President Obama announced in early June 2014 that he would seek to relieve student loan debt burdens in various ways. But the change that received the most attention was to seek a change in regulatlons, to expand the "Pay As You Earn" repayment option to all borrowers, when at the present time, it is restricted mostly to recent borrowers.
Under Pay As You Earn, a borrower that cannot afford to repay their federal student loan in a normal manner, can choose to repay based on their income - 10% of their disposable income, versus 15% under the current "income-based repayment" or IBR option. Also, a Pay As You Earn repayer must only pay the 10% for 20 years, versus 25 years under IBR, with any remaining balance due forgiven.
This change is not in effect yet. The President stated that he hopes to have the Dept of Education have these changes in place by December 2015. And this means that since some borrowers won't have to pay as much back, we taxpayers will be "footing more of the bill."
Do you think that is right? Do you think it was right for the President to reduce the amount that some federal student loan borrowers have to pay back, shifting more of the burden to taxpayers? Or do you think that it's about time that student borrowers received some meaningful relief?