New federal plan could help make student loan payments more manageable

Plan cuts student loan payments for millions of loan holders to $0

Plan cuts student loan payments for millions of loan holders to $0

ON HOW THAT WILL WORK. SO OBVIOUSLY, THIS IS QUITE DIFFERENT THAN WHAT WE HAD PREVIOUSLY. A NEW INCOME DRIVEN PLAN AIMS TO HELP PEOPLE MAKE STUDENT LOAN PAYMENTS. WITH THE PAUSE ON FEDERAL LOANS SET TO EXPIRE IN OCTOBER, THE WHITE HOUSE LAUNCHED A NEW BETA WEBSITE FOR PEOPLE TO SIGN UP AND FIGURE OUT WHICH PLAN MIGHT WORK FOR THEM. SO FOR I THINK FOR THE AVERAGE PERSON, YOU KNOW, IF YOU’RE UNDER A CERTAIN SORT OF INCOME THRESHOLDS, THIS IS GOING TO SUBSTANTIALLY DECREASE THE KINDS OF PAYMENTS THAT YOU WILL HAVE TO MAKE. THE WEBSITE OUTLINES THE FOUR PLANS AND ALLOWS YOU TO CREATE AN ACCOUNT AND MANAGE YOUR PAYMENTS BASED ON YOUR INCOME FOR THOSE MEETING CERTAIN INCOME THRESHOLDS, MONTHLY PAYMENTS COULD BE AS LOW AS ZERO. THE DEPARTMENT OF EDUCATION SAYS THOSE APPLICATIONS WILL BE PROCESSED BEFORE THE OCTOBER REPAYMENT DEADLINE. WE’VE GOT PEOPLE WHO ARE REPAYING VERY LARGE STUDENT LOAN PAYMENTS THAT ARE NOW IN THEIR 40S AND 50S. EVEN IAN ANSON, AN ASSOCIATE PROFESSOR OF POLITICAL SCIENCE WITH UMBC, SAYS THIS NEW PLAN ADDRESSES INTEREST RATES, WHICH HE SAYS IS A BIG PART OF WHY PEOPLE ARE STILL PAYING OFF THESE LOANS DECADES AFTER THEY FINISHED SCHOOL. AND IT TAKES THE AVERAGE STUDENT 20 YEARS TO PAY OFF THEIR STUDENT DEBT. JENNIFER FINETTI WITH SCHOLARSHIP OWL, SAYS STUDENTS IN COLLEGE NOW ARE TRYING TO FIND WAYS TO PAY FOR THEIR EDUCATION WITHOUT TAKING OUT LOANS. BUT IT’S NOT EASY AND THIS IS REALLY A CONCERN RIGHT THERE ARE MANY STUDENTS THAT ALREADY HAD LOANS PLANNED AND THEY’RE PLANNING ON TAKING OUT MORE LOANS. VERNETTI SAYS APPLYING FOR SCHOLARSHIPS CAN MAKE A DIFFERENCE, BUT YOU NEED TO BE PERSISTENT BECAUSE IT CAN TAKE SOME TIME, RIGHT? IT TAKES TIME AND PERSISTENCE, BUT IT CAN BE REALLY WORTH IT. APPLY FOR SCHOLARSHIPS YEAR ROUND RATHER THAN JUST FOR A COUPLE OF WEEKS AND JUST KEEP GOING. WELL, WE DO HAVE A LINK TO THE NEW STUDENT LOAN BETA WEBSITE AND THE

New federal plan could help make student loan payments more manageable

Plan cuts student loan payments for millions of loan holders to $0

School payments are already top of mind for current students looking to pay their fall tuition bill, as well as people who are bracing to restart student loan repayments that have been paused since 2020.Top Stories· Myrtle Beach banner plane crashes into ocean· 'Much loved:' physician killed in shooting at Freedom Park in Eden, UNC Health says· SUV driver hits 6 people in "intentional assault" at a Walmart parking lot, police sayGet the latest news stories of interest by clicking hereThe White House has a new plan to help make those payments more manageable, and applications are underway.The new income-driven plan aims to help people make student loan payments, as the pause on federal loans is set to expire in October. The White House launched a new beta website for people to sign up and figure out which plan might work for them.| LINK: Income-Driven Repayment (IDR) Plan Request"Obviously, this is quite different than what we had previously," said Ian Anson, associate professor of political science at the University of Maryland-Baltimore County. "For the average person, if you're under some sort of income threshold, this is going to substantially decrease the kinds of payments you will have to make.Watch: NOWCAST streaming newscastsThe website outlines four plans and allows an applicant to create an account and manage payments based on income. For those who meet certain income thresholds, monthly payments could be as low as $0.The U.S. Department of Education said applications will be processed before the October repayment deadline."We've got people who are repaying very large student loan payments who are now in their 40s and 50s even," Anson said.Anson told 11 News that the new plan addresses interest rates, which he said is a big part of why people are still paying off loans decades after they finish school.Rossen Reports video below: This tool will help you manage student loan debtJennifer Finetti, with Scholarship Owl, told 11 News that students currently in college are trying to find ways to pay for their education without taking out loans -- but it's not easy."It takes the average student 20 years to pay off their student debt," she said. "There are many students who have loans, and they are planning on taking out more loans."Finetti said applying for scholarships can make a difference, but applicants need to be persistent."It can take some time. It takes time and persistence, but it can be really worth it. Apply for scholarships year-round, rather than just for a couple weeks, and just keep going," Finetti said.Rossen Reports video below: Steps to prepare for student loan payments to start back upNAVIGATE: Home | Weather | Watch NOWCAST TV | Local News | National | News We Love |Trending Stories

· 'Much loved:' physician killed in shooting at Freedom Park in Eden, UNC Health says

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Get the latest news stories of interest by clicking here

The White House has a new plan to help make those payments more manageable, and applications are underway.

The new income-driven plan aims to help people make student loan payments, as the pause on federal loans is set to expire in October. The White House launched a new beta website for people to sign up and figure out which plan might work for them.

| LINK: Income-Driven Repayment (IDR) Plan Request

"Obviously, this is quite different than what we had previously," said Ian Anson, associate professor of political science at the University of Maryland-Baltimore County. "For the average person, if you're under some sort of income threshold, this is going to substantially decrease the kinds of payments you will have to make.

Watch: NOWCAST streaming newscasts

The website outlines four plans and allows an applicant to create an account and manage payments based on income. For those who meet certain income thresholds, monthly payments could be as low as $0.

The U.S. Department of Education said applications will be processed before the October repayment deadline.

"We've got people who are repaying very large student loan payments who are now in their 40s and 50s even," Anson said.

Anson told 11 News that the new plan addresses interest rates, which he said is a big part of why people are still paying off loans decades after they finish school.

Rossen Reports video below: This tool will help you manage student loan debt

Jennifer Finetti, with Scholarship Owl, told 11 News that students currently in college are trying to find ways to pay for their education without taking out loans -- but it's not easy.

"It takes the average student 20 years to pay off their student debt," she said. "There are many students who have loans, and they are planning on taking out more loans."

Finetti said applying for scholarships can make a difference, but applicants need to be persistent.

"It can take some time. It takes time and persistence, but it can be really worth it. Apply for scholarships year-round, rather than just for a couple weeks, and just keep going," Finetti said.

Rossen Reports video below: Steps to prepare for student loan payments to start back up