Friday, September 29, 2006

The Five-Point Plan for Fair Loan Payments

The Department of Education has put out a call to the public asking for rule change ideas to help ease the growing student debt problem. The Project on Student Debt has come up with the Five-Point Plan for Fair Loan Payments. Go check them out. Here is a summary of their proposal:

1) Limit student loan payments to a reasonable percentage of income.

2) Recognize borrowers with children have less income available for student loan payments.

3) Protect borrowers from high interest charges when they face hardship situations.

4) Cancel remaining debts when borrowers have made regular payments for 20 years.

5) Simplify the application process for hardship deferrals and other repayment options.

If you believe this is the proper way to tackle to problem, let your voice be heard by following this link and signing the petition letter to the Department of Education.