Struggling with Student Loans?
If your student loan balances make you feel like a member of the Class of Forever, help may be here. It’s not exactly a bailout, but a number of federal student loan rule changes that went into effect this week are aimed at lightening the repayment load for overburdened borrowers. Lower Interest Rates. As of this week, people with older student loans will catch a bit of a break. For federal loans issued before July 1, 2006, the interest rate will be reduced to 2.48 percent, down from the current 4.21 percent rate. And the interest rate on new subsidized federal Stafford loans will fall to 5.6 percent (down from 6 percent), as the Chicago Sun-Times reports. Relaxed Loan Forgiveness for Public Service Jobs. If your job relates to public service — if you work for the government, teach in public schools, or are employed by a qualifying non-profit, for example — you may be able to have your entire student loan obligation forgiven (erased) after 10 years. This is down from the previous 25-
