Five facts about the new federal student loan rules

The new regulations aim to make it easier to pay back student loans.
The new regulations aim to make it easier to pay back student loans.

The U.S. Department of Education released new regulations for federal student loans, with the aim of making it easier for graduates to pay off their debts. The New York Times reports that more than 600,000 federal student loan borrowers who began repaying their debts in 2010 defaulted on their loans last year. Get all the information on the new regulations below and find out whether you can benefit from them.

1. What it is: Under the new federal law, people who default on their federal student loans can rehabilitate them by making nine timely payments based on the Income-Based Repayment Plan’s guidelines. The guidelines cap repayment at 15 percent of the borrower’s income. After the nine payments have been made, the borrower’s slate is wiped clean, erasing the default status. This way, universities can’t fault the borrower and deny them the opportunity to take out more federal education loans.

2. It will be easier to be placed in forbearance: The new regulations also state that instead of having to write a request for forbearance, borrowers can now request one verbally in person or over the phone, which anyone more than 270 days late making a payment can request. Oral forbearances have a 120-day limit, however, and a borrower cannot make them back-to-back.

3. The government may be emailing you: The Department of Education will email the roughly 3.5 million federal student loan borrowers from now until the end of the year to notify them of the new regulations. The email will outline the new regulations as well as explain the Income-Based Repayment Plan.

4. How if affects private student loans: These new regulations do not apply to private student loans; only federal government loans will have to follow the new regulations.

5. When it takes effect: The new regulations will be implemented in July 2014.


News
Entertainment
Sports
Lifestyle
National

New statue of Penn State's Paterno set for…

By David DeKokHARRISBURG, Pennsylvania (Reuters) - Fundraising for a new statue depicting Joe Paterno "as the man he was and not Joe the football coach"…

National

On newly released tape, 'Squeaky' Fromme says was…

Manson Family member Squeaky Fromme told a mental health examiner in newly released interview the "X" she carved in her forehead was meant to separate her from "the system."

Local

New York-based Century 21 store coming to The…

The former Strawbridge & Clothier building will once again host a department store. City officials on Thursday announced New York-based Century 21 Department Stores will…

National

Electric Zoo tickets on sale Tuesday as festival…

Electric Zoo tickets go on sale Tuesday. The festival announced plans to amp up security after two attendees died last year from apparent drug overdoses.

Music

Championship of Collegiate a Cappella: Students who are…

Tickets to this Saturday’s International Championship of Collegiate a Cappella reportedly sold out within 11 hours of going on sale.

Music

M.I.A. talks 'Matangi,' divinity, spontaneity and holograms

"There’s pressure for me to become a theatrical production like 'Glee,' or something" says M.I.A., "It’s like, 'the pressure’s on, bitches.'"

Movies

Tribeca: 'Goodbye to All That' star Paul Schneider…

Paul Schneider talks about his new film "Goodbye to All That," not acting too much and how he'd rather indulge in simple pleasures than play the scene.

The Word

Taylor Swift battles paparazzi daily at Tribeca penthouse

We're entranced by these photos of poor Taylor Swift leaving her Tribeca apartment.

NBA

Jason Collins named to Time's 100 Most Influential…

Jason Collins was named to the list after coming out as the first openly gay player to appear in an NBA game.

MLB

The return of Cole Hamels brings optimism

Cole Hamels’ quality start Wednesday was a nice change of pace from his recent season debuts.

MLB

Tony Gwynn Jr. a nice surprise for Phillies

Tony Gwynn Jr. has been a plus in every way for the Phillies.

NFL

2014 NFL Mock Draft: Updated, new April 24…

2014 NFL Mock Draft: Updated, new April 24 version

Food

Hai Street Kitchen opening in Rittenhouse May 22

Japanese cuisine will get a Chipotle-style twist at Hai Street Kitchen & Co., a new casual, quick-food restaurant opening near Rittenhouse Square on May 22.…

Parenting

New study: Inside the wage gap between boys…

According to a new study, there's a wage gap between boys and girls, with boys earning more allowance for less chores.

Tech

From Apple TV to Fire TV, big changes…

Apple is set to launch a new generation of it's Apple TV, which grossed over $1 billion in 2013. But competition from Amazon and Google looms.

Style

Katy Perry releases a new Claire’s collection

Katy Perry expands her empire by releasing an accessories collection at Claire's.