President Obama announced last week that he is devising a plan to provide student loan relief to college graduates and students starting in 2012. By acknowledging that the No. 1 source of household debt aside for mortgages is student loans Obama plans to use his “executive authority” to provide load relief. Obama said it’s never been more important to get a college education, but it’s also never been more expensive.
“A shorter repayment period coupled with lower interest rates and lower payments could save students a lot of money not just in the long run, but each month while in repayment,” said Ben Flikeid, Director of Financial Aid. “These savings could help students use their income to purchase houses and provide for their families.”
“The fact that you’re going to college, the fact that you’re making an investment in your future tells me that you share my faith in the American future,” Obama said. “I want America to have the most highly skilled workers doing the most advanced work. I want us to win the future.”
Obama’s planned announced last Wednesday, October 26 says that graduates and students that have both government and government backed loans will be able to consolidate them into one, according to the Wall Street Journal.
“Lowering payments and interest rates and making the payments more affordable
could also help students stay out of default,” said Ben Flikeid. ”The Department of Education needs those loans to be repaid so the money can get back into the education system. Making the payments more affordable will help the wheel to keep turning so
future students can borrow Stafford loans.
“I need you communicating to Congress, I need you to get the word out,” Obama said at the University of Colorado, Denver. “Tweet `em. They’re all tweeting all over the place, you tweet `em back.”