Obama calls for help with debt relief on student loans

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Obama calls for help with debt relief on student loans
Saturday, Jan 30, 2010
By Lance Piper

In his first State of the Union address, President Barack Obama called on measures to provide some debt relief with regards to student loans.

Obama proposed that people who have graduated from college should not have to pay more than 10 percent of their income in order to meet their student loan obligations. Furthermore, the president said that student loans should be forgiven after 20 years, or 10 years if theborrower has entered into a life of public service.

The president also said that Congress should pass a bill to eliminate the tax subsidies that are given to banks for student loans.

"Instead, let's take that money and give families
a $10,000 tax credit for four years of college and increase Pell Grants," Obama said, adding later that colleges and universities have a responsibility to help solve the problem through cutting the costs associated with education.

The Career College Association said it applauded Obama's remarks on providing debt relief for college students, saying that it would provide aid to those who enter fields where starting salaries cannot support loan payments.
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