The NY Times reports that President Obama is rolling out new programs to lower student loan monthly payments. The program is an attempt to relieve new graduates and those graduates looking for employment relief.
Via NY Times:
At a press briefing Tuesday afternoon, Melody Barnes, director of the Domestic Policy Council, said the president would use his executive authority to expand the existing income-based repayment program with a “Pay as You Earn” option that would allow graduates to pay 10 percent of their discretionary income for 20 years and have the rest of their federal student loan debt forgiven.
Currently, students in the program pay 15 percent of their discretionary income for 25 years prior to forgiveness.
It is estimated that the program could help 6 million borrowers. While the program does not address every student trying to make ends meet, it should help.