Just last week U.S. President Barack Obama addressed a crowd of students at Georgia Tech. It was there that he addressed the issue of student loan debt. President Obama unveiled his plans on how to make student loan debt more reasonably manageable, as well as less difficult to understand.
Obama discussed the recently signed “Student Aid Bill of Rights,” a series of laws that will help those who depend on federal student aid to attend college to better understand the financial impact of student loans. The SABR states that “everyone deserves the right to a quality and affordable education, access to the resources that will enable students to repay their student debt, the right to an affordable re-payment plan, and access to reliable information, as well as fair treatment through customer service.”
The SABR suggests that students who maintain a good standing, as well as are involved with community service, should be able to attend two years of community college free of charge. The legislature suggests students be offered reasonable re-payment options, such as pay-as-you-earn plans. The SABR also moves that payments made by students before their official repayment date must be applied to their loan which holds the highest interest rate.
Millions of Americans are in crippling debt due to student loans. The current U.S. economy is in shambles. How will the country fund such dramatic cost increases?
Will President Obama’s Student Aid Bill of Rights turn dreams into reality and allow millions of Americans to breathe much easier and with less debt?