Newsroom
June 09, 2014
Obama to expand student debt program
June 10, 2014 – President Barack Obama announced on Monday his administration would expand a federal program that aims to reduce payments for federal student-loan borrowers – opening the program to 5 million more federal student loan borrowers.
The program, "Pay As You Earn," caps the borrowers' monthly bills at 10 percent of their income and forgives debt that has not yet been paid off after 20 years of payments. Previously, the program was only available to borrowers who took out loans after October 2007. Obama on Monday directed Education Secretary Arne Duncan to change the rules to allow anyone with a federal student loan to join.
The broadening of the "Pay As You Earn" program comes during a push by Senate Democrats, led by Senator Elizabeth Warren, D-Mass., to allow current holders of private student loan debt to refinance through a government program at the lower interest rate available to students taking out new loans under last year's Bipartisan Student Loan Certainty Act.
NAFCU continues to monitor programs administered through the agencies and additional legislative action that it believes could limit credit unions' ability to meet their members' needs through private student lending. Borrowers with outstanding student loans may have interest rates of 7 percent or higher for undergraduate loans, while the Bipartisan Student Loan Certainty Act, enacted last summer, established a rate of 3.86 percent for those loans.
With efforts to address various student lending issues ramping up, NAFCU continues to oppose any attempts to allow student loans to be discharged through the bankruptcy process.
The program, "Pay As You Earn," caps the borrowers' monthly bills at 10 percent of their income and forgives debt that has not yet been paid off after 20 years of payments. Previously, the program was only available to borrowers who took out loans after October 2007. Obama on Monday directed Education Secretary Arne Duncan to change the rules to allow anyone with a federal student loan to join.
The broadening of the "Pay As You Earn" program comes during a push by Senate Democrats, led by Senator Elizabeth Warren, D-Mass., to allow current holders of private student loan debt to refinance through a government program at the lower interest rate available to students taking out new loans under last year's Bipartisan Student Loan Certainty Act.
NAFCU continues to monitor programs administered through the agencies and additional legislative action that it believes could limit credit unions' ability to meet their members' needs through private student lending. Borrowers with outstanding student loans may have interest rates of 7 percent or higher for undergraduate loans, while the Bipartisan Student Loan Certainty Act, enacted last summer, established a rate of 3.86 percent for those loans.
With efforts to address various student lending issues ramping up, NAFCU continues to oppose any attempts to allow student loans to be discharged through the bankruptcy process.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.