Student Loans Payments Keyed to 10% of Income

This could have been worse. Think if Obama would have just forgiven all student loans.
Check it out:

President Obama is unveiling a presidential memorandum that will allow students with loans taken out before 2007 to apply for a cut in loan payments by having them limited to ten percent of their annual income, a plan not unlike a ten percent religious tithe.

The President had already put the loan limit in place for current school loans, but with his Monday June 6 signing he grandfathered in all previous loans, as well.

The average student leaves college with a $25,000 loan burden and his ten-year loan costs him roughly $280 a month in payments. But some students leave school with far more debt and monthly payments can be crushing at hundreds of dollars more per month. Obama hopes to lighten this burden.

Naturally, paying less per month will lengthen the loan repayment time. To “solve” that problem, Obama also has decided that if a student still owes money after paying for 20 years, the remaining amount will be wiped off the books–at the cost to the taxpayer, of course.



Sign up for our daily email and get the stories everyone is talking about.


Previous post

Clintons Were 'Dead Broke' but Spent Millions on Homes in D.C. and New York

Next post

Hillary Clinton: Obama and I Restored America's Leadership in the World

Join the conversation!

We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.