New Student Loan Reforms and Law School Debt

This past Wednesday President Obama announced reforms to federal student loan programs. According to the President's website, the program's two main features are

• Effective this January [January 2012], if you’re someone who has different kinds of loans—guaranteed and direct—you’ll be able to roll them both into one direct loan and bring down your interest rate. You’ll only have to write one check a month—and you’ll see a discount. This switch saves money for taxpayers across the board. ...

• You might remember that, as part of last year’s student loan reform, borrowers’ loan payments could be no higher than 10 percent of their disposable income. This is a big deal—but it wasn’t going to go into effect until 2014. Today, the President announced that he’s speeding up this program so it will affect students next year—two years early. This will have huge consequences for people struggling to make their student loan payments.

According to Karen Jarvis at the National Law Journal, the changes will provide little or no benefit to current law students or recent law graduates with student loan debt.

Comments

[Northumbria University]

This is nothing more than an election gimmick - with a mounting state and sovereign debt crisis, this will only add to the demise of a once 'great' economic power.

[computer it schools]

The student's debt is the new economic crisis appearing lately in the States. Academic education is so expensive, students have to get credits to pay and then reimburse for years and years after they start working with no possibility to begin a "normal" life.