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Howard Ain, Troubleshooter: Student loan changes
CINCINNATI (Howard Ain) -- Saying no hard-working young person in America should be priced out of a higher education, President Obama changed the law regarding student loans.
In signing a presidential memorandum, President Obama said the change could help an additional 5 million borrowers of federal student loans. An existing repayment plan lets borrowers pay no more than 10 percent of their monthly income in loan repayments, but that's only for those who took out a loan after October, 2007.
Monday, Obama signed to expand the program so its fully retroactive to all beginning in December, 2015. Here's the problem, at a time when higher education's never been more important, it's also never been more expensive. Over the last three decades the average tuition at a public university has more than tripled.
At the same time a typical family's income has gone up just 16 percent. This change only applies to those with federal direct student loans, not loans through banks. Senate Democrats have proposed legislation that would allow millions of Americans to refinance both federal and private undergraduate student loans at lower interest rates. But that bill is unlikely to overcome Republican opposition as being too costly for the government.
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