Yesterday the White House's Middle Class Task Force, chaired by VP Joe Biden, proposed strengthening the Income-Based Repayment Program. IBR was established through the College Coast Reduction and Access Act of 2007, and went into effect last July.
The Middle Class Task Force's proposal would:
* Lower the cap on federal student loan repayments from 15% of a borrower's discretionary income to 10%.
* Shorten the time it takes to forgive student loan debt from 25 years to 20 years.
These proposed changes will be included in President Obama’s budget proposal for fiscal year 2011. President Obama will send his budge proposal to Congress on February 1st.
Check the Middle Class Task Force's official blog for more info.
In addition to these proposed changes to IBR, the US Senate is considering student aid reform legislation.
To learn more about the Middle Class Task Force watch President Obama and VP Biden's announcement on YouTube -Part 1 and Part 2.
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