by Hans Eisenbeis
- The Project on School Debt recently announced an option for students carrying tuition debt. Starting in July 2009, grads will be able to adjust their repayment schedule to better align with their actual income (USAToday 5.19.09).
- The program is designed so that students with Stafford loans will pay no more than 10% of their monthly income, and if they fall below 150% of the official poverty line, they’ll not have to make any payments until their income improves.
- If after 25 years the loans are not paid off, the remaining debt will be forgiven. Unfortunately, students with private loans will not be eligible.
WHAT THIS MEANS TO BUSINESS
- Hefty school loan payments have been a burden for a long time, especially for students studying in academic subjects with little hope of an immediate, post-grad payoff. Some colleges and universities have offered more forgiving, customized terms, and now a similar approach will be institutionalized for all students with federal student loans.
- American consumers are seeking a big spike in Gross National HappinessSM from government and brands alike. A kinder, gentler financial world is sorely needed, especially by Millennials who carry big bills and meager prospects.