President Obama Announces Relief Plan for Student Loans

POSTED: Wednesday, October 26, 2011 - 12:23pm

UPDATED: Thursday, October 27, 2011 - 10:51am

Student loan debt is about to hit an historic peak in this country. This year, for the first time, college grads will owe more than one trillion dollars, more than we owe on credit cards.

In Colorado, President Obama is announcing more relief for students repaying those loans. Tuition has shot up 600% in the last 30 years, causing more students to borrow more money.

The average student graduates college with $24,000 in student loans. A quarter million recent grads are unemployed. Even those who are working, are worried about paying if off: "I'm pretty sure it will be coming out of my estate the day that I die," said one college graduate.

As part of health reform, the federal government eliminated banks as middlemen. Today, President Obama will announce new "pay as you earn" rules.

The President calls for allowing borrowers to consolidate new loans and old into one loan with a .5% drop in interest rate, which for many, may prevent default.

Ann McKeehan graduated five years ago with what she calls a "mountain of debt,” but questions if cheaper loans are a smart move. "Our government is sort of constrained enough with resources that I question, I would question the prudence of doing something like that right now."

Despite the cost, college is still a good deal. The unemployment rate for college grads is less than half the national average. President Obama makes that announcement today at the University of Colorado, before returning to Washington.

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So how is a savings of $8 dollars going to help me pay off my $125,000 Med School Loan? Why is obumer saying this is new when in reality this plan was to take place in 2014 and he just moved it up to now?

This sounds great until you really understand what Obummer actually did...He allowed the already overburdened students / graduates to pay less, which means it will take them longer to pay, hence, they will wind up paying more due to the accrual of interest on those loans, and this only covers their Federal student loans. Most students have a combination of both Federal and private student loans. This did NOTHING to help with the private loans. Thanks again Obummer, for nothing !!

yet he has no time to go to DC and do his job? are we pleasantly distracted yet. 58 jobs bills still waiting to be signed ,but wait ,then he has no campaign points. SIC we need a president not a pollster

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