Reducing Your Student Loan Debt: Barack Obama’s Plan to Help College Student Loan Borrowers

Reducing Your Student Loan Debt: Barack Obama’s Plan to Help College Student Loan Borrowers


[Voiceover] If you’re one of the millions
of Americans who have student loan debt, here’s some news you can use. Nearly six million
students who have both guaranteed and direct loans will soon be able to re-finance them
and get a discount. [VO] You’ll only have to write one check
a month. And, within a year, more than 1.5 million college students won’t be required
to make loan repayments over 10% of their income. [VO] All remaining debt is forgiven after
20 years of payments. And after only ten years for teachers, nurses, members of the armed
forces, and others in public service careers. [VO] This is one important repayment option
of many, designed to make student loan repayments more affordable. This progress all builds
on the student loan reform President Obama signed into law in 2010, which made sure that
more students from working and middle class families can get college educations, and the
opportunities that come with them. [VO] Bankers don’t get to be middlemen for
student loans anymore. We saved $60 billion by taking them out of the equation. And a
lot of that money is now going toward loans and grants to make college more affordable
for more people. [VO] It’s good news we’re sharing – so
pass it on! And learn more at barackobama.com.

100 thoughts on “Reducing Your Student Loan Debt: Barack Obama’s Plan to Help College Student Loan Borrowers

  1. @SilentProfessional1 because the loans are coming directly from the government now, now banks. did you miss that part?

  2. What about private student loans? I've looked into it, and private student loans are magically exempt for some unknown reason.

    What about people who have already defaulted on their student loans because they couldn't get a high-paying job fast enough?

  3. Hearing this information gave me such a feeling of relief – like I won't be swallowed whole by my school debt.

    Light at the end of the tunnel.

    THANK YOU.

  4. Thank you Obama I graduate soon and I was worrying on how I would pay off my loan debt. I will probably choose public service. Thanks Thanks Thanks!!!

  5. they were showing his speech at my campus yesterday. mind you, this was in the business college where almost everyone is either libertarian or conservative. most of the students who were walking by were smiling. thanks obama 🙂

  6. so those of us with no student loans pick up the slack with our tax money. student loans are money already spent, it cant magically disappear. thanks obama for wasting more of my money.

  7. This is a welcome change, but I'd like to see less money going to loans and more money invested in state and community colleges and vocational and apprenticeship programs. Not everyone needs to or should go get a 4-year degree, but if you want to keep the cost down, the best way to do so would probably be to have very high quality state and community schools with low costs and that means investment. You could also try and tackle job retraining at the same time, which is badly needed.

  8. @digitaldud: because public service jobs generally pay less than their for-profit analogues and the value-added doesn't show up in their salary

    @SlobbyHill: Great, then don't take advantage of the programs, although I'm not sure how consolidating loans at a lower interest rate or limiting monthly payments is having someone else pay for them. You do realize that even with the forgiveness programs you're going to be paying more than the cost of the loan over that 10 or 25 years, right?

  9. @connecticutmommy: Say you have $40,000 in loan debt at an interest rate of 6.25%. The monthly payment on that I believe works out to a around $260 a month. Over a 25-year period (300 months), you would've paid $78,000, which more than reimburses the taxpayer. Over a 10-year period, it would work out to close to $31,000, assuming that you got into public service work immediately, which is why it's an incentive to work in public service.

  10. Does this include private student loans? Because those are the killers. The federal student loans are already willing to help you make payments that fit your income level. But if you took out a private student loan with, say, Sallie Mae, you're life is over. Those people are sharks.

  11. How are people saying this won't help them? For one, if you have gov't student loans, after 20 years you don't have to pay them anymore as oppose to 25 years. Not to mention, if you are writing checks to more than one student loan, you can consolidate them one payment and NOT pay more than 10% of your disposable income. Re-watch the video! I'm sure EVERYONE can benefit from this, even the people who bad mouth the President (which they shouldn't if all they do is talk trash about Obama).

  12. GOP can pretend this is a bad thing – but in reality, this is VERY good for students and post-grads with huge loans!!!

