Obama announces new effort to reign in out of control student debt

Obama announces new effort to reign in out of control student debt

The ballooning costs of tertiary education hurts many American families and left much of today’s youth buried in debt. President Obama rose to power in part thanks to that youth vote. He is trying his best to return the kindness and ease the burden of debt for college students.

The ballooning costs of tertiary education hurts many American families and left much of today’s youth buried in debt. President Obama rose to power in part thanks to that youth vote. He is trying his best to return the kindness and ease the burden of debt for college students.

In order to make college more affordable, the White House will announce new steps to increase access to financial aid. President Obama will make a speech in Des Moines Iowa later today.

The new initiative will allow families to submit their FAFSA (Free Application for Federal Student Aid) earlier in the year, around the same time that college applications begin to be turned in.

“Learning about aid eligibility options much earlier in the college application and decision process will allow students and families to determine the true cost of attending college – taking available financial aid into account – and make more informed decisions,” said the White House in a statement.

Moving the submission date back from January to October will give college-bound students additional time to make their decisions and earn private scholarships.

The FAFSA determines students’ eligibility for federal student loans and Pell Grants. Many other loan and scholarship organizations base their selection on how much federal student aid a graduate receives.

“Over the next several years, the simpler FAFSA filing process could encourage hundreds of thousands of additional students to apply for and claim the aid they are eligible for – and enroll in college,” the White House statement said.

Collectively, American student debt currently stands at $1.2 trillion, the second largest form of debt held by Americans after mortgages.

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