President Obama’s student loan repayment plans in 2015:
President Obama’s plans to help students pay back student loans has recently made headlines and the issue is a controversial one. With a sweep of his pen, the President signed off on a memorandum that will drastically alter the way Americans pay back student loans.
As more and more potential and former students fret about ways to pay off student loan debt, the country has debated ways to attack the student loan debt problems of America. The President’s administration is developing a system of repayment that will cap a student’s loan payment to 10 percent of that person’s income for 20 years. This is the President’s idea of an affordable payment plan which he states all American citizens have a right to access.
Currently across the country, there are tens of millions of Americans holding onto student loan debt. This adds up to an incredible sum of over $1.3 trillion with the average student leaving school with almost $30,000 in overall student loan debt. Many students have acquired much more than this in order to pay for their schooling. The President aims to make the process of student loan repayment easier for Americans to manage.
The President has said that in addition to reviewing the current law that govern protections for borrowers, his administration is also going to require business that service the loans for student provide clear and easy-to-understand information regarding repayment options. The White House has said that it wants full disclosure from student loan companies so that borrowers will have a more comprehensive understanding of who is servicing their loan. These changes, and more, are expected to sweep in by July of 2016.