Obama's relief plan: how it affects student debt
Adam Woods
Issue date: 2/5/10 Section: Academics
College is a time to learn - a time for students to stretch their minds and move toward a career path. But for many of us, college also means racking up loads of debt in student loans.
Is there any hope of financial freedom for us? In President Obama's State of the Union speech last week, he proposed several reforms that might bring relief.
"To make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans," Obama said. "Instead, let's take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants."
The president added that all student loan debt would be forgiven after 20 years or 10 years for those choosing to work in public service.
Milligan students had various responses to the president's proposal.
"I think Obama's proposal concerning student loans is ideal," said junior Darcee Kubisiak. "It creates some major incentive for students who want to go to college but cannot afford it."
Other students were more skeptical.
"I'm not exactly sure what a lot of that will mean for the economy," said sophomore business major Brittany Camp. "The way I see it, allowing forgiveness for students' debt means there will still be a shortage of money somewhere - either the banks or the colleges themselves."
According to WhiteHouse.gov, the proposed budget would move federal funds for student loans so that, instead of going towards "wasteful subsidies to banks," the funds would go directly to students "on an efficient basis that uses private and nonprofit companies to deliver services."
Pell Grants, funds from Congress based on financial need, would also be increased.
Sophomore Benjamin Sharp was encouraged by the prospects, but was not convinced that this new plan will free him from all school-related financial burdens.
"I would welcome any kind of help that President Obama or the government would provide in making quality education affordable, but after this past year and that speech I am not getting my hopes up."
Is there any hope of financial freedom for us? In President Obama's State of the Union speech last week, he proposed several reforms that might bring relief.
"To make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans," Obama said. "Instead, let's take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants."
The president added that all student loan debt would be forgiven after 20 years or 10 years for those choosing to work in public service.
Milligan students had various responses to the president's proposal.
"I think Obama's proposal concerning student loans is ideal," said junior Darcee Kubisiak. "It creates some major incentive for students who want to go to college but cannot afford it."
Other students were more skeptical.
"I'm not exactly sure what a lot of that will mean for the economy," said sophomore business major Brittany Camp. "The way I see it, allowing forgiveness for students' debt means there will still be a shortage of money somewhere - either the banks or the colleges themselves."
According to WhiteHouse.gov, the proposed budget would move federal funds for student loans so that, instead of going towards "wasteful subsidies to banks," the funds would go directly to students "on an efficient basis that uses private and nonprofit companies to deliver services."
Pell Grants, funds from Congress based on financial need, would also be increased.
Sophomore Benjamin Sharp was encouraged by the prospects, but was not convinced that this new plan will free him from all school-related financial burdens.
"I would welcome any kind of help that President Obama or the government would provide in making quality education affordable, but after this past year and that speech I am not getting my hopes up."
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