  13. Has anyone considered the one truth, that every dollar a person owes in student loans is their own doing? I'm saddled with my own student loans because I chose to go to a small private school and borrow in order pay my way. I CHOSE TO BORROW… as did everyone who owes student loan money!! You chose the school you attended, you chose the tuition you were willing to pay, and you chose to borrow to pay it. It's remarkablethe willingness of some to shove the burden of their debts elsewhere…

  14. I'm blown away at the complete lack of personal responsibility exhibited by most of the people who've comment on this video. I have my own student loans, so I understand their burden. But my God, has everyone forgot the undeniable fact that we chose to borrow our student loans. WE CHOSE TO BORROW so we could attend the school of our CHOICE, paying a tuition amount we were WILLING to accept, using loans we VOLUNTARILY accepted. Curse all you want, no one saddled you with these loans but you.

  15. Excuse me. I don't see anything in this bill for older Americans who are still jacked up because of the ever-rolling interest rates that inflates the loans so high that repayment is virtually non-existent given the cost of living and the present state of the economy. I guess for those people, death will be the only relief. After all, for the millions of older Americans (baby boomers) who are out of work, but can still work, companies value less their experience and education. Reform? Not.

  16. Take the money, but don't vote for this jerk. He is just trying to buy your vote. College wouldn't be so damn expensive if the government hadn't got involved in the first place. Typical democrats, create a problem then create more problems trying to solve it.

  17. That's ok, because the universities are waiting to raise the rates. Screw OWS, eberyone should occupy a university (especially a private one).

  18. Teachers college debts are forgiven after ten years? This is something I'm pretty happy to see my tax dollar go towards. Teachers are underpaid and have an enormous responsibility. They deserve more.

  19. Dear President Obama, although I appreciate this effort – this doesn't really do anything to make college cheaper which is the real problem with student loans. Debt forgiven after 20 years? Anyone who is still paying off their student loans after 20 years of 10% their income is likely still in school. Please go back to the drawing board on this one. Maybe go with the plan from The West Wing – Make college expenses 100% tax deductible. Or maybe go with the Argentine system and make it 100% free.

  20. @09hillsdalean09 We should pay them back. But we can't. Because we can't find jobs that will pay enough. There are no jobs because no one buys things so no one makes things or employs people. No one buys things because we (the average people) throw 80% of our paychecks to student debts. The nation's student debt exceeds 1 trillion dollars. And who gets that money? And what is done with that money? The banks will garnish wages if you cant pay. So they're getting paid. And we remain poor.

  21. A student loan is an investment that will hopefully have a big return. Where is my help for losing money in the stock market and retirement plans?

  22. College should be free or vastly inexpensive. Why should the current generation and our progeny become indentured serfs to banks for a livelihood? I swear if things don't change, there will be a very violent uprising in this country. How long can people watch while parents have to tell their children to discard their college acceptance while the top 1% live in absolute splendour? Scientifically speaking if everything has an equal and opposite reaction, this system will be very short lived.

  23. @theone1087
    Everything doesn't have an equal and opposite reaction.
    That is a law about physical forces and the mathematics behind them.
    Natural selection doesn't even apply to humans anymore.
    Also, isn't this a step towards that?
    I can't imagine banks are happy that the loans are being cut short after 20 years, and the amount allowed to be paid went down. It might be more if they didn't have massive lobbying power…

  24. @09hillsdalean09 How much choice do you really have in the face of incredible social pressures to attend a good college, on top of the rising cost of living coupled with a net loss of about a million dollars in income over your lifetime.

  25. @09hillsdalean09
    Sorry guy, these days the American people don't subscribe to the start swimming or drown thing.
    They prefer to try and use the government as a tool to build a raft.
    And do you remember when the banks sold all the bad debt to the government? That bad debt they chose to take on?

  26. You guys want to make college affordable? Eliminate the student federal loans. This will make colleges slash tuition and make college as cheap as it was in the 50's and 60's.

