If college is in your child's future you should know that the biggest change to hit student loan repayment in its history became effective December 21, 2012. It changes the student loan landscape in ways that will shock you as a parent.
Some parents will love the changes. Some will be disgusted about what the government is putting in front of their children.
The changes are included in a new program called Pay As You Earn. It was created in an executive action/order by President Obama. It provides very low monthly payments (oftentimes less than the interest due each month) and promises debt forgiveness.
Pay As You Earn will get lots of attention over the next few years.
It makes this second question even more important: Are you going to encourage your child to take on student loans and get into the new Pay As You Earn program?
This post at my Freedom From Student Loans blog will help you answer that question (click here). It will also give you a sneak peek into the bizarre new beginning for student loans (and the financial decisions you will be making). It may surprise you!
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