Say what you want but Obama really is out to protect the little guy. The White House is saying that President Obama plans to announce Monday that he’s expanding an existing program which prevents borrowers from having to pay more than 10% of their monthly income. Find out what else Obama is planning for graduates after the jump!
Obama’s new executive steps will also include renegotiation opportunities with existing contracts with federal student loan services to encourage them to make it easier for borrowers to pay their debt and avoid defaulting on their loans.
On top of this, the president is going to Treasury and Education departments to request that they work with tax preparers in order to increase awareness about tuition tax credits and flexible repayment options.
Obama stated in his weekly radio and Internet address that to support these programs he plans on doing away with tax loopholes for millionaires. “Protect young people from crushing debt or protect tax breaks for millionaires,” the president told lawmakers.
A pretty noble act considering President Obama is one of those millionaires, with his net worth increasing 438% since he first ran for office being that he is now worth $7 million compared to the then $1.3 million.
With the average debt for the class of 2012 being at $29,400 and the unemployment rate for college graduates being about half what it is for high school graduates, Obama acknowledges the need to stress the importance of an education in a society which does all it can to discourage one from it.
“At a time when college has never been more important, it’s also never been more expensive,” said the president.
The Senate is expected to debate the legislation next week.
SOURCE: ABC News
