Lately I’ve been getting a little worried about funding for my future education that possibly takes me to an out of state university, as I should finish my pre-requisites this summer. I saw a news story that helped me stay positive about paying back student loans when the time comes. Obama introduced a plan that will accelerate a Congressional measure that reduces maximum payments on student loans from 15 percent to 10 percent. The plan will go into affect in 2012, 2 years earlier than the previously proposed plan. Also, the new plan changed the amount of time in which loans will be cleared from 25 years to 20 years. These changes affect a huge amount of people and will help students in their initial journey from college into the real world. The savings from lower monthly payments will help graduates better budget for things like mortgages and savings for future children. In an economy like todays, any relief is helpful.
Student loans are a huge contributor to debt in the U.S. According to an article on Student Aid Figures, “86.3% [of students] borrowed to pay for their education and the average cumulative debt was $24,651.” In some cases, students accrue a much higher debt than this figure. Most loans are to be paid off 6 months following graduation. Many graduates are having trouble finding employment after graduation. These problems are few of many that are making life after graduation difficult. With all of these factors adding up students are often overwhelmed. Taking steps and producing plans like Obama’s helps to improve and alleviate stress for graduates.
Passing this type of plan not only helps students and graduates, but it also helps Obama as well. Gaining support from young Americans through plans like these help his chances for re-election. As a student I have benefited from previous education plans that Obama has passed, including his tax return policy for receiving extra sums for enrollment in college courses. Also, through his policies and agendas, it has made financial aid easier to deal with and increased funding compared to previous years. Although it is appreciated, there is still a long way to go to make the education process an easy process for all.
