On Tuesday, President Barack Obama signed a Student Aid Bill of Rights to Help Ensure Affordable Loan Repayment.
In the address the president made as he signed the Student Aid Bill, he commented that America flourished in the 20th century because we had the most educated workers in the world. He stressed how importance it is to get an education in order to succeed in the working world, and stated that since many students borrow to pay for postsecondary education, it is imperative they be able to manage their debt as they embark on their careers.
Along with his administration, the president took the historic action to ensure that college remains affordable and students would be able to manage their debt.
He went on to say that college is a great investment and student loans help those who otherwise wouldn’t be able to go, to actually attend.
The Obama administration has already set up significant protection that ensures those with credit cards and mortgages are treated fairly. President Obama said they can and should do much more to give students affordable ways to meet their responsibilities and repay their loans.
“I agree with him,” said Maia Jackson, a senior biology major from Houston. “School is very important and a lot of people are afraid to attend because of money and not wanting to owe loans.”
President Obama said that now is the time for stronger protection for more than 40 million Americans with student loan debt. He believes that all students should have access to an efficient and responsive system along with feedback that holds loan services accountable.
He broke down the Student Aid Bill of Rights down into four sections, each section explain the purpose of the bill.“I think that’s a great idea,” said Vashone Vick, a senior education major from Houston. “I like the plan because now I won’t have to stress after I graduate about how I’m going to pay my loans back.”
Section 1 is the State-of-the-Art Complaint and Feedback System.
Section 2 is Helping Borrowers Repay Their Loans and Avoid Default. This section is broken down into six subsections.
The first requires all Federal Direct student loans servicers to provide enhanced disclosures to borrowers and strengthened customer protection.
Subsection B forms a task force to review recommendations to better ensure that services help borrowers make affordable monthly payments on their loans.
The next subsection provides additional protection for student loan borrowers.
Subsection D sets higher customer service standards. Its aim is to develop a system to give borrowers the opportunity to authorize the IRS to release income information for multiple years to better determine monthly payments.
The next subsection deals with developing and implementing a pilot program to identify the most effective ways to communicate with borrowers to help reduce delinquency.
Subection F makes it easier for Federal Direct Student Loan borrowers to repay their student loans.
Section 3 is focuses on Fair Treatment for Struggling and Distressed Borrowers.
“Section 3 is my favorite part. It focuses on treating us fair and giving us time to pay the loans,” said Shorlette Norsworthy, a junior social work major from Bastrop. “I like the idea of setting up plans and having someone call to see how I’m doing with my loans instead of calling demanding them.”