College Loans Repayment Program

On Oct. 28^th, Raegan Bryant posted an article regarding President Obama’s revision of “Pay As You Earn Plan” on her blog entitled, "Melting Pot."   The original plan will reduce the amount that graduates have to pay toward their federal debt balance from 15% of their annual discretionary income and all remaining debts will be forgiven at 25 years.  This plan was revised on Oct. 26^th.  The new plan now includes a required payment for eligible college students at 10% of their discretionary income and forgives student loans in 20 years. 

This program will help many college graduates to be able to start their new life.  Instead of worrying about college loans, they will be able to focus more on trying to make their life better and at the same time, they will have more money to put back into the economy.  This plan could also have implications for Obama’s chances of re-election.  Also, this plan will help keep students from straying away from higher education because of costs.  Students will have a good credit history and overall the student loan default rate in the nation will decrease.  On the other hand, there is somewhat of a disadvantage to this plan.  Smaller payments could mean longer repayment period and the loan could accumulate more interest.  Also, this plan would only count toward federal loans.  Overall, I still think that this is a good plan to help many graduate students become successful in life.