{"id":8233,"date":"2014-06-11T11:58:39","date_gmt":"2014-06-11T08:58:39","guid":{"rendered":"https:\/\/www.capitalfm.co.ke\/campus\/?p=8233"},"modified":"2015-09-30T13:58:09","modified_gmt":"2015-09-30T13:58:09","slug":"obama-orders-measures-to-ease-and-expand-student-loan-repayments","status":"publish","type":"post","link":"https:\/\/www.capitalfm.co.ke\/thesauce\/obama-orders-measures-to-ease-and-expand-student-loan-repayments\/","title":{"rendered":"Obama orders measures to ease and expand student loan repayments"},"content":{"rendered":"<p><a href=\"https:\/\/www.capitalfm.co.ke\/campus\/files\/2012\/06\/obama_left-handed.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-837\" alt=\"obama_left-handed\" src=\"https:\/\/www.capitalfm.co.ke\/campus\/files\/2012\/06\/obama_left-handed.jpg\" width=\"455\" height=\"333\" srcset=\"https:\/\/www.capitalfm.co.ke\/thesauce\/files\/2012\/06\/obama_left-handed.jpg 455w, https:\/\/www.capitalfm.co.ke\/thesauce\/files\/2012\/06\/obama_left-handed-300x219.jpg 300w\" sizes=\"auto, (max-width: 455px) 100vw, 455px\" \/><\/a><\/p>\n<p>President Barack Obama ordered the Department of Education to expand a program to ease student loan repayments for about 5 million more people.<\/p>\n<p>Under a 2010 \u201cPay as You Earn\u201d law, borrowers make repayments of no more than 10 percent of their monthly income. The benefit applies only to those who started borrowing after October 2007, shortly before the recession began. Obama\u2019s order would widen the eligibility to people who took out loans before October 2007. The new rules would take effect in December 2015.<\/p>\n<p>\u201cIn a 21st century economy, a higher education is the single best investment in yourself and your future,\u201d Obama said today at a White House event. Yet middle-income families are \u201cfeeling trapped,\u201d he said, because they increasingly can\u2019t afford ballooning tuition bills and don\u2019t qualify for programs intended to help poor students.<\/p>\n<p>Young voters gave Obama decisive majorities in his two presidential runs and Democrats are trying to get them to vote in the November congressional elections. With much of his agenda blocked by the Republican-controlled House, Obama has used executive actions to bypass Congress on initiatives that appeal to the party\u2019s base.<\/p>\n<p>Republican Senator Lamar Alexander of Tennessee called the executive action a \u201cpolitical stunt\u201d that will have only a small impact on the majority of people with student loans. He said Obama\u2019s efforts would be better spent on measures to increase employment.<\/p>\n<p>\u201cCollege graduates don\u2019t need a $1-a-day taxpayer subsidy to help pay off a $27,000 loan,\u201d Alexander said in a statement. \u201cThey need a good job.\u201d<\/p>\n<p>Education Secretary Duncan told reporters at the White House that the administration doesn\u2019t know how much the expanded payment cap will cost. \u201cWe\u2019ll figure that out on the back end,\u201d he said.<\/p>\n<p><strong>Student Debt<\/strong><\/p>\n<p>Outstanding education debt is at a record $1.2 trillion, which includes loans taken out by students and their parents in federal and private programs. About 85 percent of that is government-backed debt.<\/p>\n<p>Graduates of the class of 2012 who took loans for bachelors\u2019 degrees owed an average of $29,500, according to The Institute for College Access &amp; Success, an Oakland, California- based nonprofit group. About 71 percent of those college seniors borrowed.<\/p>\n<p>\u201cThis is a country where opportunity should be available for anybody,\u201d Obama said. \u201cHigher education opens the door.\u201d<\/p>\n<p>To augment Obama\u2019s order, the Education Department is renegotiating contracts with loan servicers, urging them to try to stick with borrowers to avoid defaulting on loans.