Wednesday, February 25, 2015 - 11:02am

President Obama set to lower student low payments


POSTED: Monday, June 9, 2014 - 5:31pm

UPDATED: Tuesday, June 10, 2014 - 8:56am

student loan debt is through the roof and that number keeps climbing. President Obama is tackling the student loan issue again. He wants to lower student loan payments, he wants to bring relief to the burden of student loan debt.

It's reported the department of education will renegotiate its contract with loan providers to give financial incentives to borrowers. A student we spoke to says he doesn't see a relief by lowering monthly payments because you have to pay the full amount either way and maybe even more.

"It's certainly a problem for many students when they graduate," said Jay Oliver, Financial Advisor of Rose Point Capital.

The national average of student loan debt is close to $30,000 and our state sits around $24,000. "Students graduate with modest paying jobs and their student loan is a burden that they carry with them sometimes 10,15 or 20 years before they can repay those loans," said Oliver.

President Obama is promising to cap student loan payments for those who are on track, meaning able to pay their loans on time. Here's the president's relief plan: Capping student loan payments at 10-percent of the students income and capping interest rates for active-duty military members at 6 percent.

"It just doesn't make sense, there's way over a period of time we are going to be in debt over the 15 years," said Bret Ralson, senior at UT Tyler.

After attending ETBU and furthering his education Ralson tells us 25-percent of his income goes toward his student loans. "My Stats book is $400 that's for one semester plus the tuition is outrageous." He says that the problem and the reason he has to borrow. "In my past with Obama everything is good up front on paper but in the future it doesn't work out."

"Limiting the repayment to 10-percent of the discretionary income might sound really helpful to many people," said Oliver.

Oliver says it will be easier to make but the debt will still be there. "It just means that the terms will be the number of years to repay the debt will be more and the ultimate outcome would be that they would pay more in the long run."



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Students, whenever possible, should get a part-time job and work their way through collage.

Don't depend on loans. The loans and intrest will eat you alive.

And you can thank Obama for the job market. FIVE years of this and it's still pitiful. Reagan turned around Jimmy Carter's 'Misery Index' in just 2 years.

Hope for change in 2014. We can't vote out Obama... but we CAN vote out Democrats to show our displeasure with this Administration.

The answer is to stop giving student loans.
Student loans subsidize colleges & universities.
Many have been raising tuition & costs every year for 20+ years.
They need to control their costs.
They offer online courses & charge huge fees when the student is not using the facilities.
Gov't does not need to provide subsidies for every organization.
Colleges & universities pay no state property taxes & very little, if any, Fed & state taxes.
It's time for them to start cutting costs like all others.

PS I assume you're a college grad so, you might want to check your capitalizations, spelling & grammar. Otherwise, someone reading this might think you're from a backwater, hick-type part of Texas.

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