What to expect as a graduate with student loans in 2020
Updated on January 23, 2020
With the rising costs of tuition fees in colleges, student loans have seen several changes in the last few years. For example, student loan scams have increased, billionaires have paid off some student debt while student loan forgiveness programs have become unsteady.
Unfortunately, even with legislative proposals and various affordable repayment options available, student loan debt is a significant crisis in the United States. Here are some things to expect as a graduate with student loans to pay off in 2020.
The government is making changes as to how students can access their online student loan accounts in 2020. This overhaul includes a new online repayment service that provides graduates with up-to-date balance information.
The main aim of these changes is to ensure students can manage their federal student loans and understand their balance. Additionally, the government is urging students to switch to direct debit from salary deduction to prevent overpayments.
Using this new service provides many graduates with easy access to information and a smooth end when it comes to loan repayments.
Public service loan forgiveness
The current public service loan forgiveness program is said to be broken, and President Donald Trump proposed to eliminate it and incorporate a single income-driven repayment plan. This plan will forgive federal student loans after fifteen years and cap monthly loan payments at 12.5% of discretionary income.
Joe Biden will develop a new program that provides $10000 of student loan relief for every year of community or national service for up to 5 years. Every graduate that works in a non-profit or government school will be automatically enrolled for this student loan forgiveness program.
Student loan refinancing
Refinancing student loans allows graduates to combine all the federal loans into one for easier payment and debt management. This year, graduates can refinance their existing student loans with today’s interest rates.
However, you can refinance your federal and private student loans with a private lender since the federal government doesn’t provide this service.
How we can help
StudentLoanify is happy to help all graduates with their student loan repayment. Contact us today for income-driven repayment plans and student loan forgiveness.