The Final State of the Union
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Summary:
More Americans with student loans will now be able to lower their monthly payments to 10% of their income.
No hardworking American should go broke from student loans. That’s why today, the Department of Education announced an expansion of the Pay As You Earn loan repayment plans (PAYE) that will help bring relief and make it easier for millions more Americans who are struggling with student loan debt. Under PAYE plans, if you're a borrower who needs help with your debt, you can reduce your monthly payment to as low as $0 and you'll never have to pay more than 10 percent of your income towards student loan payments.
We’re doing everything we can to get the word out. Today, Mint -- a personal financial management tool -- sent an email from President Obama to young Americans with student loans who use Mint to make sure they heard the news.
We need your help to spread the word, too. And don't just take our word for it: Find out just how much your monthly payments could be cut with this repayment estimator.
This is just one of the many ways President Obama has worked to help Americans get a college education without being burdened with a mountain of debt. The President has also:
- Doubled investments in college scholarships by expanding Pell Grant and the American Opportunity Tax Credit programs
- Made student loans more affordable by cutting interest rates and launching PAYE so student borrowers can cap student loan payments at 10 percent of income
- Called for two years of free community college for responsible students
Sign up for the new plan or visit the Federal Student Aid website to learn more about the details of Pay As You Earn and related plans.
