Student Loan Reform Law Signed by Obama
Ever since Obama became the President of US, he has worked its way in focusing mostly in the education and health care system. In his recent signing of the Health Care Reform and Education Reconciliation Act, he has proved once again that the government is taking actions for the betterment of all students by making student loans affordable.
Accordingly, the student loan program, as part of the Health Care Reform and Education Reconciliation Act, changes the student loan system and makes the federal government the primary distributor of these student loans. It reinvests those $68 billion in savings toward making college more affordable, as well as reducing the deficit.
Here are some of the highlights of the Student Loan Reform Law will to help students and families have a more affordable college education:
- Double funding for Pell Grants since Obama took office, to make sure that all eligible students receive an award, and that student loan grants keep pace with the rising cost of college.
- Invest in community colleges to help an additional 5 million Americans earn degrees and certificates over the next decade.
- Increase support for historically black colleges and universities and minority serving-institutions, which have been particularly hard hit by some of the challenges facing all universities, and account for nearly sixty percent of the 4.7 million minority student undergraduates in our country.
- Ease loan repayment by capping student loan payments at 10 percent of a graduate’s discretionary income, with any remaining balance forgiven after 20 years. And those students who go into public service after graduation can have their student loans forgiven after 10 years.
- End government subsidies given to financial institutions that make student loans, switching to direct loans. This saves nearly $68 billion for college affordability.