"We always say, 'The more options for the students the better,'" said
Currently, the "pay as you earn" option, which caps payments at 10 percent of the borrower's monthly income, is not available to students who took out direct federal loans prior to
The new plan includes loan forgiveness after 10 years for people in public service jobs and 20 years for other jobs.
"There have been things like this before, but this is a little more generous," Seibring said.
Part of Obama's initiative is aimed at borrowers who are having trouble making loan payments.
The memorandum directs the education secretary to develop strategies targeted at "borrowers who may be struggling to repay their federal student loans."
However, Albrecht and Seibring noted, the student loan default rates at their institutions are about 3 percent -- well below the national average 14.7 percent reported by the
Obama also endorsed a bill, introduced by U.S. Sen.
Durbin was at ISU late last month urging support for the bill, which could come up for a vote Wednesday. Opponents object to paying for the measure by increasing taxes on millionaires.
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