The Cost of College Education: A Little Cheaper?

Many of us have heard about President Obama’s new plan to help graduated college students with the staggering load of college debt they tend to carry.  The income-based repayment options the government now offers-and will soon expand-will definitely make a dent in things.  It has the potential to reduce minimum payments from hundreds of dollars per month to much, much less.  But then, of course, this only applies to federal loans…not all those pesky private loans your financial aid officer talked you into.

Recently, however, I’ve become aware of a plan passed by the Congress back in 2007 that involves total loan FORGIVENESS after ten years of consistent payments.  Two catches:  1) you must work in the public sector or for a non-profit 501(c3) organization, and 2) this will only apply to federal-based loans.  But, if I’m understanding matters correctly, this can be linked with the income-based repayment plan, meaning that a person could theoretically have their loan payments reduced substantially and only make 120 of these diminished payments before they go away entirely.  I’ve heard of some having success with this program, and would encourage anyone saddled with more than they can pay to look into it.

Seems too good to be true?  I know.  It does.  But you don’t have to take my word for it:  check out the facts from the federal government itself, and Google away.  Tomorrow: some thoughts on where higher education is going…

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2 comments on “The Cost of College Education: A Little Cheaper?

  1. Hence, since churches operate under the 501 (c3) laws, As long as I am a pastor and faithfully pay my loans, after 10 years I can have them reduces..yay..lol

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