Cost Analysis Shows Obama Loan Plan Won't Save Students Much

Thursday, 27 Oct 2011 12:14 PM

By Jim Meyers

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
While the Obama administration is touting the president’s executive order designed to aid Americans saddled with student loan debt, an analysis of the plan shows that it will save the average graduate less than $10 a month.

One component of the order will allow borrowers with direct government loans and government-backed loans to consolidate their balances, which the White House estimates will cut the effective interest rate on loans by up to 0.5 percent.

In 2011, bachelor’s degree recipients graduating with student loan debt had an average balance of $27,204, up from $17,646 a decade ago. Using those figures, The Atlantic magazine calculates that the monthly savings for the average student loan borrower would be between $4.50 and $7.75 a month. Even a graduate with $100,000 in loans would cut monthly payments by just $28.50.

Other components of the executive order also would not have a major impact on graduates’ student loan debt, the Atlantic analysis found.

“While the president’s heart may be in the right place,” The Atlantic noted, “his effort isn’t likely to have much impact.”


© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Former DC Mayor Marion Barry Dies at 78

Sunday, 23 Nov 2014 06:09 AM

Divisive and flamboyant, maddening and beloved, Marion Barry outshone every politician in the 40-year history of Distric . . .

Washington Museum Won't Give up Guns After All

Saturday, 22 Nov 2014 20:47 PM

A small museum in northwestern Washington state says it won't be removing all of the weapons from its World War II exhib . . .

State Senator Protesting Ferguson a Victim of Attempted Carjacking

Saturday, 22 Nov 2014 19:56 PM

A Missouri state senator and gun-control advocate who has protested police actions in Ferguson surrounding the Michael B . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved