Wednesday, October 26, 2011

Obama's initiatives for student loan relief



President Obama has proposed two initiatives to help those strapped with college loan debt.

One of Obama's proposals would advance the start date for a special loan repayment program based on income that aims to help struggling graduates.

The way the Income-Based Repayment Plan works now is that graduates who enroll get charged 15% of their monthly discretionary income to pay off loans, with debt forgiven after 25 years.
Congress passed a law set to go into effect in 2014 that would drop the monthly payment for loans originated that year to 10% of discretionary income and would forgive all debt after 20 years.

The administration would improve on the law by fast-forwarding the new terms to take effect in 2012 on loans originated that year, White House domestic policy adviser Melody Barnes noted Tuesday.

So far, about 450,000 students are enrolled in the income-based repayment plan, but hundreds of thousands more are eligible.

The other proposal would encourage graduates with two or more kinds of federal loans to consolidate their loans, giving them a small interest rate break of 0.5% [ SOURCE ]

11 comments:

Leila said...

Finally, an answer to all the students' prayers. In these economic times, all parents and students wish for is to lessen their burden in paying these loans.

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Anonymous said...

thanks

Jerrick said...

I think President Obama's proposal to help those people facing college loan debt is really commendable. Advancing the start date for the loan payment that would be based on the student's income will surely help students.

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Jane said...

As a product of student loans, I am glad the president has taken the initiative to help the students pay their debts. However, I have also read that this new bill is not news at all. Most of the policies are lifted from an existing policy related to student loans.

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Anita said...

This is the solution to the burdens that many citizens have been waiting for. This will surely give them financial freedom. I hope that Obama continues to promulgate laws that will enhance the livelihood of the nation.

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jamie stint said...

The students would really benefit from this. They just have to implement this properly so everyone who wishes to avail it would get a chance and the system would be smooth for everyone. Bad Credit Car Loan

custom exhibition stands sss said...

This is the answer from the student's prayers. I think Obama did a good job in approving on that petition for students loans.

same day loans said...

I think it is a great step to help the students.Actually this program will help those students who fall in student loan debt.

generic ink said...

Great news!Thanks Obama to take such a fantastic steps to help students.

Timothy Gates said...

Great step to help loan debt students.I appreciate this program.

Olympic Champion Barai said...

Congratulation Barak Obama to take a great step to help the students.I appreciate his plan and program.