Friday, June 13, 2014

The surprising winners of Obama's student-loan program

The surprising winners of Obama's student-loan program | WashingtonExaminer.com:
Students who took out big loans for graduate school and those with higher incomes stand the most to gain financially under President Obama's expansion of the federal government's loan forgiveness program.
Lawyers, doctors and other highly trained professionals who utilized federal loans throughout their post-high school education could walk away with most or all of their graduate school debt forgiven by the federal government under the program, say experts.
“You can roll it all into one balance and it has a really powerful effect,” said Jason Delisle, director of the Federal Education Budget Project for the New America Foundation, a nonpartisan think tank.
“The chances that you will fully repay your grad school debt are very slim.”
Obama on Monday signed an executive order that expands to as many as 5 million people a program allowing federal student loan holders to cap monthly payments at 10 percent of adjusted gross income.
The program also includes debt forgiveness after 10 years for those who work for 501(c)(3) non-profits or in the public sector. 
For those in the private sector, they can stop paying off their loans after 20 years.

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