Monday, December 7, 2009

A Little Less Bah-HumBug: Good News on Student Loan Payment and Forgiveness

It is a good thing to hear good news during the holidays… especially good news about money.

As summarized here, the College Cost Reduction and Access Act helps in regard to student loan payment in three ways: (1) It will bring down loan interest rates down to 3.4% in 2011. (2) Beginning July 2009, borrowers can repay their loans with an income based repayment plan. (3) If the borrower has a Federal Direct Loan, they can participate in Public Service Loan Forgiveness. Under these stipulations, the William D. Ford Federal Direct Loan Program will forgive the loans of those who work with “public interest legal services” for over ten years. This includes “prosecutors, public defenders and legal advocacy on behalf of low-income communities at a nonprofit organization” Visit and for additional information regarding public service loan forgiveness.