President Obama's Plan
http://www.barackobama.com/education-calculator
The President's plan to help student debt is to start a program called "Pay as you earn." This program limits payments to 10% of a person's annual income. As long as students pay there monthly payments on time they will not have to worry about paying for more than they can handle.
In 2012 President Obama has said many times that if colleges don't start trying to contain their cost, and stop relying on student's tuition to pay for their needs, he won't give them federal money. you can see more of President Obama plan here.
In 2012 President Obama has said many times that if colleges don't start trying to contain their cost, and stop relying on student's tuition to pay for their needs, he won't give them federal money. you can see more of President Obama plan here.
Mitt Romney's Plan
http://www.flickr.com/photos/bryan_durel_1/8124595345/
Mitt Romney's plan on the student debt crisis is to make financial aid plans simpler and stronger. He also wants more involvement from the private sector. Mitt Romney was asked at a question by a college student at a campaign stop in manchester N.H. He asked what Mitt Romney was going to do about the student debt crisis, his response was, "It is very tempting as a politician to say, 'You know what, I will just give you some money. The government is just going to give you some money and pay back you loans for you,'" Romney continued to say. "I am not going to you something that is not the truth, because you know, that is just taking money from your other pocket and giving it to the other pocket."
What the Government is doing to help
There are a few government programs that help students pay for their student loans. One of these is called Income-based repayment (IBR)which allows people to pay off these debts with a percentage of their income and not on the usual ten year plan. The usual monthly payments is around 15% of a persons income. The to this is that it would usually take more like 25 years to pay off instead of 10 which means you would have to pay more interest, 15 years worth of interest. Also if you make 120 on time payments you can qualify for public service loan forgiveness.
Another government program that is very similar to IBR is called the Income-cantingent repayment (ICR). There is not much difference between these two programs. The income-based repayment program has a broader reach, this program is available through both the Federal Family Education Loan Program, and the Federal Direct Loan Program. While ICR is only achievable through the Federal Direct Loan Program. With both of these programs your monthly payment might not be enough to cover the interest of the loan, but with IBR the government can pay this unpaid interest for up to three years. The ICR monthly payment are usually much more than the IBR, instead of the 25 years it take to pay off your debt through IBR it would take sometimes less than 10 years through ICR.
Another government program that is very similar to IBR is called the Income-cantingent repayment (ICR). There is not much difference between these two programs. The income-based repayment program has a broader reach, this program is available through both the Federal Family Education Loan Program, and the Federal Direct Loan Program. While ICR is only achievable through the Federal Direct Loan Program. With both of these programs your monthly payment might not be enough to cover the interest of the loan, but with IBR the government can pay this unpaid interest for up to three years. The ICR monthly payment are usually much more than the IBR, instead of the 25 years it take to pay off your debt through IBR it would take sometimes less than 10 years through ICR.
Public Service Loan Forgiveness
The Public Service Loan Forgiveness Plan was started in October 2007, and it allows individuals to get government help paying for their student loans. In order to be eligible for this plan help you must be employed under a public service company and make 120 on time payments. Also the loan must be under the Federal Direct Loan Program. Since this program was started in 2007 and a student would have to make 120 on time monthly payments the soonest that the government could started paying off student loans would be in October 2017.