WINOOSKI, Vt. -
Soon there will be more help for people struggling to pay college loans.
Students are graduating with more debt. Last year on average it was nearly $27,000.
The federal program called "Pay As You Earn"really helps people who either graduate without a job or think they'll end up in a career that doesn't pay well.
On December 21st, the program is changing and could make it easier for people to pay off their loans.
"I think this will actually be a tremendous improvement particularly for borrowers who are struggling in the current economy," says Scott Giles, VSAC Vice President.
Giles says he helped draft the program's new rules.
Right now for people who qualify their monthly loan payment is capped at 15-percent of their spending money. That will soon drop to just 10-percent.
Also now people can have their loan wiped out after 25-years no matter how much they owe. That will be reduced to 20-years.
"This plan I really think will help millions of people across the country make their payments," says Giles.
One of those people could be UVM sophomore Nick Kuvalanka.
"Pretty concerned. It's an expensive school and paying a lot to go here," says Kuvalanka.
Kuvalanka says his environmental studies major will leave him with tens of thousands of dollars in college loans which could be hard to pay back.
"Especially with my major, I'm not sure if I'll end up a place that will pay me much," says Kuvalanka.
VSAC really encourages people to check out all the options.
Especially because if you land a better job and you make too much to be in the program, you'll be kicked out and owe potentially even more money.