  27. @09hillsdalean09 You clearly have never been outside the US. Most countries pay for students to go to college because it is an investment in the country's population (college grads go on to create jobs and stimulate the economy). The US on the other hand makes college a prerequisite for most jobs, yet preys on the same students which will drive the economy in the future (with ridiculous tuition, book prices, fees, and more).

  28. So as soon as your IBR payments are less than the payments on a 20 year consolidated loan you might as well just borrow as much as you can. It'll all be forgiven at the end of 20 years anyway

  29. @deviant3232 So, you are saying that you have no control over the decisions you make? Personally I save every dime that I make so that I don't have to go into debt for college. If you think that you were backed into your situation, then you deserve to have that debt looming over you.

  30. I really don't understand all the of the ranting over this, typified by @09hillsdalean09. Sure, students (who, by the way, are the least educated consumers) chose their loans, but why shouldn't they be able to refinance or have an income-limited payment plan? I choose to pay for utilities, but I can still get on a payment plan. As to forgiveness, when you've more than paid back the loan already, why keep the consumer saddled with debt when a college degree is basically required nowadays?

  31. As much as I hate how student loans follow you for the rest of your life, I really hate the fact that this program will allow for even more irresponsible borrowing.

    Last thing we need are more people going to horrible private colleges taking worthless classes with no job skill at all!

  32. Let's elect a candidate who understands economics, wants to actually end wars (not start new ones), and takes the Constitution seriously.

  33. "…make college more affordable." Do you realize that Universities in the majority of Europe are free or at least extraordinarily affordable? I live in Austria and the universities here are free while in Germany they cost 500 Euros per semester. Education is considered a human right here and is paid for by tax payers (but not the tax payers who didn't go or don't plan to go to universities.)

  34. Protest the colleges for their prices… Forgiving these loans means that everyone else has to pay for it. I'm tired of the Gov picking winners and losers; they should keep their damn hands off of everything outside the constitution. BASTARDS!

  35. @09hillsdalean09 except for the fact that i expected a good job.. worked my ass off graduated cum laude.. did everything in the book.. but no jobs! SO NO I DID NOT SIGN UP FOR THAT!

  36. @pf91rodman I suppose you want to eliminate grants too? Some people cannot afford to go to college and must take out loans and grants in order to go to even the most basic public university. Many bright students use these grants and loans to better themselves. Eliminating federal grants and loans would probably make higher education only available to those who already have money.

  37. @09hillsdalean09 Yea just like those African's choose to be slaves (never mind the gun pointed at their heads when they made the decision).

  38. college is outrageous because there is too much government in it, just like healthcare, so the whole idea of government saving us is just propoganda and what actually needs to happen is the gov needs too leave the price of education and healthcare in the hands of the teachers and doctors. im pretty sure your professor would'nt charge each student $25,000 a piece, since they only make like 100k max for a whole year for all the students they teach!

  39. @09hillsdalean09 Obama knows he has not answers to create jobs or help the economy, so he's just trying to buy votes. If people who benefit give them their votes, there's a good chance, there won't be a job waiting for them in the future. We need conservative economics which encourages the job creators to create jobs for those who took loans in the first place have a chance to be employed.

  40. Obama has policies and programs (from american tax payer money) that supports illegal immigrants. these job plans should be for americans not undocumented workers!!

  41. Just like everything "President Obama" has said, he makes this claim that millions will save money with a refinance of loans.

    How? Whats the policy? where is the discount coming from? who is taking a loss? Does it cater to affirmative action plans (AA raises prices and deficit prices for those who aren't a minority)? What will be dont for those who haven't yet gotten a loan yet?
    Look the major issue is a $60k degree is not valuable, even Lawyers are losing their homes.
    Debt slaves, all of us

  42. @09hillsdalean09 I want to pay back my loans. I choose to take them out and its my responsibility to repay them. I borrowed 40,000. At the current rate that i can repay them, by the time im finally done the bank will easily pocket over 140,000 in interest. I understand this is one of the ways banks make money, but taking in more than triple what was lended seems insane to me. And thats in addition to fees sallie mae charges when they misallocate my payments.

