FARMINGDALE - President Barack Obama announced today his plan to ease the burden of student loans, which some Long Islanders say is desperately needed. Starting in January, college students will be able to consolidate certain loans into a single monthly payment, and a cap will be placed on student loan payments at 10 percent of the borrower's income instead of 15 percent.In addition, student loans will be forgiven after 20 years instead of the current 25 years."Because of this change, about 1.6 million Americans could see their payments go down by hundreds of dollars a month," Obama said while speaking in Denver. Students and staff at Farmingdale State University welcomed the president's plan, saying it's essential. "Even here at Farmingdale State, almost one third of our students borrowed money last year, and we only expect that to go up in the future," says Financial Aid Director Diane Kazanecki Kempter.
The student loan relief plan doesn't need to be approved by the U.S. Congress, and Obama says it won't cost taxpayers a dime.
For President Obama's complete speech on student loan relief, go to your digital cable box and select iO Extra on Ch. 612.