The webmaster on the Obama Student Loan website today announced an update which affects students across the country.
Online PR News – 11-July-2012 – Albuquerque, New Mexico – The webmaster on the Obama Student Loan website today announced an update which affects students across the country. The proposed changes in the program would give millions of graduates and students who are already struggling to pay back their student loans some relief both now and several years into the future.
President Obama used his executive authority in October of 2011 to launch a short-term initiative which would allow borrowers to consolidate multiple student loans into a direct government loan. The Obama Student Loan program would also enable borrowers to knock off as much as a half percentage point from their interest rate in the process.
The program has attracted more than 400,000 borrowers with loans totaling $10.6 billion, Education Department officials said. In October the White House predicted that 5.8 million borrowers could be helped by the program, but almost half a million is an impressive response from a segment of the population which is hard to reach.
"It's a fairly large and disbursed population, and how you get the information into their hands is always a challenge," said Terry Hartle, senior vice president of the American Council on Education.
The Obama Student Loan program made its way into the budget on the heels of a 27-month bill to fund highway projects. The House voted 373 to 52 to approve the $120 billion package. The Senate also approved the $120 billion package shortly after congress with a 74-19 vote. The legislation now heads to the White House for the president's signature which will be a formality.
The program instantly prevented rates from doubling from 3.4 percent to 6.8 percent on July 1, 2012 for the students who are now enrolled. The student debt issue is only one of many that President Obama hopes will help him get re-elected in November.