Many people who decide to pursue higher education end up paying the price for years. Without scholarships or other assistance, just one year at a private institution can cost upwards of $50,000. The only option many students have is to take out large loans.Effective July 1, however, a new plan will allow lower income graduates to make smaller monthly payments.
This relief comes in addition to a plan the government already offers to forgive some of the debt of students who pursue public service career paths. After a graduate makes 120 payments, the remainder of the loan is forgiven. The only loans that are eligible for forgiveness, however, are the Federal Direct Stafford Loan, the PLUS loan, the graduate PLUS, or the Federal Direct Consolidation loan.
"Typically, it is projected that a borrower who performs public service under this program will repay only about one-fourth to one-half as much money as a borrower who does not," Peter Mazareas, vice chairman of the College Savings Foundation, a Washington-based advocacy association, says to The Boston Globe.
Some loan forgiveness programs are also based on the state in which the graduate lives, and Massachusetts, for example, offers additional programs. For graduates who pursue professions related to teaching young children or other forms of childcare, there are forgiveness opportunities available.
In addition, the federal government has discussed increasing its involvement in helping graduates handle the burden of student loan debt. Loan forgiveness or assistance could become available to those pursuing a wider range of professions. For more information on Massachusetts loan forgiveness, click here.
--Bridget O'Sullivan
No comments:
Post a Comment