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I don't understand government
Elin
Registered User regular
Registered User regular
So I know there was a reconciliation bill. I believe it is all passed. I know that bill contained student loan reform. I read some information on it, and I THINK it said that all student loans will go through Direct Loans now. Is that right?
Like, last year for my husbands school when we accepted his aid we had to pick a bank to go through instead of just Direct Loans that my CC used. Will this be changed this fall? Can we go through Direct Loans? I also think that I saw that for the income based repayment it will be 10% of your salary and after 20 years if it's not payed they forgive the remaining balance?
Please educate me. I've tried looking through the D&D thread but it's focused on the health care issue and I'd really like to know about loans.
Like, last year for my husbands school when we accepted his aid we had to pick a bank to go through instead of just Direct Loans that my CC used. Will this be changed this fall? Can we go through Direct Loans? I also think that I saw that for the income based repayment it will be 10% of your salary and after 20 years if it's not payed they forgive the remaining balance?
Please educate me. I've tried looking through the D&D thread but it's focused on the health care issue and I'd really like to know about loans.
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What I think will happen is you will apply for financial aid as usual this spring, and get your award. Then, if you're school uses private lenders, you'll still apply to one of them for your loans. Then, after your school makes the transition, your school will send you a new promissory note to sign for the direct loan, and your private loans will be converted over. It should be pretty seamless for you because none of the interest rates or deferments will change.
I could be wrong on some of the details, but I'm pretty sure that's basically how things will go down.
http://biggovernment.com/publius/2010/03/18/house-reconciliation-bill-full-text/
And found some stuff about student loans around page 125.
Honestly, there is a lot of fine print there...and you probably need the text of the original bill in front of you while reading it.
You could print the relevant sections of both and try to piece it together but I'm sure some loan agency will spell it out for you in a week or so when the dust settles.