PRESIDENT SIGNS EXECUTIVE ORDER LIMITING STUDENT LOAN DEBT

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By Miriam Raftery

June 11, 2014 (Washington D.C.)-- Students graduating from college today face an increasing burden of debt. The average undergraduate student must borrow $30,000 and for graduate students, the burden is many times worse. The high cost of tuition, even at public colleges and universities, has made college unaffordable for many students.

Aiming to help students, President Barack Obama signed an executive order on Monday requiring that people paying off student loans will not have to pay more than 10% of their monthly incomes.  The measure will be retroactive, extending this benefit to millions of borrowers.

The President also called on Congress to pass legislation that would provide even more reforms to help students. The bill is expected to be debated in the Senate this week, but it faces significant opposition from fiscal conservatives.

In his weekly address to the nation, the President said that graduation is a time for students and their families to celebrate achievements. But he added, “For many graduates, it also means feeling trapped by a whole lot of student loan debt.  And we’ve got to do more to lift that burden.”

The President noted that higher education is the most sure pathway into the middle class—since the unemployment rate for workers with a bachelor’s degree is just 3.3 percent – about half what it is for high school graduates.  And the typical graduate of a four-year college earns $15,000 more per year than someone with just a high school degree.   

But despite an increase in student loans available under the Obama administration, the cost of college has continued to rise.   Over the past three decades, the average tuition at a public four-year college has more than tripled.  

The president stated, “ I’ve heard from too many young people who are frustrated that they’ve done everything they were supposed to do – and now they’re paying the price.”

A bill introduced by Senate Democrats would help young people save money by allowing them to refinance their student loans when interest rates drop, just as homeowners can refinance their homes at lower rates to reduce their payments. 

The President said , “We’d pay for it by closing loopholes that allow some millionaires to pay a lower tax rate than the middle class. That’s the choice that your representatives in Congress will make in the coming weeks – protect young people from crushing debt, or protect tax breaks for millionaires.”

 This country has always made a commitment to put a good education within the reach of all who are willing to work for it,. That’s what made us an economic superpower.  That’s what makes us special.,” the President concluded. “And as long as I hold this office, I’ll keep fighting to give more young people the chance to earn their own piece of the American Dream.”

   

 


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