Gov't Program to Reduce or Forgive Student Loan Payments

I had never heard of this before, and I'm not sure if that's because it wasn't advertised much, or because I don't have federal student loans so nobody bothered to tell me. On the chance that it wasn't advertised much and there are many people that could qualify for this great program but aren't using it, I decided to post about it here. I'll be brief and let you get the info from the people who know it best.

In 2007, U.S. Congress enacted the The College Cost Reduction and Access Act (H.R. 2669). Most notably, it created a programs for Income-Based Repayment (IBR) and Public Service Loan Forgiveness (PSLF). IBR helps a lot of people in making payments more affordable according to income level and family size. Also, after 25 years of paying loans, the balance is forgiven. PSLF allows people who work full time in the public sector or nonprofits to be released from debt after only 10 years. Pretty exciting.

To learn more, watch the video below, or visit one of the following sites:
IBRinfo.org has explanations of who qualifies, a calculator to figure how much you can save, and directions on how to apply for the program. It is also where the video below is posted.
FinAid.org gives a good summary of the provisions
NASFAA has a summary of the entire CCRA Act.



Pass along to others who you think might be able to benefit (meaning anyone who has student loans)!

And for some accountability....
22% of the House and 12% of the Senate voted against this bill to make college more affordable and to encourage employment in the public and nonprofit sector. All of the "nay" votes came from Republicans. See how your Representative or Senator voted at www.govtrack.us