Department of Education proposes new student loan safety net
TERRE HAUTE, Ind. (WTHI) – The Department of Education has proposed a student loan safety net alongside the recent loan forgiveness plan. The safety net offers a new route to pay student loans with far more generous terms.
Paying off student loans can be stressful more many.
Tiffany Puller, a local student loan borrower, says that the new safety net plan can be a way to reduce some of the stress that those student loans can bring.
“It just kind of adds another bill to your life and life is already full of those,” she said. “So I feel like that that, you know, that will help.”
Under the new plan, as long as borrowers make their monthly payments, any unpaid interest would not be charged. The change is meant to prevent borrowers from having any unpaid interest added to their loan balance.
Miguel Cardona, the secretary for the Department of Education, released a statement last week regarding the new plan. In it he states, “Student debt has become a dream killer.”
He further explained that he promises to fix what he calls a broken system.
As for Puller and many others in her situation, the possibility of not having to pay interest fees is something that can only been seen as a positive.
“Too often you are paying student loans and you are basically just paying the interest.”
The process of putting this plan in place has begun and the Department of Education is doing what they can to push the process forward.
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