Politics
Obama moving to create initiatives to ease student debt burden
Echoing Obama’s call to action on student loan debt are Education Secretary Arne Duncan and Jill Biden, the wife of Vice President Joe Biden, who planned to join Obama for the White House event on Monday. The president will continue the push Tuesday in an online question-and-answer session hosted by Tumblr.
Under an income-based repayment plan created by Congress, the maximum monthly payment is already set to drop from 15 percent of income to 10 percent in July 2014. Obama’s executive action eliminates that waiting period so borrowers can take advantage of lower payments sooner. In his weekly address, Obama noted that the Senate proposal, spearheaded by Senator Elizabeth Warren of Massachusetts, would be paid for by doing away with tax loopholes for millionaires. He said the choice facing lawmakers is whether to “protect young people from crushing debt or protect tax breaks for millionaires.”
Senate Republican leader Mitch McConnell of Kentucky in a statement criticized the Democratic bill for failing to address college costs.
“This bill does not make college more affordable, reduce the amount of money students will have to borrow, or do anything about the lack of jobs grads face in the Obama economy,” he said.
Copyright 2014 The Associated Press
