Friday, September 4 , 2015, 3:26 am | Fair 65.0º




Capps Announces ‘Pay as You Earn’ Student Loan Repayment Program

By Ashley Schapitl for Rep. Lois Capps |

Rep. Lois Capps, D-Santa Barbara, on Friday announced the implementation of the Obama administration’s “Pay as You Earn” program.

The administration’s “Pay as You Earn” proposal will reduce monthly loan payments by capping them at 10 percent of discretionary income to make loan repayment more manageable for recent graduates. Additionally, 10- and 20-year loan forgiveness may be available to borrowers who successfully meet their monthly payments as a part of the “Pay as You Earn” plan.

Click here to learn more about the “Pay as You Earn” plan and to find out if you are eligible.

“We know that higher education is one of the keys to ensuring our economic competitiveness in the 21st century,” Capps said. “That’s why we need to make sure going to college is more affordable and that earning a degree doesn’t overwhelm our nation’s young people with debt after graduation. Unfortunately, years of budget cuts at the state level are shifting a larger and larger portion of the cost of higher education on to our students and their families, making it especially important for the federal government to step up and offer help.

“The implementation of President Obama’s plan will put more money in the pockets of borrowers on the Central Coast, reduce the risk of default, and encourage more job creation by increasing consumer demand. I encourage my constituents on the Central Coast to use the Department of Education’s online tool to see whether they are eligible the ‘Pay as You Earn Plan,’ and to take advantage of it if it makes sense for you.”

“Pegging loan payments to income greatly diminishes the stress that I’ve felt when thinking of the payments that I’ll have to make after graduating,” UCSB student Michael Dean said. “I know now that even if I find a job doing something I love, something meaningful and productive for my community, regardless of how well or how little that job pays, I will be able to pay back my loans fairly, and in a way that will leave intact my life goals, and any future plans I might develop that could be hampered by student loan debt.”

— Ashley Schapitl is press secretary for Rep. Lois Capps, D-Santa Barbara.




comments powered by Disqus

» on 12.21.12 @ 03:37 PM

Why continue to fiance students looking to ‘find themselves’ or learn for the sake of learning. 
We need STEM degrees so why not only loan money for STEM degrees.

» on 12.22.12 @ 04:33 PM

If Lois Capps is so concerned with not wanting to overwhelm young people with debt after graduation, why does she continue to support increasing our $16 Trillion Dollar national debt?  Who but these same young people are going to have to pay it off?

» on 12.22.12 @ 07:12 PM

There are so many problems with this PR drivel, it would take me a day to list them all. First of all, by taking advantage of this program, it will mean students will, in all likelihood, pay interest and principal for many more years than they would have under the normal amortization schedule. Instead of ten years, they will be paying interest for possibly 20 years, culminating in significantly more interest paid.

This program greatly increases the odds of more student defaults, resulting in increased payments from the taxpayer to offset the bad debt. Lastly, it encourages students to take on more debt, even though it will be an albatross around their collective necks for many years. Perversely, it also encourages colleges to raise their tuition if the govt is freely dispensing debt to kids who are unlikely to ever repay it.

Lois, why don’t you tell the entire truth about this program, assuming you are even aware of the particulars. Maybe you should ask your taxpayer-funded publicist to educate you about this foolhardy taxpayer giveaway.

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made through PayPal below, or click here for information on recurring credit-card payments.

Thank you for your vital support.

 

Daily Noozhawk

Subscribe to Noozhawk's A.M. Report, our free e-Bulletin sent out every day at 4:15 a.m. with Noozhawk's top stories, hand-picked by the editors.