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New student loan rules are affecting more than 500,000 Connecticut residents with student debt. The changes from the federal government reduce repayment options, raise monthly payments for many, and make it more difficult for families to finance higher education.
Hera are the some of the biggest changes:
- SAVE Plan ends: Borrowers have 90 days to choose a new repayment plan or will be automatically moved to the standard repayment plan, which could mean a sharply higher monthly bill.
- Fewer repayment options: New borrowers now have just two repayment plans
- Parent Plus loans: Parents are now limited to borrowing $20,000 per student each academic year instead of the full cost of attendance.
- Grad PLUS program eliminated: Graduate students can no longer borrow up to the full cost of attendance through Grad PLUS.
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