What Happened with the 2012 Student Loan Laws?

There were a few things that occurred when it came to getting whatever you needed in regards to student loans. In 2012, there were some changes that went into effect – here’s a quick look at how that can affect a texas student stanton.

texas student stanton

Loan repayments can be no more than 15% of income above a basic living allowance.  In 2014, this number was reduced to 10%. This is a great thing, especially in today’s job market. Recent graduates are getting overlooked for jobs, and if it is easier to defer or reduce payments, it will help bolster the economy because the ages 23-35 gap isn’t going broke because of paying off loans and are able to put money into other parts of the economy.

Loans can be forgiven after 20 years and after 10 if you are in a “service” field (Service fields include social work, education, military, and others). This is made easier by the changes in number 1. Loan forgiveness is offered to people who make payments consistently for a certain period of time (in this case, 10 or 20 years). If you have lower payments, it’s much easier to do this.

Increased Pell Grants. These are federal grants, meaning you can get them whether you are in state or out of state (as opposed to state grants, which only apply if you stay in your home state). Pell grants were not a large source of aid, but adding to the pot could significantly assist those who are really in financial need go to college.

Some people opposed to the law say that this is going to make our economy worse; lower payments plus those loans being forgiven earlier means less interest is getting paid on those loans. This could possibly hurt the private loan companiesÂ… or could it?