Today President Obama was in an Atlanta, Georgia gymnasium with nearly 10,000 students of Georgia Tech University. While there giving his speech, POTUS (President Of The United States) exclaimed his mission… Driven by unveiling his “Student Aid Bill of Rights.” Also known as his new measures for student borrowers, the President hopes to help bring order to the current loan system, which he like many others feel is emboldened in chaos… but something tells us there was more hype than help!
By preaching to Millennial’s that their answers will come when they ‘stand up for their rights‘, and then announcing a medley changes, consisting of targeting a few bullet points, like: ordering Navient (formerly Sallie Mae), contractors of government loans, to have stricter rules for which to inform borrowers on their repayment options; OR his desire for a single website where we can see all federal loans in one place, avoiding having multiple loans invested in various companies, making them less complex and confusing (personally, I am a fan of this one, take it from someone currently paying back loans); Obama also proposed legal changes to how bankruptcy affects student loans; AND the White House’s new bill also requires the 3rd party collectors/ banks to apply early payments to the loans with the highest interest rates, helping students pay off debt faster!
Y Tip: Here is a tip I learned over the last few years, since I graduated with my own loans hanging in the balance… Save, SaVe, SAVE! The worst part of having these loans is that you will end up having to defer them, your interest rates will accumulate higher payments and before you know it, you will still be paying back loans into your 50’s. If you save your money and pay back whole sums of loans (thousands at a time), you will be able to ‘reallocate and recalculate’ your loans for lower monthly payments and reduced pay-back time frame.
The memorandum, which Obama signed this week, will provide vital tools in the compliance of student loaners and debtors according to The White House. Personally, I think we have to wait and see– higher education pay-back redemption plan was a major point Obama ran as a slice of campaign propaganda, just a few years ago, yet it is one promise to which less and less resources have been allocated to! Right?
Every American should be able to afford college, but POTUS shared in many of the fears we carry in toe, in order to succeed in job stability, we should be able to afford the loan payments, which kick in the second we graduate… but, due to absorbent interest rates and lagging repayment options- it’s has become more and more of a challenge for young Americans. In turn, this debt has caused lower numbers of relationships focusing on a future of marriage, buying a house or even the long delay in starting a family.
Y $ Tip: Try to pay back two monthly payments at one time, this is what the President was referring to, it will help pay the interest off faster, so that you can begin to work towards paying off your principal.
Everyone has a story when it comes to borrowing money, in the name of higher education… Our Question is … Was it (College) worth It?