Obama's new student loan proposals

Did you know that Americans owe more in student loans than credit cards?

On October 26, 2011, President Obama is proposing new student loan repayment rules.

Because student loan is a huge drain on people, and college graduates are saddled with mountains of debt, the president is trying to ease the burden.

Remember that all direct student loans were turned over to the federal government.

Here are some highlights of the new student loan repayment proposals:

Starting in 2012, the most you will have to pay for a student loan payment is 10% of your income. This was supposed to take effect in 2014, Obama is moving it up.

Your federal student loans can be bundled together, giving you one payment, maybe lower. This may come with a reduction of 0.5% on your interest, further lowering your payment.

After 20 years of on time student loan payments, the rest will be forgiven. Currently this is at 25.

So, this may be some good news for recent college graduates. The job market is tough, and you still have to repay your student loans.

However, if you are a current college student, taking out numerous student loans is really a bad idea. You are better off working for money, getting grants, and applying for as many scholarships as you can. Student loans, even with the new rules, will still be burdensome.

More information:

>>Student Loan Consolidation.

>>Repaying Student Loans.