Student Loan Bailout: You Only Have to be Broke for Ten Years

By Elie Mystal from Above the Law, A Legal Tabloid

A new federal program promises student loan forgiveness for people who qualify after they've dutifully paid their debts for ten years. The program will also cap monthly loan payments depending on income. The act, passed in 2007, is set to become effective on July 1st. The National Law Journal reports the awesome news:

Some members of the class of 2009 will have less to complain about, however. A new federal program intended to help borrowers manage their student debt goes into effect on July 1. The legislation -- called the College Cost Reduction & Access Act -- will cap monthly loan payments according to income and forgive student debt balances after designated periods of time. For attorneys, the main beneficiaries will be those who go on to have long-term public interest careers. But the program will also make loan payments more affordable for all attorneys with high debt loads and relatively low incomes.

"There are a lot of things that are making it tough for new graduates, with the tight job market and the deferrals," said Heather Jarvis, a senior program manager at Equal Justice Works, an organization that encourages attorneys to undertake public interest law careers. "But there has never been a better time to graduate, as far as student loans."

Essentially this is the best piece of news for the class of 2009 since they got into law school in the first place. The government will forgive outstanding loans after ten years of payments for people who work in public interest and other qualifying organizations.

read the rest of the story at:  http://abovethelaw.com/2009/06/student_loan_bailout_you_only.php

Comments

[Robin Smith]

I would definitely go for a study loan for engineering degree of my brother..Thanks a lot for giving this information..

http://studentsblog2.blogspot.com/2009/09/secrets-to-avoid-debt.html

[Alena]

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Alena

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