  43. Excellent, since we all know how the unintended consequences of bailouts help the economy… Once risk is artificially reduced, this won't cause tuition to increase even further will it Mr Obama? But heck, the fallout from poor economic choices won't be seen until after your election so it's all good….

  44. Where does the debt go once it's no longer collected? That's right, it's added to the next generations tax bill. Please understand this is yet another shell game, bribing your vote. What you ignore now will face you two fold upon retirement. Though no one will turn down free money, not wall street, nor home owners, nor students. This policy is just horrendous.

  45. Why is deferring this debt onto the next generation a good idea? How will this not simply raise the cost of tuition, just as similar policies created the mortgage crisis? Why is it economically disastrous for wall street and home owners to receive bailouts, but not students?

  46. 20 years to pay for an education or a life time of low Government subsidized wages- Sheople- this is not what you bargained for.

    Go to a college you can afford and work really hard when you are there- get out of school and work really hard to make something of it- that is the way to win.

    This provides yet another revenue stream (more borrowers) for the 1% who own you! Occupy and stop this nonsense!

  47. Wow lets try to create another housing crisis with student loans. when will american's learn nothing is for free. I guess the cost of school just got higher and more slimy lawyers going to school.

  48. Wow! Glad to see some one got jobs. All you Kock Bros. TEArrorsits once again chiming in with your asinine Neo-Con gibberish.

    How many decades of tax breaks do wealthy 2% "Job Creators" need, before they create those jobs?

    You are right… nothing is for free.
    You don't pay your phone bill, your phone gets cut off.
    You don't pay your electric bill, your power gets cut off.

    For the past decade, if not the past 30 years… you criminal wealthy elite have not paid your SOCIETY bill.

    Guess what?

  49. @pf91rodman Why would the elimination of loans directly lead to universities/colleges slashing tuition? Couldn't it also lead to them keeping tuition as-is, making it harder [if not impossible] for thousands of students to afford higher education?

  50. TAGG YOU IT YOU JUST GOT TAGGED BY SAMM !! YOU MUST ANSWER ALL 15 ? S AND TAGG AS MANY U2B FRIENDS AS YOU CAN UNTIL YOU GET A RESPONSE … ON " GET YOUR FREAK ON VEDIO TAGG" !! CONTINUE THE VEDIO TAGG CHAIN…

  51. @14TeaParty88 With the numbers 14 and 88 (and your a tea party supporter too?? Oh boy lol) in your name you must be a white nationalists or neo-nazi. Are you suggesting free college for everyone or just white people only? Other than that I agree with what you are saying as long as its for everyone and not exclusive. Without education we are all at risk of a troubling future up ahead cause we all affect everyone else wheter we want to admit it or not.

  52. I won't be graduating for another 3 years (cause I want to go for my masters) so how does this affect loan payments in another 3. 6. 9. 12. years from now?

  53. i graduated from top 5 business programs with a good gpa. but no work whatsoever … please forgive the student loans altogether. now that would be a real help.

  54. Ohh… doesn't always start with "reform", then help those in need with "restributed" wealth from the rich to the poor finally it goes on to a more "planned economy'.

  55. Wow I love these comments about how this is a bailout that rewards risky behavior. Guess what idiots– going to college is NOT a risky bet! It's something everyone should have the opportunity to do. A guaranteed return on your investment, and a driver of economic growth in the modern world!

  56. 1. claim to reduce student debt
    2. say its working
    3. idiots vote
    4. ????????
    5. $28 trillion in debt 4 years later!

  57. @IM1StealthPilot having more teachers and nurses and educated people will benefit america as a whole . Many of the college students today will even invent the next big thing the world will need. Do you want america to be a America of stupid people?

  58. we need to invest into our future…young people should not have to go into debt when getting the education and training necessary to enter the job market.

  59. The whole point is that college degrees are devalued. Just like housing a college education has become subject to a false raising of value of the college experience. All to charge you ongoing interest paid to the banks before you pay for your education. The banks get their interest paid first then you work on what you owe the college. In foreign countries folks who have the grades go to college and it's paid for by the government with a promise you will work for the government in return.

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