September marks the time of year when students pack up their book bags and return to the classroom… and when tuition payments are due.

The costs of attending college have risen significantly over the years and a major source of funding is provided in the form of student loans.

The nation’s student loan program has been in place for decades. A major change to the program was implemented in the “Health Care and Education Reconciliation Act” that President Obama signed into law in March 2010.

A sweeping overhaul of the nation’s student loan program was included in the Act, which has gone largely unnoticed.  Beginning on July 1, 2010 the government started originating student loans under the new system.  The loans look the same, but the origination and servicing of the loans is now run by the government.  Loan repayment terms will be improved beginning with loans originated after July 1, 2014. Loan payments will be capped at 10 percent of a student’s discretionary income. Debt remaining after 20 years will be forgiven.

The article below may be helpful in providing a general outline and answering questions about the Health Care and Education Reconciliation Act.

http://articles.cnn.com/2010-03-30/politics/student.aid.faqs_1_student-loans-pell-grant-program-white-house?_s=PM:POLITICS

Saving and paying for College is an important aspect of an individual and family’s financial plan and we are here to help.

Please contact us to discuss your investment management, financial planning and tax planning and preparation needs.