<\/p>\n<p><strong>Senate Bill<\/strong><\/p>\n<p>The president also endorsed a bill in the Senate sponsored by Elizabeth Warren, a Massachusetts Democrat, that would permit students to refinance loans to take advantage of lower rates. He would pay for the loss of federal revenue by imposing new taxes on wealthy individuals.<\/p>\n<p>Obama said it \u201cwould be scandalous\u201d for Congress to reject aiding students in order to keep tax loopholes for the wealthy. \u201cThis should be a no-brainer,\u201d he said.<\/p>\n<p>He said voters should look at \u201cwho is it that\u2019s fighting for you and your kids and who is not.\u201d<\/p>\n<p>The Republican leader of the Senate opposes Warren\u2019s legislation.<\/p>\n<p>\u201cThis bill doesn\u2019t 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,\u201d Senate Minority Leader Mitch McConnell of Kentucky said in a statement.<\/p>\n<p>The legislation is primarily designed to be a divisive issue in the midterm elections, Guggenheim Securities LLC said in a note to clients today.<\/p>\n<p>\u201cThe legislation is unlikely to move in the Senate and has almost no chance in the House, though it\u2019s an anchor of the Democratic midterm playbook,\u201d Guggenheim said.<\/p>\n<p>Tomorrow, Obama will take part in a live question-and- answer session on student debt on the blogging site Tumblr Inc., the White House statement said.<\/p>\n<p><em><strong>Bloomberg<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Barack Obama ordered the Department of Education to expand a program to ease student loan repayments for about 5 million more people. Under a 2010 \u201cPay as You Earn\u201d law, borrowers make repayments of no more than 10 percent of their monthly income. The benefit applies only to those who started borrowing after October [&hellip;]<\/p>\n","protected":false},"author":13763,"featured_media":837,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[70,681,493,50],"class_list":["post-8233","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-helb","tag-loan","tag-obama","tag-student"],"better_featured_image":{"id":837,"alt_text":"","caption":"","description":"","media_type":"image","media_details":{"width":455,"height":333,"file":"2012\/06\/obama_left-handed.jpg","sizes":{"thumbnail":{"file":"obama_left-handed-150x150.jpg","width":150,"height":150,"mime-type":"image\/jpeg","source_url":"https:\/\/www.capitalfm.co.ke\/thesauce\/files\/2012\/06\/obama_left-handed-150x150.jpg"},"medium":{"file":"obama_left-handed-300x219.jpg","width":300,"height":219,"mime-type":"image\/jpeg","source_url":"https:\/\/www.capitalfm.co.ke\/thesauce\/files\/2012\/06\/obama_left-handed-300x219.jpg"},"tie-small":{"file":"obama_left-handed-55x55.jpg","width":55,"height":55,"mime-type":"image\/jpeg","source_url":"https:\/\/www.capitalfm.co.ke\/thesauce\/files\/2012\/06\/obama_left-handed-55x55.jpg"},"tie-medium":{"file":"obama_left-handed-272x125.jpg","width":272,"height":125,"mime-type":"image\/jpeg","source_url":"https:\/\/www.capitalfm.co.ke\/thesauce\/files\/2012\/06\/obama_left-handed-272x125.jpg"},"tie-large":{"file":"obama_left-handed-290x195.jpg","width":290,"height":195,"mime-type":"image\/jpeg","source_url":"https:\/\/www.capitalfm.co.ke\/thesauce\/files\/2012\/06\/obama_left-handed-290x195.jpg"},"slider":{"file":"obama_left-handed-455x330.jpg","width":455,"height":330,"mime-type":"image\/jpeg","source_url":"https:\/\/www.capitalfm.co.ke\/thesauce\/files\/2012\/06\/obama_left-handed-455x330.jpg"}},"image_meta":{"aperture":0,"credit":"","camera":"","caption":"","created_timestamp":0,"copyright":"","focal_length":0,"iso":0,"shutter_speed":0,"title":"","resized_images":["150x100","100x100"]}},"post":836,"source_url":"https:\/\/www.capitalfm.co.ke\/thesauce\/files\/2012\/06\/obama_left-handed.jpg"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Obama orders measures to ease and expand student loan repayments - The Sauce<\/title>\n<meta name=\"description\" content=\"President Barack Obama ordered the Department of Education to expand a program to ease student loan repayments for about 5 million more people. 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