Student loan debt continues to increase
Many in the US weren't happy at all when the federal government had to bail out the bank and automotive industry when things went south. Homeowners have been given many ways during the economic downturn to be able to keep their homes.
One group of people that is now starting to get some relief is students that are laboring to pay back student loans. More and more students are leaving college with significant debt accumulated to pay for their education. About 71% of students that graduated from college in 2012 has loans averaging $29,400 according to a report from the project on Student Debt reports Time.
The government is trying to help borrowers pay back their land with programs that cap monthly payments at 10% of their discretionary income. That income is defined as 150% above the poverty level, which is $15730 a year for a two-person family.
Under that plan, a person making $35,000 per year with that $29,400 student loan would pay about $100 per month. Some of the programs see people having repayment periods capped at ten years after which the loans were considered paid. However, these programs have proven so popular that they might cause problems down the road. Obama is pushing to limit a lifetime forgives cap on loans at $57,500. Some reports indicate that colleges are upping tuition to convert the costs of these programs.