Obama unveils new student loan payment rules

| Print |  Email
The Latest
Wednesday, October 26, 2011

President Barack Obama announced a plan to let Americans consolidate and reduce interest rates on their student loans.

The new rules that take effect next year include provisions will allow students to roll different loans into one federally-backed package with a lower interest rate; Obama said up to 1.6 million students could see debt payments go down by hundreds of dollars a month as they pursue college educations.
"It's never been more important, but, let's face it, it's never been more expensive," Obama said. "Our economy needs it right now and your future can use a boost right now."
As he has on other items this week, Obama said he is issuing executive orders because congressional Republicans are blocking his proposed $447 billion jobs plan.
"We can't wait for Congress to do its job," Obama said. "Where they won't act, we will."
The speech wrapped up Obama's three day swing through the West, as he spoke at campaign fundraisers and issued a flurry of new executive orders while bashing Congress.

Read The Latest from USA Today.

 

 

Comments   

 
Lisa
0 #1 Unintended Consequences and other Roads to HellLisa 2011-10-26 11:58:18
This sounds nice but like many well intentioned ideas, there are unintended consequences. There has been a lot of information that supports the reality that the more "student aid" available the higher tuition rates. The increase in college expenses have greatly outpaced the increases in other costs. The higher the rates, the more that must be paid and/or borrowed. There is talk of tuition and student loans being the next "bubble" to create economic havoc.

Further student loans seem to be the only loans that one can obtain without showing ANY ability to repay them. Another recipe for disaster. Borrow $1000 for furniture or electronics and you will have to prove you can pay back the loan. Borrow ten or a hundred times that amount for college and there isn't any accountability. If nothing else, students should receive counselling on how much their intended course of study is expected to return in the form of future gainful employment. Spending a hundred grand for some obscure or impractical degree and trying to pay it back working at Starbucks is not a very good idea. I don't see that many engineering or accounting graduates wailing they can't pay back their loans. However getting a master's in Gender Studies is unlikely to be worth the investment from an economic point of view.

Obama's latest plan just sounds like another vote buying concept. Trying desperately to retain the youth vote that helped get him in office he's offering goodies instead of a healthy economy. I hope this latest scheme gets all the support it deserves.
Quote | Report to administrator
 

More Articles

Photo Diary: Forest Grove Farmers Market

The Latest
Thursday, May 14, 2015
IMG 8469BY JASON E. KAPLAN | STAFF PHOTOGRAPHER

There are more than 160 farmers markets in Oregon, contributing an estimated $50 million in sales, according to the Oregon Farmers Markets Association. We checked in on the Forest Grove market, which for several years has brought local produce and food vendors to Main Street in the center of town.


Read more...

Department of Self-Promotion

Linda Baker
Wednesday, June 17, 2015

061715-awards1Oregon Business wins journalism awards.


Read more...

6 key things to know about summer baseball in Oregon

The Latest
Friday, June 05, 2015
basedthumbBY JACOB PALMER | DIGITAL NEWS EDITOR

As temperatures in Oregon creep into the 90s this weekend, Oregonians' thoughts are turning to — summer baseball.


Read more...

Efficiency Boost

June 2015
Friday, May 22, 2015
BY JOE CORTRIGHT

How conservation stimulates the local economy.


Read more...

Urban renewer

Linda Baker
Wednesday, June 24, 2015
UnknownBY LINDA BAKER   

One year after he was appointed chair of the Portland Development Commission, Tom Kelly talks about PDC's longevity, Neil Kelly's comeback and his new role as Portlandia's landlord.


Read more...

Undersea Power

June 2015
Friday, May 22, 2015
BY JACOB PALMER

Mike Morrow and Mike Delos-Reyes first came up with the idea of an ocean power device 23 years ago, when they were students at Oregon State University. They realized a long-held vision last summer, when their startup, M3 Wave, successfully launched the first ocean power device that works underwater.


Read more...

Change at the pump?

The Latest
Tuesday, May 26, 2015
001thumbBY JASON E. KAPLAN | STAFF PHOTOGRAPHER

New Jersey and Oregon are the only two states in the U.S. that ban self serve gas stations. But these two holdouts may be ready to give up the game. New Jersey is considering legislation that would lift the state's ban on pumping your own gas. Oregon is considering smaller scale changes.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS