Who Really Benefits From The Student Loan Debt Plan?

5:29 PM, Oct 27, 2011   |    comments
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Undated -- We did some fact checking Thursday to see who really will benefit from the president's plan to ease student debt.

The plan lowers student loan payments and forgives loan debt after 20 years instead of 25 years.

It also makes it easier for you to consolidate at a lower interest rate.

It sounds like a huge help for millions of struggling Americans. 

However, we found the plan will primarily benefit current students and recent graduates, and all of that information is laid out on the White House Website.

The president's plan will only impact federal student loans, not private loans from banks.

If you do fit in those categories, you can cap your student loan payments at 10% of your discretionary income. That's the money you have left over after you pay you bills. Currently, the cap is 15%. That change will take place in 2014.

Another part of the plan will allow recent graduates to consolidate student loans at lower interest rates.

And when we do the math here: the president's plan will help an estimated 8.6 million Americans. That means it will benefit less than a quarter of the 36 million people with student loans.

WFMY News 2

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