Obama celebrates the limelight after changing the student loan industry.

President Obama is on a roll.  On Monday, he announced new initiatives to help those behind on their mortgages.  On Tuesday, he announced a new plan to give veterans jobs.  On Wednesday, he announced something even more impressive.  President Obama announced a new set of rules for student loan payments which may save hundreds of millions of dollars for college students in 2013 and beyond.  Apparently, the fact that college costs are getting out of hand, and the people at the top have noticed.

“It’s never been more important, but let’s face it, it’s also never been more expensive,” said President Obama, who said the issue is an economic one.  “When a big chunk of every paycheck goes toward student loans, instead of being spent on other things, that’s not just tough for middle-class families, it’s painful for the economy, and it’s harmful to our recovery, because that money’s not going to help businesses grow.”

The new rules won’t take effect until next year, but they promise to change the financial burden for 1.6 million current college students.  The new rules change student loan payments to 10 percent of a student’s discretionary income.  Students will be allowed to combine multiple loans into a new single loan with a lower interest rate, and that loan itself may be forgiven after 20 years.  The current rules cap loan payments at 15 percent of discretionary income and allow for loan forgiveness after 25 years of payments.

Students can research their eligibility for loan forgiveness at the government’s Student Aid IBR website.  Meanwhile, I paid my student loans off in 5 years because I moved back home, saved every penny I earned, and worked my butt off.  Maybe I can get some free government money, too?

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