White House Takes Action to Ease Student Debt Burdens
By Consumers Union on Monday, June 9th, 2014
President Obama announced today that he will take executive action to expand access to affordable repayment plans. Starting next year, an additional 5 million borrowers with federal student loans will be able to cap their loan payments at 10 percent of their monthly income, under the “Pay As You Earn” repayment plan.
Up until now, the Pay As You Earn plan has only been available to borrowers who took out loans from 2012 on. The President’s action today will give those with older loans the chance to lower their monthly payments and put the savings toward other important goals such as buying a home, starting a business or saving for retirement.
Student loan debt continues to be a drag on consumers’ finances, as all too many borrowers have to set aside a big chunk of their income to repay their student loans each month. Not being able to save money, or make purchases or investments, can put student loan borrowers at a huge disadvantage over time and drag down our economy as a whole.
Consumers Union believes that affordable repayment options are a key part of any plan to make education more accessible and affordable. To learn more about our work on student loans and higher education, click here.
Are you repaying a student loan? Have you had trouble lowering your monthly payments? If so, tell us in the comments.