The White House announced Wednesday that President Barack Obama will be giving millions of people the opportunity of lowering their student loan payments and consolidating their loans.
Obama is using his executive authority to bypass congress to implement a plan that will:
- Reduce the maximum repayment on student loans to 10 percent of a person's discretionary income annually starting in 2012. Congress had passed a plan that reduced the maximum repayment to 15 percent, with it taking effect in 2014.
- Forgive remaining debt after 20 years. Congress had it forgiven after 25.
- Allow loans from the Family Education Loan Program and direct loan from the government to be consolidated into one loan, possibly lowering the interest rate percentage.
So, what do you think?
Does this help address the issue with skyrocketing student debt? Does it hurt it by failing to address the rising cost of tuition or Americans taking on too much debt? Should the president have used his executive authority to bypass congress to put it through? Let us know by voting in the poll, then tell us what you think in the comments.