The Government has introduced a new program for student loans that will allow borrowers who make under the current rate to refinance up to $15,000 in loans if their income falls below the current standard.
The move will be welcomed by many borrowers who struggle with high repayments and are struggling to find jobs in the financial sector.
However, many will find that they can’t take out loans from the Government if their loan amounts fall below the existing rate, so the program will be limited.
It will also not extend the repayment terms beyond 30 years.
Student loan borrowers will have the option to refit their student loans by paying an annual fee of up to €1,400 or a maximum of €2,000 per year.
They can also defer payments by paying off their loans in full before the end of the loan term.
The Government will not be able to refinish or defer the repayment of loans under the program.
However it will be able refinance loans that are over the previous terms by paying the new rate of interest.
The new program is a further blow to borrowers who have been struggling to meet their repayments.
The Government’s plans will not extend their repayment terms to include their child and grandchild.
The Irish Times understands that the Government is hoping to extend the program to other borrowers in the coming months.
The new loan forgiveness scheme was originally announced as part of the government’s reforms to the way in which the Government manages the cost of its student loans.
Last year, the Government announced that it would allow all students to refloat their student loan debt in a similar way as those who pay down their mortgages.
However the government announced in March that it was changing course and allowing students to opt out of the current program.