President Obama on Wednesday unveiled a new plan to cut costs house money to 1 million project loan borrowers-in his offer mobile work agenda, a crowded around the latest instalment of congress.
Federal and private student loans to nearly 1 trillion us dollars, it has already surpassed the United States of credit card debt, constitute a powerful many borrowers burden the repayment of nearly double-digit unemployment.
The administrative authorities on the implementation of the plan to allow about 16000 students from free income started in 2012 to 10% in the first mortgage payment. It also forgive payment 20 years of student loan balances. The current law allows students to limit credit pay 15% of the income, after 25 years debt payments tolerance, a few students although aware of the options
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In a related measures, the United States department of education, now manage all the federal education loans, make the borrower, the consolidation of the federal and private loans, lower interest rates options.
"The university graduates to enter in recent memory in the most difficult job market, we have one of a kind of method, in order to help them to consolidate its debt to repay the loan, the upper limit of the save money," education minister, grace Duncan Tuesday in a conference call with reporters. "We can do, no taxpayer costs."
Even if the scheme in Denver rally before officially launched, house republicans questioned, the President can without congressional approval.
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Said: "the President will announce a program, we still not in congress to act on the major change, north Carolina representative Virginia fox (R), and host a hearing on Tuesday in the supervision.," what power department? What are those? "
"I can't answer the question," said James Runcie testimony, the education department of federal student aid chief operating officer. "Whatever we were told in the implementation and execution, we will optimize and does, in the borrower and the best interests of the students."
Part of the answer seems to be in March 2010 by the Democrats control of the congress a recruit. It ended the taxpayer subsidies, private bank loans, this means that only by education bureau is responsible for such loans to the government's money. This means that the $60 billion set to a student loan private Banks in the next 10 years, is now the labels.
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Congress directed by savings, expand to low and middle income students' PE, grants college education. But many house republicans still oppose behavior, they said the ministry of education in the nation's largest bank, one of the main is irresponsible to congress.
The republican committee spokesman Alexandra Sollberger in an email said: "this is the Obama administration to change the federal education policy work behind the closed doors of another example,". "We are disappointed that the ministry of education choose not to participate in the committee members to the press announced the plan before."
Republican critics also noted, the education department charge 6.8% loan cost much lower, "the government to create a beautiful big secret funds, said:" the Congressman John klein (R), Minnesota, the house education and labor committee chairman, in the outcome of Tuesday's hearing.
He KaShi "less than 1%" plan-the federal borrowing produce larger profit.
The officials don't agree with that. "Now direct loans to reduce the deficit, the education department spokeswoman Jane GeLiKeMan said." "I wouldn't want it to mud."
The White House office of management and budget (OMB), the 10-year rates is out of the department, GeLiKeMan lady added, in an E-mail. "In the market yesterday, 10 annual rate is 2 and 2.5. The administrative management and between budget office prediction, it more like 2011 years of 3.
Five years ago from us $50 billion in- some excellent $1 trillion in student loans burden in Wall Street protest is occupied a hot issue. Blame students struggle with loans, they can not be unable to repay the federal government to emerge from consumer protection
"Every one of the basic consumer rights and interests protects especially our student loan of congress has deleted, said:" Alan Collinge Zuccotti park last Sunday in New York protests against the site.
"This is the lead borrowers terrible results," he added. "The political will, strike does not exist."
President Obama on Tuesday said in a statement: "like these steps will not take bold action, we need to from congress to stimulate the economy and jobs, but they will be local as."
And mortgage loan or credit card debt, student loans cannot be eliminated by the bankruptcy process. As sputtering economic development at the university of investment is not always pay off for students. On NBC's "meet the press" Sunday interview, republican presidential candidate RON Paul called for federal student loans a "failed plan," because it makes the exaggerated cost.




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