Student loans have been a target for quite some time in the recent economic troubles; many lawmakers and economists have been working to find ways to reduce the burden put on students by student loans and until today there was no set plan. Fortunately experts believe that the plan announced today by President Obama will actually help reduce the stress and possibly make it easier for many students to pay back their loans.
This is great news for the millions of American’s with student loans, currently student loans are one of the largest many people have so there is clearly some benefit in helping them. President Obama’s plan is based entirely on income and earnings so that students that are struggling to find a paying job will not be forced to make huge loan repayments; this means that only those who actually get the jobs they were hoping for will be making full loan repayments. Obviously this means many people will not be paying as quickly on their student loans but this does not mean any of the loan will actually be forgiven.
President Obama makes it quite clear that the loan plan is simply a way to help those students that are unable to make the loan payments; any one with student loans that is making enough to pay full loan repayments will be forced to do so. No word on when exactly congress will begin to tackle the plan but experts are hopeful that it will be approved.