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RNC Blasts Obama's Plans for Cutting Student Loan Debt

By Todd Beamon   |   Saturday, 07 Jun 2014 07:19 PM

The Republican National Committee slammed plans by President Barack Obama to issue an executive order to ease the debt of millions of college students, saying his failed economic policies are why Americans cannot pay off their loans.

"Due to the Obama economy, millennials are stuck at home with their parents unable to find work," RNC spokesman Raffi Williams said in a statement. "Instead of putting forth serious legislation like the dozens of House passed pro-growth bills that sit on Harry Reid’s desk, Obama and the Democrats continue to play politics with the future of young Americans everywhere.

"Millennials want the opportunity to achieve the American Dream, just like every generation before them," Williams continued. "Unfortunately, under Obama’s leadership 63 percent believe the American Dream is unattainable.

"Republicans are working to increase access to the American Dream. I wish I could say the same about Obama and the Democrats."

On Monday, Obama is expected to announce several executive actions to ease the student debt burden, The New York Times reports. A White House official told the newspaper that they were "new steps to further lift the burden of crushing student loan debt."

The primary move will be the expansion of a 2010 law that limited repayments to 10 percent of a borrowers' monthly income, the Times reports.

The change is expected to assist as many as five million people who have older loans who are currently ineligible for the program. Those individuals obtained loans before October 2007 or stopped borrowing by October 2011.

The relief, however, does not kick in until December 2015, because of the time needed for the Department of Education to propose and institute new regulations associated with the executive order.

More than 37 million Americans owe a record $1.2 trillion in student loan debt. Some members of Congress have questioned whether a 2006 law that removed borrowing limits for graduate students had also helped worsen student debt.

In addition, President Obama is expected to announce that the Education Department will renegotiate contracts with companies that service federal loans, giving them more financial incentives to help borrowers pay off their loans.

The Education and Treasury departments are to work with H&R Block and Intuit Inc., the largest tax-preparation companies in the country, to inform borrowers of repayment options and tax credits for college tuition, the Times reports.

Obama is also scheduled to participate in a chat on the student debt crisis Tuesday on Tumblr, according to the Times.

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