On Monday, President Obama will roll out a plan to cap student loan payments at 10 percent of a borrower’s monthly income, providing relief for approximately five million people who took out loans before October 2007 or stopped borrowing by October 2011.
“From reforming the student loan system and increasing Pell Grants to offering millions of students the opportunity to cap their monthly student loan payments at 10 percent of their income, making a degree more affordable and accessible has been a longtime priority for the President,” says the White House in a statement. “But he knows there is much more work to do and that’s what this week is all about.”
I’m sure Chanel Carroll, who wrote that SallieMae song, would be happy. But we’d be totally ecstatic if POTUS could somehow completely wipe out student loans altogether. But what’s that saying our grandparents used to drop on us? Beggars can’t be choosy.
House Speaker John Boehner says this does little to make college more affordable. “Today’s much-hyped loophole closure does nothing to reduce the cost of pursuing a higher education, or improve access to federal student loans – nor will it help millions of recent graduates struggling to find jobs in the Obama economy.”
Read more about the plan to dig into SallieMae’s pockets here.