Annsleigh Spotted In "Take On The President's Student Loan Plan" - FOX5 News Story

Paul
Yates
By MYFOXATLANTA STAFF/myfoxatlanta

ATLANTA - President Barack Obama says he'll take action to lower student loan payments for many graduates next year. The president's plan will also let students consolidate loans.

Student loan debt has now passed $1 trillion and the default rate is going up.

At the Atlanta University Center, Elyse Ambrose is one of many who feel the weight of looming student loan debt. "I am concerned about it. I try not to think about it too much because it is sort of just looming over my head, but I hope that it'll all pay off at the end," Ambrose said.

Georgia Tech student Andrew Martin said he tries to use loans as little as possible.

President Obama went to the University of Colorado in Denver to announce executive action that will lower some students' loan payments by accelerating an income-based repayment program. The president's plan will cap federal student loan payments at 10 percent of discretionary income starting next year instead of 2014. Graduates with loans from two federal programs will be able to consolidate the loans at a slightly lower interest rate. The White House says the new will lower student loan payments for 47,000 Georgia residents and will give 100,000 residents a chance to consolidate loans. The new measures come as college expenses continue to rise.

Annsleigh Thornton, a student at Spelman College, said the plan would offer welcome relief.


A new report shows average in-state tuition and fees at four-year state schools went up by more than $600 this fall.

Republican congressional leaders complained that there are still many unanswered questions about the president's plan.

They said the real way to reduce the burden of student loans is to slow down the rise in tuition.