Bill Clinton’s speech at the DNC was rousing to say the least. The former president made some fine, reasoned, points. But 27 minutes into his speech, I’m not as confident as Bill regarding the student loan debt problem.
The former president neglected to mention that Stafford subsidized loans for graduate study were abolished by the current Administration, thus removing a safety bubble for penny-pinched grad students. And affordability of higher education is still very much an issue across the range of degrees and programs, especially in the depressed economy.
Bill is right in his assessment of the Obama administration’s Pay as You Earn program. The Program is a solid step in the right direction. Pay as You Earn will help those borrowers with a steady income and manageable monthly expenses; coupled with the Public Service Loan Forgiveness program, signed by the previous administration in 2007, there is now a “package” for borrowers to strategize repayment.
But I am guarded. We borrowers are not out of the woods just yet. Issues such as capitalized interest, which adds to the overall student loan debt, as well as “senior” citizen student debt burden are still significant problems. There is still room for improvement on the student loan repayment frontier.