My response from Obama on Student loans: Dear Friend: Thank you for writing. I have heard from many Americans about expanding access to higher education and managing student loan debt, and I appreciate your perspective. The jobs of tomorrow are increasingly going to those who have more than a high school degree, and we know that individuals with college degrees earn about twice as much as those with only a high school diploma. That means we need to do everything we can to put higher education—whether from a technical institution, community college, 2-year college, or 4-year institution—within reach for every American. Yet, while higher education has never been more important, it has also never been more expensive. Tuition rates have more than doubled over the last two decades, and too many graduates are faced with staggering debt upon leaving school. An economy built to last demands we do everything we can to bring down the cost of college, because higher education should not be a luxury; it is an economic imperative that every family in America should be able to afford. My Administration has already more than doubled the total amount of funding available for Pell Grants, and we are helping 600,000 veterans go back to school with the Post-9/11 GI Bill. I have extended the $2,500 per year American Opportunity Tax Credit for American families pursuing higher education, and I am working to double the number of work-study jobs over the next 5 years to better assist students who are working their way through school. Because we won the fight to end taxpayer subsidies to banks that process student loans, tens of billions of dollars are now going directly to students and families in the form of more grants and better options and resources for student loan borrowers. No American should suffer financially because he or she chose to go to college. That is why I have taken several steps to make it easier for borrowers to repay their Federal student loans. My Administration has implemented the Pay As You Earn student loan repayment plan, which allows students to cap their monthly payments at 10 percent of their income and have their remaining student loan debt forgiven after 20 years of responsible repayment, or after 10 years for those in public service. To help borrowers struggling with their loan payments, we have made it even easier for students to apply for and take advantage of this new repayment option. Increasing Federal aid is part of the solution, but states and colleges also share responsibility for reining in costs. Because State budget cuts have been one of the largest factors in tuition increases at public colleges over the past several years, I have proposed an innovative Race to the Top competition for college affordability and completion. This will challenge states to enact systematic reforms to reduce costs, promote completion, and increase efficiencies in higher education. I have also called on Congress to consider value, affordability, and student outcomes in making determinations about which colleges and universities receive access to Federal student aid, and to reward schools that are keeping prices more affordable for students by changing how campus-based aid is distributed. I have proposed a First in the World competition to invest in colleges and nonprofits working to develop, validate, or scale up innovative and effective strategies designed to boost productivity, enhance quality, and support students as they progress toward their college degrees. Through these and other efforts, we will graduate more students and continue working toward our goal of once again leading the world in college completion by the year 2020. American families also need better tools to help them make informed decisions about college costs and financial aid. My Administration has developed new resources to help families make better financial decisions, including how to plan and pay for college, establish and manage a budget while in school, and understand their loan debt, their options for repayment, and its impact on their everyday lives post-college. We launched an interactive College Scorecard for all degree-granting institutions, providing essential information about college costs and outcomes in an easy-to-read format to help students and families choose a college that is the right fit for them. Additionally, we have created a Financial Aid Shopping Sheet to make it easier for families to compare aid packages between schools so they can make the best decision possible on where to invest in higher education. To learn more about these resources, I encourage you to visit WhiteHouse.gov/issues/education/higher-education or WhiteHouse.gov/Scorecard. Thank you, again, for writing. Now more than ever, our success as a Nation depends on an educated workforce and an engaged citizenry. To find resources and assistance in financing education and repaying Federal student loans, call the Federal Student Aid Information Center at 1-800-433-3243 or visit StudentAid.gov. For more information about student debt repayment options or to explore “Know Before You Owe” resources, please visit ConsumerFinance.gov/Students. Information about defaulted student loans is available from the Department of Education at 1-800-621-3115. Sincerely, Barack Obama This Week at the White House • What the Affordable Care Act Really Means for Job Growth • A One-Stop Shop on the Health Care Law for Businesses Big and Small • Weekly Address: Securing a Better Bargain for the Middle Class • West Wing Week 8/2/2013: "Let Us Be Awed by Their Shining Deeds" • Photo of the Day Stay Connected Facebook Twitter YouTube Flickr iTunes
Posted on: Fri, 09 Aug 2013 20:14:03 +0000
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