But now there is great news for students who are taking or have taken loans for education. In the coming days, the Federal education department will announce that the graduates can start paying their loans with the amount of money they earn during the course of the year, while still at the university.
A spokesperson from a university stated that it is a great piece for students who were always under the pressure of paying back the huge loan amount once they graduate. The news has more to it. The federal government recently announced that there will be a drop in the rate of interest on these loans. The interest rates will drop to 5.6 percent from 6.8 percent. It also further stated that the interest rate on the loan is likely to fall to 3.4 percent in the year 2012.
This is a welcome change as students across the nation face problems securing jobs in the economic situation like this. Also families are having difficulties to pay loans for college. Plus with the credit crunch, it is getting increasing difficult to secure admission loans from banks and other financial institutions. Also the private institutions charge a very high rate of interest and students have to turn to them for loans but now even that is getting difficult. It is surprising that such announcements are being made even though the economy is in shambles. But relative measures are being taken to solve other issues as well.
The solution offered by the federal government is known as the income-based-repayment. This will help the students to work harder and ease their financial tensions. Plus the government has come up with a website which will help to calculate the amount of money a student can pay monthly for their loans. If the students are able to make the payments under this plan, the balance of their loans is exempted after 10 years. But these loans have to be shifted to the federal direct loan program and won’t be applicable to loans from banks or other companies.
So, well these days everything plan comes with a ‘conditions-applied’ mark and so does this one. But at least this plan offers a breather to students. It will help many students and their families. Also the students who had dropped the idea of studying can now re think their plans and take up courses.
Hence, one can say things are looking up for students in the times of economic crisis too. All this is only possible due to the government’s good will and plans made for the benefit of their own people.