Many people forego a college education because college loans are the only means of paying tuition available to them. Many parents and some would-be college students are worried about the debt that would be incurred by student loans, but there are some new rules and procedures for student loans that could put things in a brighter light.
First, private lenders that were subsidizing student loans are no longer going to be doing so, which is a practice that should save college students a lot of money. The federal government will be lending directly to students, for federal student loans, and the interest rate on these types of loans is set to go lower. One drop in interest rates will come as soon as July 2010.
Also, there are reports that caps on repayment will be available to college students and the student debt may be forgiven after a specific amount of time. Private sector workers are said to have their student loans forgiven after 20 years, and public service workers after 10 years.
These new rules for student lending are hoped to make student loan debt more manageable and repayment easier and more affordable as the cost of attending a university continues to rise.