicers, and the process can take up to six weeks, education experts say. This new move, to go into effect later this fall, would allow students to bypass servicers to enroll on their own, via the Web.
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