President Obama taking executive action to unveil student debt plan
I can hear the sounds of Republican panels now, “Another Executive Order from President Obama, more like Dictator Hussein Obama”.
President Obama signed a memorandum today Monday June 9 that would allow more Americans to limit their student loan payments at 10% of their income. This new action will expand on President Obama’s previous “Pay as You Earn” program, which was first launched in October 2011,this means that it would making it available any individuals who took out student loans before October 2007.
If you opt into the program your student loan payments will be set according to a sliding scale based on income. The remaining balance is forgiven after 20 years; those working in public service have any remaining balance forgiven after 10 years.
President Obama’s original “Pay as You Earn” program was only available to those who took out loans after October 2007 and continued to borrow after October 2011. The White House estimates that the program’s expansion will offer student debt relief to an estimated 5 million Americans.
Obama, who is signing the memo on Monday afternoon, will also take other executive action to help Americans pay for college. The administration plans to renegotiate its contracts with federal student loan service’s to encourage them to help borrowers stay current on their payments and avoid delinquency or default.
As with anything this president does the on storm of some Republicans have already begun attacking the president’s actions for doing little to solve the underlying problem.
“Nothing the president announced today will make the cost of higher education more affordable; nothing the president promised will help graduates find the jobs and opportunities they desperately need,” Rep. John Kline, chair of the House Education and the Workforce Committee, said in a statement. As always the criticism is never far away and any alternative ideas are never present.
The president also endorsed a Senate Democratic bill authored by Sen. Elizabeth Warren that would allow borrowers to refinance their student loans, including those issued by private banks. It would be paid for by the so-called “Buffett Rule” which would raise taxes on millionaires.
Not surprising to anyone Senate Republicans have killed previously attempts to pass the “Buffett Rule” and have also attacked Warren’s proposal on other grounds. “This bill doesn’t make college more affordable, reduce the amount of money students will have to borrow, or do anything about the lack of jobs grads face in the Obama economy,” Senate Majority Leader Mitch McConnell said in a statement.
It’s so easy for
"Muppet Face" Mitch McConnell to stand against today’s college students when he payed less than two thousand dollars per year for his time at the University of Louisville in 1964. According to CollegeCalc whose school data is provided by the U.S. Department of Education the price for University of Louisville in 1987 was $1,340 In State and $3,820 for out of State Tuition and Fees. Compare that to that of a incoming 2014 student will pay an estimate of $18,232.00 in annual costs.
What is it that bothers today’s Republican Leaders the most? Is it the fact that larger percentages of minorities are enrolling in Colleges and Universities and attaining higher degrees or is it that those same minorities are overwhelmingly voting more Liberal and Democrat. Maybe it’s the fact that as President Jefferson stated: “Whenever the people are well informed, they can be trusted with their own government; that whenever things get so far wrong as to attract their notice, they may be relied on to set them to rights.”