Monday, October 31, 2011

Student Commentary: Obama's Plan for Student Loan Debt Relief

Student loans and student debt are big issues among those who attend universities and colleges.
In 2010, President Obama established a plan, which was approved by Congress, to reduce loan borrowers’ monthly payment from 15 to 10 percent of their discretionary income as of 2014, according to CBS News. Additionally, the plan stated that the balance of the borrower’s debt would be forgiven after 20 years of payment instead of 25 years.
On Wednesday, Oct. 26, President Obama made an executive order that would make those benefits available to student loan borrowers as early as 2012.
This plan will allow recent graduates to consolidate their loans and receive lower interest rates. A program will also be developed to help students increase their knowledge of available options prior to taking out loans.

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