The New York Times reported today that the federal government has been taking measures to decrease pressure from student loans. Among the provisions of the plan:
- Reduction in payments on federal student loans based on the borrower’s income based on calculations explained here.
- A 1.2 percent drop in interest rates on the government’s largest student loan program, the Stafford loan, which will go from 6.8 to 5.6 on loans made between Wednesday and July 1, 2010. The reduction is part of a long-term plan that will lower interest rates to 3.4 by mid-2011.
- The plans are meant to work in conjunction with a 2007 plan that will forgive student loans for people in public service (that is, in professions defined here) starting in 2017.
The Washington Post and the Associated Press also have stories.
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