According to a Time magazine article, President Obama told students while signing the bill:
“I didn’t stand with the banks and the financial industries in this fight — that’s not why I came to Washington — and neither did any of the members of Congress who are here today,” Obama said to a supportive crowd at Northern Virginia Community College. “We stood with you. We stood with America’s students.”
What is he talking about? If you haven’t watched, read or surfed the news lately you may not know, heck even if you’ve watched every single minute of coverage you may not know– it hasn’t been talked about much, and students need to know the truth.
The Student Loan Initiative/Legislation takes private lenders out of the Federal loan program–basically you don’t have to pick a lender anymore when you apply for a Federal loan, the government is automatically your lender. Is this a good thing? That’s for you to decide.
Another positive for students is that loan re-payments will only be 10% of your income, so if you don’t make a ton right out of college you won’t have to pay a ton (or quite frankly, all of your pay) back.
This only affects the Federal student loans and Pell Grants, so your private loans (at least for right now) will still stay with whatever bank you chose.
According to President Obama, again from the Time article, the change will save over $60 billion in the next ten years–money that will be used to boost loans and community colleges.
Do you think this legislation is positive? Sound off below!