OBAMA STUDENT LOAN RELIEF 2012
Today President Obama is making more news by announcing new rules for student loans in this country which will be changed in 2012 to make things easier on the millions of students who have school debt. This was actually set to go into effect in 2014 but he wants it to start next year.
Under the plan, the maximum repayment amount will be reduced from 15% to 10% of a person’s annual discretionary income. Student loan relief is becoming a much bigger need in America as the cost of going to college continues to rise year after year. Students find themselves graduating with increasing amounts of debt into a world where unemployment rates are rising as well. In addition to lowering the percent that needs to be repaid each year, this new act will forgive the remaining debt a student has after 20 years instead of the 25 years set in place right now.
Additionally, any borrower that has a loan from the Family Education Loan Program (FELP) AND a loan directly from the government will be allowed to consolidate the two. This will result in a lower percentage of interest for the consolidated loan and will help millions of students pay less each month.
This new Obama student loan plan is something that is way overdue as our students continue to find themselves in a deeper financial hole each year. By giving them some loan relief, Obama is showing that he understands their needs and hopes that they will understand that he is doing everything he can to help them out.
