On Monday, President Obama signed an executive order allowing millions of student loan borrowers to cap their monthly payments at 10 percent of their monthly income. “The cost of college and burden of student loan debt are suffocating middle-class families and putting students at an economic disadvantage before they enter the workforce,” Obama said.
Many borrowers already have the option to limit payments to 10% of their income. Obama’s order on Monday extended that option to about 5 million others who were not covered by the previous changes, including those who took out loans before October 2007.These new regulations are expected to be implemented in December 2015 at the earliest.
Student loan debt has reached $1.2 trillion. The average debt per borrower from the class of 2012 ranged from $17,994 in New Mexico to $33,649 in Delaware. President Obama has also endorsed legislation sponsored by Senator Elizabeth Warren (D-Mass.) that would allow students to refinance both public and private loans. This would be paid for by closing a tax loophole currently available to the wealthy. In another effort to help ease the burden for struggling borrowers, Obama ordered the Education Department to renegotiate its contract with student loan providers and give financial incentives to borrowers who make their payments on time.
For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.