Republicans wont act to do what’s necessary to help Americans, so today, President Obama will use his executive authority to do just that – help students. The White House said the President will announce his plan today, a plan that will bring relief to students in two specific ways:
First, he will accelerate a measure passed by Congress that reduces the maximum
repayment on student loans from 15 percent of discretionary income annually to
10 percent. The White House wants it to go into effect in 2012, instead of 2014.
In addition, the White House says the remaining debt would be forgiven after 20
years, instead of 25. About 1.6 million borrowers could be
affected.Second, he will allow borrowers who have a loan from the
Federal Family Education Loan Program and a direct loan from the government to
consolidate them into one loan. The consolidated loan would carry an interest
rate of up to a half percentage point less than before. This could affect 5.8
million more borrowers.
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