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The New Math of Financial Aid

• tokenadult 17y ago
  "One of the more touted elements of the 2007 law went into effect in July 2009. Known as the Income-Based Repayment program, it caps the monthly payments on federal loans at 15 percent of a graduate's discretionary income. What does that mean for the bottom line? Say you're a recent graduate with $30,000 in federal loans and a starting salary of $25,000 a year. Previously, your monthly payments would have totaled about $345; now they'll be around $110, according to The Institute for College Access and Success (TICAS), a nonprofit focused on affordability issues." I have not seen a lot of other reporting on this law change, so that was interesting to know. There is still the issue that total student debt shouldn't be very high in a dicey economy. By current observation, some college degrees in some subjects from some colleges don't provide a positive return on investment.