Sentence examples for repayment cap from inspiring English sources

Rather than imposing a fixed interest rate, lenders typically set a repayment cap – the amount they expect to receive in repaid principal and charges.

Neither the consumer bureau's chart, nor the Department of Education calculator, has been updated to reflect President Obama's proposal, announced on Wednesday, to reduce the income-based repayment cap to 10 percent of income, for some students graduating next year and thereafter.

President Obama's recently announced plan to expand the repayment cap on federal student loans and Elizabeth Warren's now-dead bill that would have allowed 25 million Americans to refinance debt at lower rates both focus on the real-world impact of the student loan problem.

One of these plans, called Income-Based Repayment, caps the required monthly payment at an affordable amount based on the borrower's earnings and family size.

This help could take the form of a grant (replacing potential unemployment benefits) to cover his moving expenses, a low-interest government-backed loan with repayment capped at a certain share of future earnings, or some combination of the two.

But the new loan repayment caps only apply to current and future students, leaving indebted graduates in the lurch.

Mr. Obama sought to spread the word that his administration is speeding a change in a 2009 law that will allow people who remain current on repaying their federal Stafford loans to have their repayments capped at 10 percent of their disposable income, down from 15 percent, so borrowers can more easily manage their debt.

The first one, Income-Based Repayment (IBR), caps monthly student loan payments based on what you make and the number of people in your household.

Students would also be able to refinance their outstanding loans at current lower rates, and future graduates would be eligible for an income-based repayment program, capping debt payments at 10% of their income.

The order expands a 2010 law, which currently serves only 200,000 indebted students, by lowering monthly repayments and capping the number of years students must continue to pay.

Borrowers can also take advantage of the government's income-driven repayment plans that cap monthly payments to a percentage of their earnings.