Heather Jarvis, Student Loan Expert Logo 

 

Find us on FacebookFollow us on TwitterVisit our blogView our profile on LinkedIn 

December 2012 

     

 

The Student Loan Report 

Heather Jarvis
Heather has provided training and education for university professionals since 2005. 
 
 

 Quick Links

About Heather Jarvis

 

Where's Heather?

 

Essential Tools for Borrowers 

Join Our Mailing List

Department of Education announces new "Pay As You Earn" repayment plan, available "by the end of 2012" Clock image  

  

Final regulations implementing the President's new "Pay As You Earn" (PAYE) repayment plan provide for reduced payments for some federal student loan borrowers.
 

Among PAYE's key provisions:

  • Must have no outstanding federal student loan balance as of Oct. 1, 2007
  • Must have received a disbursement of a federal student loan on/after Oct. 1, 2011
  • Payments limited to 10% of "discretionary income"
  • Forgiveness after 20 years
  • Married borrowers in community property states may use Alternative Documentation of Income
  • 10% cap on interest capitalization  

Learn what you need to know about Pay As You Earn in Heather's upcoming online course: Student Loan Updates for University Professionals.  Register

Fiscal Cliff: What would happen to student loans?

  

We wonder what Congress thinks about the closing scene of 1991's box office hit, Thelma & Louise, when the title characters reach the end of the road after evading police for the murder of a potential rapist. Their choices are to surrender or ride off the cliff, hand-in-hand, to meet their maker together.
 
Jumping off the "fiscal cliff" would result in mandatory spending cuts to education funding (called sequestration) beginning Jan. 1, 2013:
  • 8.2 percent cuts to aid programs including federal work-study
  • Higher federal student loan origination fees
  • Pell Grants exempt from cuts this year; however shortfall expected in October 2013
President Obama Wins a Second Term; What Does That Mean for Student Loan Policy?
white house logo

During his first term, President Obama expanded federal student aid programs and increased regulation of higher education
.
 
His administration increased funding for the Pell Grant, expanded Income-Based Repayment and ended the Federal Family Education Loan (FFEL) program in an effort to "make college more accessible, affordable, and attainable for all American families."

The President's stated goals for a second term include:
  • Reducing tuition growth rates by half over the next decade
  • Tying some federal aid programs to colleges and universities' ability to demonstrate reductions in tuition growth rates
Heather will elaborate on her expectations for legislative initiatives during a series of updates for university professionals
Our very best to you and yours for a happy and safe holiday season!

ARE YOU READY TO GET A GRIP ON YOUR STUDENT LOANS?

Heather's serious legal expertise and plain talk unravels confusing student loan repayment information - once and for all.