College Loan Advice President Obama signs Executive Order on Student Loans | College Coach Blog Written by Shannon Vasconceloson June 9th, 2014 I came to College Coach with close to 10 years of experience in college financial aid offices. I began my career at Boston University, where I counseled students and their parents on the financial aid process and reviewed undergraduate financial aid applications. At Tufts University, where I served as assistant director of financial aid, I developed expertise in the field of health professions financial aid. I was responsible for financial aid application review, grant awarding and loan processing, and college financing and debt management counseling for both pre- and post-doctoral dental students. I have also served as an active member of the Massachusetts Association of Student Financial Aid Administrator’s Early Awareness and Outreach Committee, coordinating early college awareness activities for middle school students; as a trainer for the Department of Education’s National Training for Counselors and Mentors, educating high school guidance counselors on the financial aid process; and as a volunteer for FAFSA Day Massachusetts, aiding students and parents with the completion of online financial aid applications. Learn More About Shannon college loans, paying for college, In breaking student loan news, this afternoon President Obama signed an executive order designed to provide repayment relief to struggling student loan borrowers. Obama’s plan attempts to relieve student debt pressures and decrease defaults in three primary ways: Helps existing borrowers lower monthly payments by expanding the Pay As You Earn (PAYE) student loan repayment plan to all Federal Direct Loan borrowers. Previously restricted to “new” student loan borrowers, defined as those without any federal loan debt as of October 1, 2007 and with at least one loan borrowed since October 1, 2011, PAYE will become available to all Federal Direct Loan borrowers by 2015, an expansion to about 5 million additional graduates. PAYE repayment caps monthly minimum payments at 10 percent of a borrower’s discretionary income. Get more details on the PAYE repayment plan. Requires the Department of Education to renegotiate contracts with federal student loan servicers such as Sallie Mae. The renegotiated contracts will provide financial incentives to servicers to provide better customer service and help borrowers avoid default. Provides expanded access to student loan repayment and tax incentive information through private sector businesses, professional associations, community groups, tax preparers, and social media. In this spirit, President Obama will host a Q&A on education, college access, and reducing student loan debt on Tumblr tomorrow. Questions can be submitted here. Though not part of the executive order, President Obama also took the opportunity to throw his support behind Senator Elizabeth Warren’s student loan refinance proposal, which would allow graduates with high interest rate student loans to refinance their education debt at today’s lower rates. The bill is expected to be voted upon by Congress within the week. Read more about Warren’s refinance proposal. Leave a comment below to let us know what you think about Obama’s new plan to ease the student loan debt burden. Related Resources Read | Posted on April 11th, 2024 How Much College Debt is Too Much? Read | Posted on March 28th, 2024 What is a Federal Parent PLUS Loan? Read | Posted on February 6th, 2024 Is the SAVE Student Loan Repayment Plan Right for Me?
