New Payment Solution for Student Loan Debt

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DECATUR- Paying off student loans can seem impossible and for some it is, the national debt rate is up to $1.36 trillion and is climbing. With a new repayment plan opening up more opportunities Americans could start to save more and pay off sooner.

According to the Federal Reserve Bank more than a large amount of loan borrowers are in default and that number could rise even more. But the Pay as You Earn repayment plan originally only available for borrowers who qualified after 2007 could open up to all borrowers by October.

The plan would give the borrower the opportunity to just pay 10% a month based on income along with an option to get loan forgiveness if the loan is not paid off in 20 years.

Director of Financial Aid at Richland Community College Carmin Ross said, "Once upon a time it was 15% of your income over the course of 25 years. It is now 10% of your income and they'll forgive whatever the remaining balance happens to be after 20 years so its a lot more affordable its a lot more doable."

The new ruling would be enacted by the Department of Education by this upcoming October. 

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