For a link to see if you are eligible, click here: http://www.whitehouse.gov/issues/education/higher-education/ensuring-that-student-loans-are-affordable
LINCOLN, Neb. -- If you're stuck paying off those student loans, a new order by President Barack Obama may be some of the relief you need.
He says this could help around 5 million borrowers just as long as you pay it back on time.
Josh Bivins is a senior at the University of Nebraska-Lincoln, he's majoring in history hoping to go to graduate school and become a professor. He had to get out $40,000 dollars worth of loans to help him through college.
"My plan is to work and pay them off while I'm in school and then when I'm in my master's program," said Bivins.
Bivins does receive some Federal help like a Pell grant to pay for tuition and books, but that doesn't cover everything.
"I have two jobs right now during the summer. And I live at home, so I don't have bills to pay. So all the money I make goes to my bank account to pay off my loans," said Bivins.
According to these new rules, the payment plan lets you pay no more than 10-percent of your monthly income in payments beyond 2007. Which for Bivins can ease the pain of paying back those loans.
"If they did some kind of student loan forgiveness, or something like that, it would really help," said Bivins.
Over at Education Quest they help students plan their expenses and they say to avoid being surprised about how much you owe have a plan in place.
"It's so much better to think about those things earlier in the process, so that way, students can realize it's money you pay back with interest," said RJ Vega a college planning specialist at Education Quest.
And cutting the amount you pay per month for these loans can help out especially with all your other expenses.
"Having a high level of loan debt can result in a higher monthly payment and we add that to other sources of debt like other loans, a car loan," said Vega.
For Bivins and his friends with loans, he says this new rule can help their bottom line.
"I have friends that have graduated that are paying four or five hundred dollars on loans. Well, if they didn't have that and they could pump that into the economy by buying a house instead of renting an apartment, that would be helpful for the economy," said Bivins.