On Tuesday, President Obama told students at Georgia Tech that he plans to make the process of repaying student loans easier to manage.
According to the Huffington Post, Obama laid out a number of "tweaks and projects" that will make it simpler for people to repay their student debt.
"We're going to require that the businesses that service your loans provide clear information about how much you owe, what your options are for repaying it, and if you're falling behind, help you get back in good standing with reasonable fees on a reasonable timeline," he told the enthusiastic crowd. "We're going to take a hard look at whether we need new laws to strengthen protections for all borrowers, wherever you get your loans from."
Obama will reportedly consult with Education and Treasury departments, as well as the Consumer Protection Bureau, in October to decide whether or not bankruptcy laws and regulations should be changed for those with student debt. Lending companies have resisted leniency when it comes to bankruptcy standards for loans, though advocates have argued that standards should be loosened for those burdened with heavy student debt. Currently, 40 million Americans have student loans, and 70 percent of students with bachelors degrees will reportedly leave school with an average of $28,400 worth of debt.
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President Obama will reportedly require the Education Department to create a better system for borrowers that addresses complaints about lending. The deadline for this project is July 1, 2016.
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