In an executive order signed by President Obama, slated to go into effect December 2015, over 5 million people facing college tuition debt may be able to limit repayments of federal student loans to ten percent of their monthly incomes.
The executive order would expand the current ' Pay As You Earn' program, which lets borrowers cap monthly loan re-payments at ten percent of income. The president suggested that students should be able to refinance both federal and private undergraduate student loans at lower interest rates, the same as homeowners. In addition, the Obama administration will attempt to renegotiate government contracts with companies like Sallie Mae, the nation's leading provider of education funding.
The POTUS has been vocal with Congress about offering relief for students who obtain higher education but are unable to find jobs to cover the debt incurred to earn their degree. He estimated 71 percent of students who graduate with a bachelor's degree carry an average debt of $29,400. In his announcement, he scolded Republican congressional officials who opposed the legislation.
'If you're a big oil company, they'll go to bat for you. If you're a student, good luck,' Pres. Obama said.
Posted by Unknown on Tuesday, June 10, 2014 - Rating: 4.5
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