Barack Obama is rolling back the regulations under which students are required to repay student loans Although it took him far to long to realize that Republicans will accept no compromise short of cave-in, he is finally doing what he can to help some of the people lambasted by the Republican Recession and locked out of the American dream by Republican class warfare.
President Barack Obama recalled his struggles with student loan debt as he unveiled a plan Wednesday that could give millions of young people some relief on their payments.
Speaking at the University of Colorado Denver, Obama said that
he and his wife, Michelle, together owed more than $120,000 in law school debt that took nearly a decade to pay off. He said that sometimes he’d have to make monthly payments to multiple lenders, and the debt meant they were not only paying for their own degrees but saving for their daughters’ college funds simultaneously.
"I’ve been in your shoes. We did not come from a wealthy family," Obama said to cheers.
Obama said it’s never been more important to get a college education, but it’s also never been more expensive. Obama said his plan will help not just individuals, but the nation, because graduates will have more money to spend on things like buying homes.
"Our economy needs it right now and your future could use a boost right now," Obama said.
Obama’s plan will accelerate a measure passed by Congress that reduces the maximum required payment on student loans from 15 percent of discretionary income annually to 10 percent. He will put it into effect in 2012, instead of 2014. In addition, the White House says the remaining debt would be forgiven after 20 years, instead of 25. About 1.6 million borrowers could be affected.
He will also allow borrowers who have a loan from the Federal Family Education Loan Program and a direct loan from the government to consolidate them into one. The consolidated loan would carry an interest rate of up to a half percentage point less than before. This could affect 5.8 million borrowers.
Student loans are the No. 2 source of household debt. The president’s announcement came on the same day as a new report on tuition costs from the College Board. It showed that average in-state tuition and fees at four-year public colleges rose $631 this fall, or 8.3 percent, compared with a year ago. Nationally, the cost of a full credit load has passed $8,000, an all-time high… [emphasis added]
Inserted from <CBS>
Of course some will say that this is not enough, and they will be right when they do. If people want more, they need to give Democrats a majority in the House and a filibuster proof majority in the Senate.
12 Responses to “Obama Helps Students”
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There might be hope for my daughter’s continued grad degree yet! Her under grad is barely getting her room and board! – and she lives with me!
Tell her you’re moving in with her. 😉
It’s a start.
Yes, TomCat, you’re right again! “Of course some will say that this is not enough, and they will be right when they do. If people want more, they need to give Democrats a majority in the House and a filibuster proof majority in the Senate.”
Actually I left something out. That filibuster proof major majority must count no DINOs.
It’s a start , and it’s recognition of a real problem existing ; However I think it’s a tip of the iceberg issue– I had loans to finish grad school , took 7 years to pay off— They were low interest government loans , available at the time ; in the 1980s – I attended good schools with high standards—the loans were managed thru the schools- there were strings—including being credit worthy– I think this factor plays into so many bad college loans— Many of these “kids” are not good risks when they get the loans—-nor are their parents ; I guess I am old fashioned– you can call me that if you like ; But I tend to think College and graduate study is not a right–but a privilege– in my own experience I went back to college 20 years after high school— at a time I was motivated—I see many young people going for all sorts of reasons and non reasons— taking huge loans and no thought to repayment — I could write a lot about that point alone—
Upper education has always been expensive— true—- but I do not understand the escalation in costs at state schools– I will most likely get flack for this- but I see one problem being the overly high salaries of administration and administrative staff– with many institutions looking like mushrooms in their structure– no balance-the top over staffed- and the support becoming even more slender—
I could write more– When really the only point I wanted to make , is that this is also a complex issue , with many layers to be addressed–
Phyllis, I’ll meet you half way here. I do not think a single student with the ability and motivation to master the material should be denied any level of education, from community college through post doctoral studies, because of the inability to pay. I have proposed that people pay for their education with a term of community (or military) service, at a decent wage, the length to be determined by the level of education. For example, a doctor, having received his education at taxpayer expense, might spend his first five years working at a rural clinic in a community that lacks care.
As for administrative salaries, I shall defer to those who have knowledge of that subject. I do not.
The NY Times has a good FAQ about the program, titled “Clearing Up Some Confusion About the New Federal Student Loan Rules”
http://www.nytimes.com/2011/10/27/your-money/student-loans/explaining-new-federal-student-loan-rules.html?_r=2&ref=business
Thanks, Nameless!
It might be a little late in coming, and it might not help everyone, but it is a start. every journey starts with the first step.
Very true!
Sadly, it doesn’t seem like a college degree packs the same “punch” it once did. (There’s similar graph for females at the graph’s website) But then again, given the time-frame from 1999-2010 it could be more a reflection of Bush, Wall Street and the repubicans’ economic disaster they inflicted on our entire country. (Well, not the super-rich … the Income Gap separating them from the rest of us has EXPLODED.)
That says a mouthful!