Update on Changes to Student Loans
Earlier this year I wrote a post on possible changes to student loan forgiveness. Well, as with most things related to the government things are moving slower than expected and it is unlikely we will see any changes to student loans this year.
The PROSPER Act
“Legislation to reauthorize the act put forward by House Republicans in December would have:
- Eliminated PLUS loans for graduate studentsand placed new restrictions on parent PLUS borrowing
- Revamped income-driven repayment plans and scaled back loan forgiveness for future borrowers
- Eliminated an interest subsidy on loans to low-income students
Those moves would have saved taxpayers about $58.5 billion over a decade, according to an analysis published by the Congressional Budget Office in February.
On the plus side for borrowers, the PROSPER Act would have:
- Eliminated the upfront feescurrently charged on federal student loans, saving borrowers $14.5 billion through 2027.
- Provided an additional $300 in Pell grant funding a year to students taking at least 15 credits per semester, at a cost of $7.3 billion to taxpayers over a decade, the CBO estimated.”
[jetpack_subscription_form title=”Don’t miss out on information on PA student loans” subscribe_text=”Enter your email address to receive future posts by email for FREE” subscribe_button=”Sign Me Up”]
We can’t always control what regulations happen or when they happen, so it is important to stay on top of changes to student loans that may affect you. What we can control is what we already know: interest rates have been on the rise this year, and predictions are that they are going to continue to rise.
If you know you don’t qualify for student loan forgiveness or aren’t in an income driven repayment plan than refinancing them might be the best option for you. Refinancing them now, before interest rates increase would be a good decision. If you’re not sure where to start I suggest checking with multiple lenders to compare interest rates. If you use credible.com you can get multiple quotes from different companies at one time.
This does not mean you have to use them, but it is a great starting point. If you do decide to refinance your student loans with Credible use this link to receive a $200 bonus.
Have you refinanced your student loans recently? Planning on doing it this year? Please comment below the original post, sign up to receive future posts by email and share with your friends!
