"For the first time in years, there is good news for college students who borrow to pay for their education," New York Times reports. "Starting Wednesday, the federal Education Department will begin offering a repayment plan that lets graduates reduce their loan payments, based on their income. Also on Wednesday, the interest rate on new federal Stafford loans, the most widely used federally guaranteed student loan, will drop to 5.6 percent, from 6.8 percent. By 2012, the rate will fall to 3.4 percent, under a schedule mandated by Congress."

You can read the complete June 29, 2009 New York Times article on-line.

Additional Media Coverage

New Loan-Repayment Program Allows Student Borrowers to Pay as They Earn The Chronicle of Higher Education

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