(Newswire.net — June 3, 2016) Boca Raton, FL — Senators Marco Rubio (R-FL) and Mark R. Warner (D-VA) have unveiled The Dynamic Student Loan Repayment Act, a bipartisan act intended to help graduates repay federal student loans within a manageable schedule while reducing the burden of student debt.
The average debt of graduates entering the workforce is $30,000. It is predicted this number will continue to rise as post-secondary education costs soar, making repayment almost impossible. Many Americans are forced to take on 2 or 3 jobs, often outside their field of study, to bring in enough income to cover living expenses, bills and debt. The stress of federal student loan repayment is in some cases overwhelming, causing graduates to default on loans or put off milestones such as getting married or purchasing a home.
The Dynamic Student Loan Repayment Act allows borrowers to pay down their college debt based upon their income, making repayment more affordable and less stressful. While existing programs are notoriously complicated and difficult to access, this newly proposed plan is intended to be simpler and more user-friendly.
“This issue is personal for both of us,” Rubio and Warner said. “Neither of us could have attended college were it not for federal student loans. We both remember months when our paychecks were low and we weren’t sure if we could make our payments. Each of us has heard from constituents affected by crippling student debt. Our Dynamic Student Loan Repayment Act will provide an additional tool to help borrowers meet their obligations, and this must be part of a broader conversation about how to make higher education more affordable.”
The Dynamic Student Loan Repayment Act will have a cap of 10% of a borrower’s income (over and above $10,000) which will be expected to go towards loan repayment. For example, an individual grossing $30,000 per year, would pay $200 per month (or $2000/year) towards repayment of their student loan. If there is any debt remaining after 20 years of repayment on a loan totaling $57,500 or less, the remainder of the debt would be forgiven. For loans over $57,500, loans are forgiven after 30 years of repayment.
U.S. federal student loan debt is over $1.2 trillion dollars and it is projected The Dynamic Student Loan Repayment Act will see less borrowers defaulting on their loans. This is great news, considering non-payment is usually very costly for the government and financially damaging for the borrower.
For more information on The Dynamic Student Loan Repayment Act, visit https://www.congress.gov.
About Student Loan Debt Relief:
If you have trouble meeting your monthly student loan payments, have exhausted your deferment and forbearance options, and/or want to avoid default, a federal program may be available to help you. For more information, call us today at (561) 200-3389.
About Student Loan Debt Relief
If you have trouble meeting your monthly student loan payments, have exhausted your deferment and forbearance options, and/or want to avoid default, a Federal program may be available to help you.
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