President Obama plans to enact regulations that would give close to five million federal direct student loan borrowers the chance to cap their student loan payments at 10% of their income.
President Obama also announced additional executive actions with the goal of assisting federal student loan borrowers. A special focus will be on borrowers who might be more likely to default on their student loans.
Says the White House in a written statement:
“Over the past three decades, the average tuition at a public four-year college has more than a tripled, while a typical family’s income has barely budged. As a result, more students than ever before are relying on student loans to pay for their college education. Today, 71 percent of students earning a bachelor’s degree graduate with debt, which averages $29,400. While most students are able to repay their loans, many feel burdened by debt, especially as they seek to start a family, buy a home, launch a business, or save for retirement.”
The White House also announced that on Tuesday, June 10, at 4:00 p.m. (EST), President Obama will hold his first Tumblr Q&A to answer questions about education, college affordability, and reducing student loan debt. Questions can be submitted at ObamaIRL.tumblr.com.