Bye Bye Loans

For many students the horror of paying back loans after graduation is something that we tend to not want to deal with until we receive the bill in the mail or phone call from a representative at the bank. The years of struggling  to pay back all the money that students  have borrowed to further their education can be stressful, so hearing from the president himself that students' loans may be reduced or eliminated; the students listening  intently to hear their President speak erupted with jubilant applause. Last week the government released a plan that would reduce the amount of loans for millions of young adults in America. During  President Obama's  speech to The University of Colorado, Denver he spoke about his plans, and personal experience regarding the loan cut. He spoke on how he and his wife combined owed about 120,000 and how prior to his election he could relate to where the students were.

At the event he stated "I've been in your shoes. We did not come from a wealthy family," Obama said to the audience. " The presidents support of higher education, and his experience trying pursue his degrees allows him to be able to relate to the students who are degree seeking.

According to an article on WRAL Obama's plan consist of "reducing the maximum required payment on student loans from 15 percent of discretionary income annually to 10 percent. "  This plan would go into effect in 2012 versus 2014. Experts say that this would affect almost 1.6 million borrowers instantly. For many students this news came as a relief, and we are pretty sure that every student and parent supports the approval of this procedure.