Posts Tagged ‘student loan overhaul’

Obama Signs Student Loan Overhaul Into Law

President Obama signed student loan overhaul legislation into law today.  The new law will remove private banks from their long held role of middlemen between students and government guaranteed funds.

Instead of obtaining loans from private lenders such as Sallie Mae, students would instead get their loans directly from the Federal government. The administration says that this new legislation will save taxpayers $68 billion over the next decade.

In addition to providing direct student loans from the Federal government, under the new law,  student loan payments would be capped at 10%  of the borrower’s income and provide additional funds to community colleges.

This new legislation is a welcome change to students concerned about how they will repay their loans and college graduates struggling to do so in the current economy.

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