President Obama announced critical changes to federal loans for college students. Under his new plan, recent grads are responsible for only paying 10% of their income to federal student loans for 20 years and anything left will be forgiven. This is fantastic news! I still have a ton of private loans, but once I take out loans for law school next year I will have an easier time paying them off. It also means I don’t just have to look at salary when choosing a job.
Democracy works. Students have been yelling at the Obama Administration to pay attention to the rising costs of higher education and the crushing debt and unemployment rates that faces them after graduation. Recently, student loan debt has surpassed credit card debt.
The price of attending the average public university rose 5.4% for in-state students to $21,447 this fall, according to a report released Wednesday by the College Board. The cost for one year at a typical private college rose 4.3% to $42,224.
The average student loan debt for the graduating class of 2009 at four-year nonprofit colleges was $24,000, according to the Institute for College Access & Success.
While college costs are rising, employment prospects for new college graduates are dimming. In 2010, the unemployment rate for college graduates age 24 and younger rose to 9.4%, the highest since the Labor Department began keeping records in 1985.
Thank you Obama!