With student loan debt growing, and more graduates concerned about how they will pay for their education, many are looking to the 2016 presidential candidates for answers. In response, Hillary Clinton has released her plan for handling this debt. Here are her plans for student loan reform:
1. A three-month payment holiday. During this time, no federal student loan payments will be made. Instead, borrowers can use the time, working with the Department of Education, to consolidate, refinance, or qualify for different repayment plans.
2. The ability to refinance federal student loans to a lower interest rate. Clinton believes that around 25 million borrowers could lower their monthly payments if their loans were financed at today’s rates.
3. Move more borrowers to income-based repayment plans. Clinton stated that borrowers should not have to pay more than 10 percent of their monthly income to student loans, nor should borrowers have student loan debt for more than 20 years.
4. Employers should be rewarded for assisting employees with their loans. Clinton wants to introduce a payroll deduction that encourages employers to offer student loan repayment benefits.
5. To encourage small business owners, Clinton wants to install a program providing entrepreneurs with three years of loan deferments so they can put more into their new business.
6. Teachers and those taking part in the AmeriCorp programs should be eligible for student loan forgiveness.Find out quickly at what rate you can refinance your student loan.
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