Target: President Barack Obama and Senator Elizabeth Warren
Goal: Commend President Obama and Senator Warren for expanding the Pay As You Earn program and lowering interest rates for low-income graduates
Last week, President Obama signed a memorandum proposing regulations that would allow more student loan borrowers to lower their monthly student loan payments to 10 percent of their income. When it takes effect in December 2015, the expanded Pay As You Earn program will help nearly five million federal student loan borrowers, many of whom are still struggling to make ends meet in a stagnant economy.
Young adults are sidled with increasing amounts of debt from student loans before they even graduate from college. Currently, 71 percent of students are in debt to pay for their Bachelor’s degree. The average debt is $29,400, hindering recent graduates who are struggling to find a foothold in today’s job market from saving for a home, retirement, or even leaving their parents’ house for good.
The Pay As You Earn plan caps monthly payments for federal student loans at 10 percent of a borrower’s income and forgives the rest after 20 years. When Obama’s plan is implemented next year, borrowers who took out loans before the plan came into effect will be able to sign up, reducing the burden of immediate repayment for millions of Americans who are still feeling the devastating repercussions of the recession.
In his address, President Obama also threw his support behind a bill proposed by Massachusetts Senator Elizabeth Warren that would allow borrows to consolidate federal and private loans with high interest rates at the lower rates that are standard today. Warren proposed to pay for the plan by slowly increasing the income tax of the hyper-rich.
Sign the letter below to let President Obama and Senator Warren know that you appreciate their relentless crusade to end financial injustice in America.
Dear President Obama and Senator Warren,
Thank you for your endless support of recent college graduates who are still struggling to make ends meet. Your plan to expand the Pay As You Earn program and retroactively lower student loan interest rates is a huge help to young adults who are trying to start their lives at one of the most economically trying times in United States history.
With tuition and living costs on the rise and post-graduation job prospects still grim, recent graduates need support in order to start saving for retirement, purchasing a house, and pursuing a life of their own independent of their parents.
Thank you for putting the needs of the average person over the avarice of the hyper-rich. Your dedication to justice and fairness do not go unnoticed.
[Your Name Here]
Photo Credit: Chris Potter via Flickr