President Obama Announces Student Loan Forgiveness Plan

Wednesday 26 October 2011 ·

President Obama announced a plan to ensure that students are able to engage with high levels of federal loans for students admitted. Limit the obligation to reimburse the students, and passing over the burden of repayment to taxpayers, colleges and universities will be able to continue to increase tuition at a rate that exceeds almost all other cost centers in the U.S. economy .. The move will come as a great relief to an institution increasingly concerned that students might not be able to pay school fees soar.

The President spoke to a crowd at the University of Colorado at Denver and said he would take executive measures to start the new steps, starting in January.

"Our economy needs now, and the future could be used to add right now," Obama said.

White House officials said it could help up to 1.6 million people and reduce their monthly loan payments by as much as several hundred dollars.

"Steps like these do not replace the bold steps that we need from Congress to strengthen our economy and create jobs, but they will make a difference," Obama said in a statement.

"Some of these people in Washington are still not receiving the message we need your voices be heard." Did he say, "Boys, I want the kids involved. I need to activate"

The current plan for borrowers enrolled in fee-based income takes 15 percent of discretionary income paid in 25 years prior to the cancellation of debt, Obama's new plan, the remaining debts will be forgiven after 20 years.

Program "Pay As You Earn" will begin in January, two years before the plan was to under federal law.

According to the student project debt, in 2009 the average debt of students at Boston University was $ 30,998, while the Northeast was $ 15,937, $ 15,043 at MIT, Harvard, $ 10,871 and $ 23,731 at Tufts.

The "pay as you earn" program could benefit up to 1.6 million borrowers, reducing their payments by as much as several hundred dollars a month. Administration officials told the Washington Post all remaining debts of federal loans are forgiven after 20 years and that some borrowers who have more than one loan federal student will be allowed to consolidate their debts, "in some cases to reduce their interest rates up to half a percentage point . "

"These are real savings that will help graduates start their careers," said Arne Duncan, secretary of education, the conference call for journalists yesterday. "These changes can make a big difference in the lives of current students and recent graduates entering the job market one of the toughest in recent history."

Essentially, you can understand is that students do not pay the debt. The government uses a lot of money every year, but this difference is that most people do not get it. Always the student loan forgiveness for teachers is just one example, anyone can check and find a good student loan forgiveness education on their own.

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