30. March 2010 07:13
Last week the U.S. Senate voted to eliminate private lenders from its subsidized student-loan programs. With the new law, students would borrow straight from the governement at the same interest rates (6 - 8.5%), but costs the US Treasury less money since the government can borrow money more cheaply than private the private sector can.
You many be wondering how this new bill affects your student loan balance. According to the White House, "New borrowers who assume loans after July 1, 2014, will be able to cap their student loan repayments at 10 percent of their discretionary income and, if they keep up with their payments over time, will have the balance forgiven after 20 years."
Additional details can be found at http://thechoice.blogs.nytimes.com/2010/03/22/loan-q-a/