The White House says that 70% of those who earn a bachelor’s degree, graduate with an average debt of $28.400 in public and private schools, and this is one of the biggest economic problems currently facing our country.
President Barack Obama has a program which is called the Bill of Rights Student Aid, which is a list of priorities, he said, that will serve to ensure that all Americans have access to education of superior quality at a lower cost.
Federal Student Loans Being Monitored
These measures include that the Government monitor federal loans for higher education, including new ways to help students as Isela to pay its debt. The Department of Education, according to the memorandum signed by Obama, will develop a new system to help students to file complaints when they have a problem with their loans.
Using the Online Access Point
The loan providers will have to be more proactive when notifying their customers if they are falling behind on their payments. An “access point” on WhiteHouse.gov/CollegeOpportunity is where students can find information about their loans.
Paying Off More Expensive Loans
To help students pay for more expensive loans for which lenders must pay the loan payments with a interest rate that is higher, unless the customer requests otherwise. This is nice because it allows anyone with an expensive loan to pay it off easily.
Extra Payment Options
The administration will ensure that debt collectors do not charge excessive fees to students and help them catch up with their payments. It will also help how students are treated in bankruptcy courts and will work with the Treasury Department to help students make payments according to their income.
The Obama Plan Has Many Benefits
Obama asked federal agencies to analyze the trend of student debt and propose regulatory changes. However, the steps announced by Obama are relatively modest, given that the he started this whole program without any help from Congress.
Helping Families Afford Higher Education
In January, President Obama proposed to offer two years of community college to about 9 million students who meet certain requirements. Obama also raised the maximum amount from $1,000 for Pell Grant scholarships to $5730 a year and created a new tax credit to help families afford higher education for their children.
Various Ways to Pay Off Your Debt
In 2005, the Senate removed protections for debtors. This gives you the right to refinance the debt, which allows creditors to remove a percentage from your salary, social security, disability, or part of your house if you own one.
Various Programs Available
Though President Obama has introduced some changes, such as lowering the interest rate, and installing a plan to pay off your debts according to what you owe, this is limited to a certain time, then you go back to the monthly payments. Although it is not perfect, it is definitely an upgrade compared to what existed before – which was nothing.