The Education Department has just announced some changes that may alleviate some of the financial challenges that student loan holders are currently facing.
The new regulations aim to reduce the number of students who are currently defaulting on their loans. According to The New York Times, "More than 600,000 federal student loan borrowers who began repaying their debts in 2010 defaulted on their loans by 2012."
While there were some rehabilitation regulations already in effect, many of those who had defaulted were still not able to make payments. Private debt collectors were not lowering the minimum payments to a fair rate in order to protect their own profits.
The new regulations will allow those in danger of defaulting on payments to receive a new plan based only on income, and will also make sure that the debt collectors are not demanding a minimum amount.
While this may offer some relief to those paying back student loans, please note that these regulations apply to loans made by the federal government only.