The potential effects of Obama’s new student loan plan

In late October, President Obama proposed a plan to lower monthly loan payments for low-income students graduating high school in future years. The high cost of college and the debt burden of student loans have been popular discussions in politics, and a conclusive plan that could decrease student loan debts could dissolve these issues.

According to the New York Times, President Obama is not only lowering monthly payments, but is only requiring that the lower-income students pay the per-month charge of 10 percent of their discretionary income (or income after taxes) for a 20-year period. After 20 years, the remaining debt would be forgiven. This plan would prevent students from being in debt for the lengthy period that now has become a cause of distress for many adults.

Juniors and seniors at Manual are getting ready for college, which means they have to prepare to finance their educations soon. The Obama plan is intended to help out the low-income students who feel as if they would struggle under the such a huge debt burden. 

“I think the plan would be good because you can get rid of your student loan debts quicker, plus you can worry about other things instead of worrying about getting three jobs to just pay your loans off,” John Spencer (10) said.

“I think it will help me out in the long run because once I get out of college, I won’t have a setback while I’m trying to start a new life on my own,” Sarah Dabbagh (11) said.

Some students are skeptical about taking out loans for school in the first place. Nevertheless, they think that if Obama’s plan goes through, it may make their life simpler.

“If this plan does pan out, I probably still wouldn’t take out a loan, but I would consider it because I wouldn’t have to worry about my parents having to pay for everything,” Anthony Springat (12) said.

“I hope this plan goes through, because I don’t have any money saved up, so less interest means less money my parents and I have to pay off,” Mikyle Johnson (10) said.

They only thing holding some students back is not knowing whether or not the plan will go through. Students are afraid that the plan might not work out and that they will be stuck with paying off thousands of dollars.

“Obama’s plans have been getting shut down lately, and I’m afraid that this one might turn out just like the other ones,” Rachel Harrigan (11) said. “If it does turn out to be official, then it would make a difference in my student loan payments.”

 

 

Erian Bradley is a CMA Junior at Dupont Manual High School. She loves to write about upcoming events & things that are happening at Manual. She is on the Multimedia staff.