Americans now owe more money on student loans than credit cards. Obama’s executive order will cap loan payments for millions of people at 10 percent of monthly income – a so-called “Pay As You Earn” model.
President Obama: “So we’re announcing steps that will open up “Pay As You Earn” to nearly 5 million more Americans. That’s the first action we’re taking today. The second action is to renegotiate contracts with private companies like Sallie Mae that service our student loans. And we’re going to make it clear that these companies are in the business of helping students, not just collecting payments, and they owe young people the customer service, and support, and financial flexibility that they deserve.”
Such a hard choice to either go to college and take on a debt you will more than likely be paying back for the rest of your life, or take a chance and go straight into the work force – hopefully to climb the ladder of success.
College is not for everyone, I chose not to go but my sister did. She has completed a bachelor’s degree with one year completed of a master’s program at USC and she is already in debt around $60,000.00
I did not want that debt, but for those who want a higher education via a degree have the hard choice of going into debt at the cost of what should be free to them.
Instead of our government making education free – paid by tax dollars. The education system is a privatized money making machine. Instead of giving breaks to student, the United States government gives tax breaks to major corporations.
How backwards and how dumb is this government? – If you have a society of educated working people, the taxes they pay into helps the economy – not break it.