Obama Signs Student Loan Overhaul Into Law

President Obama signed student loan overhaul legislation into law today.  The new law will remove private banks from their long held role of middlemen between students and government guaranteed funds.

Instead of obtaining loans from private lenders such as Sallie Mae, students would instead get their loans directly from the Federal government. The administration says that this new legislation will save taxpayers $68 billion over the next decade.

In addition to providing direct student loans from the Federal government, under the new law,  student loan payments would be capped at 10%  of the borrower’s income and provide additional funds to community colleges.

This new legislation is a welcome change to students concerned about how they will repay their loans and college graduates struggling to do so in the current economy.

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5 Responses to “Obama Signs Student Loan Overhaul Into Law”

  1. Frankie Galvano says:

    Another great addition, I really could not have talked about it far better personally.

  2. […] Obama Signs Student Loan Overhaul Into Law | Debt & Credit Solutions […]

  3. Donnell Durham says:

    Hello,I love reading through your blog, I wanted to leave a little comment to support you and wish you a good continuation. Wishing you the best of luck for all your blogging efforts.

  4. Abigail says:

    I wonder how it will change debt… The government will actually see the money again, since you can’t negotiate federal student loans the way you can with private banks. Then again, this means people will be followed by the debt no matter what.

    And I’m not sure that’s a bad thing. In fact, I’m pretty sure it will be good for Americans taking responsibility finally. Still, it will change things.

  5. it’s really an interesting article. superb… for reading it, Nice article. Thank you

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