| This is good news for those who are facing problems | | | | Aside from this, student borrowers who also took |
| regarding paying debts: there is a newly released | | | | posts in public service could have the balance of their |
| program that makes it possible to tie up student loan | | | | loans forgiven after making the payments without fail |
| on income and erase balance on the loan after a span | | | | in 10 years. According to reports, this would not cost |
| of 25 years. For those holding a post in public service | | | | the government so much because there will be |
| could be granted pardon on debt after only 10 years. | | | | changes in the process by which it handles lenders of |
| Getting a degree comes with a hefty price tag which | | | | student loans. |
| is why many students aiming for a college diploma | | | | The question now becomes this: Will the government |
| accumulate debt to sustain their education. In fact, a | | | | bailout on student loans? The answer, however, is not |
| huge percentage of those who graduated from | | | | that definite, but more leaning on a resounding "Maybe". |
| college this year, about 33% of 3 million seniors, went | | | | The only definite response as of now is that the IBR |
| for loans to earn the degree. Each has about $22,500 | | | | program has a provision that will lower the monthly |
| worth of student loan. And those who would go for | | | | fees of borrowers who have incurred student loan |
| graduate studies would have to incur more debt. | | | | debt who cannot make the entire payment on the |
| Because of the recession, the chances of graduates | | | | standard 10-year payment period. In a study conducted |
| to pay for incurred loans become slim. This is why an | | | | by the Project on Student Debt, it was found out that |
| adviser of the secretary of education is projecting that | | | | this provision could very well help nearly 1 million |
| many of these loans would have to go for default. But | | | | student-loan borrowers in America. And the new |
| there is an existing solution to put a cap on this | | | | provision takes so much burdens off the borrowers' |
| impending dilemma. The College Cost Reduction and | | | | back because aside from lower payments, graduates |
| Access Act of 2007 included a provision that makes it | | | | who have been paying their debts for 25 years can |
| possible to reduce monthly payments of student | | | | be granted pardon for their balances after the said |
| borrowers who qualify under the Income-Based | | | | period. Any of the remaining loan balances will be |
| Repayment plan that was implemented in July. | | | | forgiven after a payment period of 25 years. |