When your school uses high-pressure tactics to recruit you, gives you a sub-standard education, goes bankrupt, closes, and is under charges of fraud, the federal government will forgive your student loans. That’s what it takes.
Karen Weise at Businessweek breaks down a proposal from a group of “student-aid advocacy and research organizations” whose aims are to simplify student loan repayment. The plan includes “auto-IBR,” or automatically enrolling all federal student loan borrowers in a repayment plan based on income, and then collecting payments through an employer withholding system. Whoa now.
Two states Oregon and Tennessee consider two new ways to fund college tuition: Tennessee is considering the “Tennessee Promise,” which proposes free tuition for two years of community college or technical school and would be funded through sales of lottery tickets. Oregon is considering “The Pay It Forward” program, which I’ve previously discussed here, in which students would pay no tuition upfront—rather they’d pay a small percentage of their income for a set number of years after graduating from college.
Inside Higher Ed has an article about why so many governement student loan borrowers who could benefit from the income-based repayment (IBR) program don’t apply for it—the two main reasons being that many people don’t know that the program exists, or if they do, they find the process of applying for the program too complex.
“To my tormentor, demon of my nightmares, cloud over my sunny days; to Sallie Mae.”
Making great decisions with my student loans.
One way to get your student loan mess figured out.