Rancho Cucamonga, CA (PRWEB) April 29, 2013
Student loan debt surpassed credit card debt for the first time this past year, and borrowers now collectively owe more than one trillion dollars. To alleviate the crisis, the Obama and Bush administrations passed legislation that tried to give borrowers more repayment options.
Loans.org spoke with Andrew Schrage, CEO of Money Crashers, about the evolution of student loan law under these two presidents. The resulting article found that efforts made by the government to lighten the burden for borrowers have been hit and miss.
President Obama’s most recent proposal to manage student loan debt would be to make interest rates adjustable. In his proposed budget for fiscal year 2014, the President controversially suggested tying interest rates to market values, which are currently near historic lows.
During his administration, the current president has also reduced the number of years a borrower must repay a loan before it is forgiven, and allowed federal loan borrowers to cap their repayments at 10 percent of their discretionary income.
However, one of the best student loan repayment programs was the work of a Republican. Former President George W. Bush signed the Income Based Repayment (IBR) program into law. The College Access and Reduction Act, which moved funding from student loans to grants, was also passed under Bush’s administration.
Despite efforts from both presidents, the student loan default rate is the highest it has been in decades.
For the full article, please visit http://loans.org/student/articles/how-borrowers-fared-obama-administration
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