My ears perked up the moment I heard that Obama had plans to ease the financial burden created by student loans. Earlier this month, Obama announced that the expansion of former loan affordability program, Pay As You Earn The program called for a 10% salary cap on monthly repayments, and complete balance forgiveness after 20 years.
As a result of the expansion, over five million people will be eligible for this program. Eligibility was primarily based on the time in which each graduate attended school. Previously, the program excluded anyone, whose loans were taken prior October 2007 or had not been borrowed since October 2011, but is now more inclusive and will even have a larger benefit to student debt accumulated while earning degrees at a graduate level. So that means that anyone who currently has outstanding student debt can potentially gain from this expansion.
Despite the overall positive impact on the majority of US population, of course you have some opposition. The burden of the decrease in revenues produced by student income has to be picked up somewhere. Republicans have already begun to express their disagreement, because they will be forced to pick up the slack through an increase in taxes that will only impact those in higher tax brackets.
No comments:
Post a Comment