President Targets Student Loan Debt (with Poll)

College students across the state, including those attenting Princeton, Rutgers and Rider, could get relief under an Obama administration initiative that would limit monthly loan payments to 10 percent of income.

As reported by MSNBC,

Obama's plan will accelerate a measure passed by Congress that reduces the maximum required payment on student loans from 15 percent of discretionary income annually to 10 percent. He will put it into effect in 2012, instead of 2014. In addition, the White House says the remaining debt would be forgiven after 20 years, instead of 25. About 1.6 million borrowers could be affected.

He will also allow borrowers who have a loan from the Federal Family Education Loan Program and a direct loan from the government to consolidate them into one. The consolidated loan would carry an interest rate of up to a half percentage point less than before. This could affect 5.8 million borrowers.

Bloomberg reported Wednesday that a report by the College Board found that tuition has continued to increase:

Tuition and fees at U.S. public universities soared 8.3 percent this year, twice the rate of inflation, to an average $8,244, a College Board report found. Nonprofit private college costs rose 4.5 percent to $28,500.

Surging tuition has left the average college graduate with more than $20,000 in loans, according to the College Board.

Rutgers approved a 1.8 percent increase in tuition over the summer. Princeton approved a 1 percent increase in January and Rider approved a 4.9 percent increase in April.