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.