President Obama signed an executive order
that lowered the student loan payments
that lowered the student loan payments
President Obama signed an executive order to lower student loan payments to 10% of the student’s income. According to the White House, the new law expands on the law passed in 2010.
Graduates will be allowed to take part in a Pay As You Earn (PAYE) program. For graduates who work in the private sector, they will be able to have their loan debt forgiven in 20 years if they do not default.
As for graduates who work in the public sector, they will be able to have their loan debt forgiven in 10 years if they do not default.
The PAYE program is only available for those who graduated after October 2007 or who’ve borrowed for their college education since 2011.
During a press conference on Monday, President Obama told the audience that his decision was due to the high cost of a college education.
President Obama emphasized the importance of a college education and how student loans helped him and First Lady Michelle Obama to have access to an education that provided them with the skills needed to succeed.
The president stated that a college education has been the means for people to achieve the “American dream,” but the rising cost of a higher education is making it difficult for those to achieve their goals.
President Obama was quoted in a White House press release as saying, “At a time when higher education has never been more important, it’s also never been more expensive. Over the last three decades, the average tuition at a public university has more than tripled. At the same time, the typical family’s income has gone up just 16 percent-These rising costs have left middle-class families feeling trapped."
According to the White House, 71% of graduates with a baccalaureate degree have an average debt of $29, 400. The Domestic Policy Council and The Council of Economic Advisers reported that mortgages and student loan debts are the top two household debts.
It was also reported that in 2014, the student loan debt totaled $1.1 trillion; whereas in 2003, the student loan debt was $250 billion. The White House stated that 5 million borrowers will be helped by the new law.
Graduates will be allowed to take part in a Pay As You Earn (PAYE) program. For graduates who work in the private sector, they will be able to have their loan debt forgiven in 20 years if they do not default.
As for graduates who work in the public sector, they will be able to have their loan debt forgiven in 10 years if they do not default.
The PAYE program is only available for those who graduated after October 2007 or who’ve borrowed for their college education since 2011.
During a press conference on Monday, President Obama told the audience that his decision was due to the high cost of a college education.
President Obama emphasized the importance of a college education and how student loans helped him and First Lady Michelle Obama to have access to an education that provided them with the skills needed to succeed.
The president stated that a college education has been the means for people to achieve the “American dream,” but the rising cost of a higher education is making it difficult for those to achieve their goals.
President Obama was quoted in a White House press release as saying, “At a time when higher education has never been more important, it’s also never been more expensive. Over the last three decades, the average tuition at a public university has more than tripled. At the same time, the typical family’s income has gone up just 16 percent-These rising costs have left middle-class families feeling trapped."
According to the White House, 71% of graduates with a baccalaureate degree have an average debt of $29, 400. The Domestic Policy Council and The Council of Economic Advisers reported that mortgages and student loan debts are the top two household debts.
It was also reported that in 2014, the student loan debt totaled $1.1 trillion; whereas in 2003, the student loan debt was $250 billion. The White House stated that 5 million borrowers will be helped by the new law.
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