Tri-State students react to President's plan for student loan de - Cincinnati News, Weather, Sports from FOX19 NOW-WXIX

Tri-State students react to President's plan for student loan debt

CINCINNATI, OH (FOX19) -

President Obama announced new executive actions to lower student loan payments on Wednesday.  

Obama's plan will accelerate a measure passed by Congress that reduces the maximum required payment on student loans from 15% of discretionary income annually to 10%. He will put it into effect in 2012, instead of 2014.

In addition, the White House says the remaining debt would be forgiven after 20 years, instead of 25. He will also allow borrowers who have a loan from the Federal Family Education Loan Program and a direct loan from the government to consolidate them into one. The consolidated loan would carry an interest rate of up to a half percentage point less than before.

FOX19 heard from several students, who said as excited as they are about getting a degree in their chosen fields, the prospect of repaying the loans often necessary to earn the degree is a very daunting one, especially given the current economic conditions, and unemployment rate.

FOX19 Financial Expert, Nathan Bachrach, says student loan debt is second only to mortgages as the greatest amount of debt Americans owe, "36 million people have incurred a trillion dollars worth of debt and certainly with unemployment and the job situation the way it is, it's tougher than ever to repay those loans."

Bachrach says the President's plan will help some students, but not all.  And that it is more important than ever to consider the likely salary you will earn upon graduation when considering how much debt to take on.  For example, if you will graduate and earn $40,000 per year, your student loan debts should not exceed $40,000.  Bachrach admits, that's not advice some students will want to hear, as it might mean making tough decisions such as living at home instead of going away to school, and considering smaller, community colleges as an alternative to traditional 4 year colleges.  

Current law allows borrowers to limit their loan payments to 15% of their discretionary income and forgives any remaining debt after 25 years.  For more information, and to find out if you are eligible,

www.studentaid.ed.gov/ibr 

  • FOX19 HeadlinesMore>>

  • Trump leaves open possibility of bailing on meeting with Kim

    Trump leaves open possibility of bailing on meeting with Kim

    Thursday, April 19 2018 12:52 AM EDT2018-04-19 04:52:34 GMT
    Thursday, April 19 2018 9:58 AM EDT2018-04-19 13:58:26 GMT
    (AP Photo/Pablo Martinez Monsivais). President Donald Trump speaks to members of the media during a working lunch with Japanese Prime Minister Shinzo Abe, at Trump's private Mar-a-Lago club, Wednesday, April 18, 2018, in Palm Beach, Fla.(AP Photo/Pablo Martinez Monsivais). President Donald Trump speaks to members of the media during a working lunch with Japanese Prime Minister Shinzo Abe, at Trump's private Mar-a-Lago club, Wednesday, April 18, 2018, in Palm Beach, Fla.

    "If I think that if it's a meeting that is not going to be fruitful we're not going to go. If the meeting when I'm there is not fruitful I will respectfully leave the meeting," Trump told a news conference.

    Full Story >

    "If I think that if it's a meeting that is not going to be fruitful we're not going to go. If the meeting when I'm there is not fruitful I will respectfully leave the meeting," Trump told a news conference.

    Full Story >
  • Trump calls sketch released by Daniels 'a total con job'

    Trump calls sketch released by Daniels 'a total con job'

    Wednesday, April 18 2018 7:01 AM EDT2018-04-18 11:01:34 GMT
    Thursday, April 19 2018 9:58 AM EDT2018-04-19 13:58:08 GMT
    (Michael Avenatti via AP). This artist's drawing released by attorney Michael Avenatti, purports to show the man that the adult film actress Stormy Daniels says threatened her in a Las Vegas parking lot in 2011 to remain quiet about her affair with Pre...(Michael Avenatti via AP). This artist's drawing released by attorney Michael Avenatti, purports to show the man that the adult film actress Stormy Daniels says threatened her in a Las Vegas parking lot in 2011 to remain quiet about her affair with Pre...
    Trump says a porn actress is pulling "a total con job" by promoting an artist's sketch of a man she says threatened her to keep silent.Full Story >
    Trump says a porn actress is pulling "a total con job" by promoting an artist's sketch of a man she says threatened her to keep silent.Full Story >
  • Calif. governor says deal reached on National Guard mission

    Calif. governor says deal reached on National Guard mission

    Thursday, April 19 2018 3:01 AM EDT2018-04-19 07:01:58 GMT
    Thursday, April 19 2018 9:57 AM EDT2018-04-19 13:57:56 GMT
    (AP Photo/Denis Poroy, File). FILE - In this June 21, 2006 file photo, members of the California National Guard work next to the U.S.-Mexico border fence near the San Ysidro Port of Entry in San Diego. President Donald Trump slammed California Gov. Jer...(AP Photo/Denis Poroy, File). FILE - In this June 21, 2006 file photo, members of the California National Guard work next to the U.S.-Mexico border fence near the San Ysidro Port of Entry in San Diego. President Donald Trump slammed California Gov. Jer...

    Gov. Jerry Brown says he has reached agreement with the Trump administration to deploy up to 400 California National Guard troops to the border and elsewhere.

    Full Story >

    Gov. Jerry Brown says he has reached agreement with the Trump administration to deploy up to 400 California National Guard troops to the border and elsewhere.

    Full Story >
Powered by Frankly