Dec 6 2016
These days, being an average student has become more of an expensive pastime. The average 2016 college graduate who borrowed student loans left their school with more than $38,000 in debt. This picture can be even grimmer for certain other majors as the average student loan debt for law school grads was around $140,616 and medical students were even worse off with $162,765 in loans. It is indeed fortunate enough that there were new programs which were constantly being introduced every year in an effort to offer relief to the student borrowers.
So, if you’re someone who is about to seek student loan repayment help in 2016, you will most probably encounter the following developments which may offer you just exactly whatever you’re searching for. Check out what you may expect from student loan lenders and how you can benefit by paying off debt.
The introduction of REPAYE
This was introduced in 2016 as an ally to other repayment programs which were driven by income and this is known as the REPAYE or the Revised Pay As You Earn program which opens repayment assistance up to 5 million borrowers every year. Borrowers will easily be able to cap their monthly student loan instalment at 10% of their discretionary income. As a complementary bonus, those on the REPAYE program will have remaining balances which are forgiven after 20 years of timely payments for the students who are undergraduate and 25 years for students who are graduate. The only catch here is that you will be liable to pay taxes on the amount which is forgiven.
New refinancing options sponsored by state
As all sorts of federal benefits have been exhausted and requirements have been tightened for the soaring graduates saddled with student loan debt, more and more states started offering brand new student loan refinancing options for the borrowers. To cite as an example, Minnesota is a state which launched its personal program in 2016. Their Self Refi Program lets Minnesota residents with student loan debt to refinance at rates which are as low as 3% if they are able to meet some requirements. The only benefit of this program is that they may deter the indebted students from relying on private loan programs which may be predatory or even pricier.
Workplace assistance of student loan repayment
As per a study from the Society of Human Resources Management, around 3% of US employers have started offering student loan assistance as a part of their employee benefits. As more employers realize the need for this kind of benefit, the number will gradually grow as they will then start rolling benefits into already existing packages which lure young students. In fact, as per a survey done by Student Loan Hero, more than half of the respondents valued student loan repayment over other employee benefits like 401(k) match.
Get On Your Feet Loan Forgiveness program
This has been introduced in 2016 to a horde of generous and grateful students. The New York Get On Your Feet program is yet another example of a student loan repayment benefit which is one of a kind. This is offered at the state level and it is limited because it is only offered to students in New York. The program provides up to 24 months of federal student debt relief who abide by the eligibility requirements.
Therefore, if you’re someone who is struggling with student loan debt payments, you should inform yourself about the above mentioned student loan repayment assistance programs. It is only when you know them that you can use them.