According to a White House fact sheet, a teacher $25,000 in debt and earning $30,000 a year will see their payments reduced to about $114 a month.
Cohen is one of a handful of Congress members who are attempting to create a path for students with private student loan debt to declare bankruptcy
“It’s really important to realize that the faces of student loan borrowers are not just young people who went to traditional colleges,” Loonin said. “The faces of student loan borrowers are also older people, non-traditional students, working adults. It’s a much broader community.”
One particular concern is the rise of publicly traded for-profit colleges — programs like the University of Phoenix, which often serve non-traditional students and confer degrees online — which has produced a high rate of default among its students.
Loonin said that about 70 percent of the people she works with at the NCLC, most of who are already in default, attended for-profit colleges.
“There’s rampant fraud in that sector, and deception,” she said. “A lot of people are being deceived into signing up, ent, faculties, and deceived about the prospects at the back end. The for-profit issue is really a consumer fraud issue.”
In a Wednesday statement, Sen. Dick Durbin, D-Ill., praised Mr. Obama for his proposal but pointed to students at for-profit institutions as being in need of further government assistance. Continua a leggere