Student Loan Debt
On October 5, the Obama Administration announced that it was taking steps to make student loan debt easier to manage by allowing recent graduates to consolidate loans and reduce interest rates. In his 2010 State of the Union address, the President proposed, and Congress subsequently enacted, an income-based repayment (IBR) plan that allows student loan borrowers to cap their monthly payments at 15 percent of their discretionary income. Beginning July 14, 2014, that cap will be reduced to 10 percent. “Pay As You Earn” The new Administration plan, called Pay As You Earn, offers more immediate relief, giving many current college…
