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Obama Fast-Tracks Student Loan Relief Program

posted by Christian on October 26th, 2011

Now more than ever it’s important to get a good education. But with costs on the rise and the job market still suffering doing so can seem daunting, nigh impossible. In a recent speech at the University of Colorado in Denver, President Obama acknowledged this and announced that he wants a student debt relief program to go into effect sooner than previously announced.

The new initiative will put an income related repayment cap on loans, reducing the maximum required payment on student loans to just 10% of annual income. Originally the measure was to go into effect in 2014 but the President says that he wants it to start as early as next year instead.

This comes to a welcome relief to many as a recent study showed that fees at four-year public colleges rose $631 this fall, or 8.3 percent, compared with a year ago. Education Secretary Arne Duncan told reporters on a conference call that the new legislative changes could save some borrowers hundreds of dollars a month.

“These are real savings that will help these graduates get started in their careers and help them make ends meet,” Duncan said.

(Source: LA Times)

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