Obama to revise student loan repayment?

Printer-friendly versionPrinter-friendly versionOn January 25, 2010, President Obama announced his plan to improve Income-Based Repayment (IBR), a provision under the College Cost Reduction and Access Act that provides relief for those with high student debt.   IBR allows for much reduced monthly student loan payments for those with high debt-to-income ratios.  For more information on IBR, visit Equal Justice Works' student debt relief resources section and http://ibrinfo.org. President Obama proposes lowering the cap on federal student loan payments from 15 to 10 percent of discretionary income, and forgiving any remaining debt after 20 years of payments, rather than the current 25 years.  Those in public service, including nonprofit and government employees, can get their remaining debt forgiven after 10 years.  Equal Justice Works applauds the President’s plan to increase student debt relief by improving IBR.  I look forward to hearing the President set out this timely proposal in his State of the Union address. -Heather Back to Equal Justice Works Blog

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It is crazy to think about how much loans can accumulate over the years. When you’re in college you don’t really think about them. But, when you graduate and start looking for a job you are worrying about the loans you have to pay back. I would give anything to
have my loans disappear!But it has helped me a lot through college despite it all.

The Extended Repayment Program delivers eligible loan debtors with payment relief through an expanded reimbursement term of as much as 25 many years.

Great post I especially find it useful. Thanks for the information. Knowing that President Obama is lowering the cap on federal student loan payments from 15 to 10 percent of discretionary income, and forgiving any remaining debt after 20 years of payments, rather than the current 25 years is a relief to those who might not have the money to pay for their tuition.

Thanks once again for the information

President Obama seams to be making the right choices, hopefully it continues and the real question is if this will continue as his term goes on

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Heather, thanks for the information. Repayment of student loans is something not many college students think about when we are in school. It's not only until we graduate that we realize we are in a worse financial position than when we first went to school. I invite you and others to look at my article on

ways to pay off student loans faster

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Thanks.

I trust Obama's expertise on the topic of education. He may not always find the best solution that satisfies everyone, but what president--let alone person--could manage that???

Absolutely wonderful arthur! I hope you continue this way... thanks a lot.

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I wish we had such a progressive forward think government over in the UK! It sounds like president Obama is on the right track. Although it is apparent that no matter what any government sets in place regarding any new policies it is almost certain to upset some people as much as it pleases others!

Can a former student, graduate, get help or even forgiveness of their student loan if they are not even making enough money to make payments? Or does there have to be a sustained, long period of payment by the former student before he or she is eligible to get help?

I strongly support the latest public interest law. Go Obama Go Obama

Wow - a real can of worms has been opened here. Some really heated views and opinions. Reading some of them is quite an eye opener with regards to the lack of education received by some of the people making comments here. Some of the sentences put together here make absolutely no sense whatsover. Spot on Liz!

a bit self righteous really don't you feel? Do all MBA’s have new pools? May possibly some be producing enterprises that employ persons? Or are you saying that MBA=self-centered although govt Job=concern for other people? I’ve run into plenty of self-serving federal government employees and lots of compassionate MBA’s who have made a authentic big difference inside the world. How are individuals likely to earn a living if you will discover no jobs out there? Quite a few company grads start their very own firms and provide valuable opportunities for folks in their communities to earn a residing. Several of these small business revitalize inner cities and poor suburban and country locations. One woman I know includes a job that makes it possible for remain at house moms to gain a decent salary even though not obtaining to leave their properties. . . isn’t that a fantastic factor?

With as messed up as everything is right now. I feel that no matter what anyone in government says or does, it is going to hurt one demographic or another. Lessening the cost of student loans is a good thing, shifting the financial burden onto those that can't handle it isn't.

For many years I have been a supporter of 1 flat tax. That way nobody has any room to cry foul.

this is what obama calls sharing the wealth. Did you Remember that quote when you voted for him

Meg, a bit self righteous don't you think? Do all MBA's have new pools? Might some be creating businesses that hire folks? Or are you saying that MBA=self-centered while government Job=concern for others? I've run into plenty of self-serving government employees and plenty of compassionate MBA's who have made a real difference in the world.

How are people going to earn a living if there are no jobs out there? Many business grads start their own companies and provide valuable opportunities for folks in their communities to earn a living. Many of these business revitalize inner cities and poor suburban and country areas. One woman I know has a job that allows stay at home moms to earn a decent salary while not having to leave their homes. . . isn't that a good thing? Or can one only do good when they work for the government?

Interesting debate. I wonder why no one here, including Obama, has questioned why tuitions are rising at such a ridiculous rate. Tuition costs are out of control. Why not reign them in and crack down of the school administrations rather than the bankers?

The costs of tuitions are rising because our schools are pushing to out do each other building newer and more expensive expansions than their competitors. They pay professors high salaries for minimal work, and have a tenure system that restricts schools from removing incompetent or lazy professors forcing the hiring of even more of them.

I'm not sure the evil banking industry is to blame here.

The Presiden should forgive all Federal Student Loans. Education is a critical if America will remain competitive Internationally and students need to be able to have the choice of education. No one should be left behind.

Liz, hilarious! Thank you.

obama is the leader for me no worry about his issue, thanks for sharing

I'm not an English major, but it frightens me when people that tear down policies to expand educational opportunities construct sentences like this: "Why should us that work in the private sector pay for student loan “forgiveness”???. That is simply a shiftin tax burden to those of us who PAID for our college out of OWN pockets and who took out loans thet are not classified as student loans to pay for our kids education!"

Romi, it might be time for you to go back to school. I bet President Obama might even help you pay for it. I know you stated that you "have never collected a cent of government aid", but I'm fairly sure you went to school (public versus private doesn't matter), have been to a hospital and take prescription drugs. All of those things have been subsidized in some form or another by one or several levels of government. Government aid isn't for "po folk who won't work", it's for all of us to provide the tools necessary to enrich our own lives.

Zoe absolutely nailed the point of the program in her first sentence.

Don't you know Zoe, only the private sector matters. We don't need anyone to build our roads or administer social security or deliver our mail to anywhere in the country for less than $.50 or teach our children. All those people are just freeloaders compared to all those poor MBAs who are getting taxed so much they have to go a smaller in-ground pool then the one they wanted.

Government and public interest employees pay the same amount for expensive private schools and use the that education to better serve the public good. Just because someone doesn't have rich parents to help them pay for school doens't mean they should be forced into the private sector to pay for higher education. The government needs talented people working for it and this is the only way those people can afford to devote their talents to the public good. Paying public servants more in general is another solution, but it doesn't sound like Romi would agree with that any more. Yes, it's a problem that there aren't forgiveness programs like this for private and parent loans, but that's no reason to hate on the Federal Loan Program. I can't believe someone is arguing that people who devote 10 years to serving the public good shouldn't get help paying for the student loan debt that allowed them to contribute in the best way possible.

Why should us that work in the private sector pay for student loan "forgiveness"???. That is simply a shiftin tax burden to those of us who PAID for our college out of OWN pockets and who took out loans thet are not classified as student loans to pay for our kids education! When Bush raised student loan interest we were forced to take conventional loans out that had lower interest rates. This make college slightly more affordable. Now our children are paying their parents back. Now by some stroke of curring political favor with some portion of electorate, Obama is shifting tax burden to folks like us who work every day, and have never collected a cent of government aid.

That is bad enough, but;
Now government employees get an even extra break. This is NONSENSE. I am very dissapointed in the President (who I voted for)

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