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

Thursday, 27 Oct 2011 12:14 PM

By Jim Meyers

  Comment  |
   Contact  |
  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.

  Comment  |
   Contact  |
  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

Twitter to Track Which Apps Its Users Have

Wednesday, 26 Nov 2014 22:22 PM

If you use Twitter on your cellphone, the social media site will soon begin tracking which apps you use unless you activ . . .

Harry Reid: 'We Sure Do Like' Pope Francis

Wednesday, 26 Nov 2014 22:09 PM

Senate Majority Leader Harry Reid, a Mormon, says he's an unabashed fan of Roman Catholic Pope Francis. . . .

GSK Ebola Vaccine Fast-tracked for Human Trials

Wednesday, 26 Nov 2014 20:37 PM

Preliminary results in human volunteers are promising from U.S. trials of one of the leading Ebola vaccine candidates. . . .

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