Changes to student loans are coming in the near future.
President Obama spoke at Georgia Tech on Tuesday, March 10, explaining to the nearly 10,000 students that he wants to make the process of repaying student loans easier.
Obama also signed a “student aid bill of rights” that explained the different policy changes and strategies he had for helping students pay back their debt once they finished their college career.
Whitehouse.gov explained the four point bill of rights.
“I. Every student deserves access to a quality, affordable education at a college that’s cutting costs and increasing learning.
II. Every student should be able to access the resources needed to pay for college.
III. Every borrower has the right to an affordable repayment plan.
IV. And every borrower has the right to quality customer service, reliable information, and fair treatment, even if they struggle to repay their loans.”
“We’re going to require that the businesses that service your loans provide clear information about how much you owe, what your options are for repaying it, and if you’re falling behind, help you get back in good standing with reasonable fees on a reasonable timeline,” Obama said, according to Philly.com.
“We’re going to take a hard look at whether we need new laws to strengthen protections for all borrowers, wherever you get your loans from.”
According to Voanews.com, “more than 70 percent of U.S. students who graduate with a bachelor’s degree leave with debt, which averages $28,400.”
Many graduates do not know the exact amount of debt that they have accrued and are unsure of how to go about repaying their loans. One of the policies Obama wants to implement is having clear and concise explanations on what company is servicing their loans and how the students should set up their monthly payments or other arrangements.
“Repayment rates improve when servicers work well and work directly with borrowers, helping them understand the terms of their loans,” Sarah Bloom Raskin, deputy secretary of the Treasury Department, explained on a conference call.
Obama has directed his Education Department to come up with a system that oversees and addresses the complaints from students. The system should be functional by July, 2016.
The laws regarding student loans and bankruptcy may also be changing. Obama has reportedly given the Treasury and Education departments and the Consumer Financial Protection Bureau until October 1, 2015, to report to him on whether or not they feel the laws concerning student loans should be amended.
Do you think the Student Aid Bill of Rights will help college graduates? Leave your comments below.
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