Making Sense of the Recent Confusion About Student Loans
Many nannies owe student loans. President Obama announced that he will issue an Executive Order making certain changes in the program.
I found the reporting of the nature of the program to be sketchy and misleading. For the convenience of those who borrowed to go to college and still owe payments, I offer a brief summary of the important changes.
An important component is that the Order accelerates the payment of those who choose to "pay as you earn," will have their interest lowered from 15% to 10% starting in January 2012 instead of January 2014.
This program also allows the borrower to consolidate loans at the lower rate. Additionally, as long as these criteria are followed, loans will be forgiven after 20 years instead of 25 years.
We urge those who owe college loans to search web sites carefully for the most current programs. Your diligence should include contacting your lender(s) and the financial aid department of the school you attended.