Education News

President Obama addresses student loans

President Obama signs off to make student loans more affordable for the middle class.

In an effort to address the rising costs of college, President Obama signed an executive order on June 9 to make student loans more affordable.  The memorandum will give nearly 5 million students the opportunity to cap their student loan payments at 10 percent of their total income. Obama calls this plan “Pay as You Earn.”  In addition, the order will call for the renegotiation of contracts with private companies that service student loans, in the hopes of making financial payments more flexible for students.  The memorandum will also increase communication with various organizations and associations to inform students of all the possible opportunities available to them.  Students will be able to choose the most affordable option.

The President’s goals are to reward responsible students who are doing all the right things to further their education but who are still prone to financial debt. Obama pushes for the unification of Congress to develop laws that will make college even more affordable.

The complete memorandum will not be in effect until December 31, 2015.

• Read more about this announcement
• Learn more about President Obama’s plan to make college affordable
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Click here to view the Q &A session on Tumblr

Photo Courtesy: Associated Press

Submitted by Sean Walker, COSA Ambassador