LOS ANGELES, Jan. 31, 2012 /PRNewswire/ -- This year's State of the Union address, which took place on Jan. 24, brought a series of proposals aimed at relieving the nation's problem of student loan debt. The suggestions offered by President Barack Obama would both directly and indirectly affect students as he hopes to both create more available jobs for graduates and keep their interest rates low.
"We will not go back to an economy weakened by outsourcing, bad debt, and phony financial profits," remarked the president.
Hinting at his willingness to help big businesses who are participating in the flight from America due to high in-country taxes, he said, "If you're a business who wants to outsource jobs, you shouldn't get a tax break for doing it."
"Every multi-national company should have to pay a basic minimum tax, and every penny should go towards lowering taxes for companies that choose to stay here and hire here in America," he proposed.
Such remarks spells great news for not only the big businesses that Republicans are often criticized for associating with, but also for the students suffering from overwhelming debt from student loans whom many Democrats have sided with. In addition to promoting business, a proposal like this would create more opportunities for graduates to put their education to use as they join the workforce.
The president continued to address the problem of our college graduates' debt by bringing up the government interest rate subsidy that's set to expire this summer.
"This Congress needs to stop the interest rates on student loans from doubling in July," said President Obama. "Extend the tuition tax credit we started that saves millions of middle class families thousands of dollars."
Source: http://www.whitehouse.gov/blog/2012/01/25/president-obama-state-union
If the tax credit subsidy expires, students can expect their rates to rise by 3.4 percent. However, if the credit is extended, America as a whole can expect to bite the annual cost of $5.6 billion to fund it, as reported by CNN Money.
For further analysis on the president's 2012 State of the Union address and other student financing issues, you can go to http://loans.org/student to find informative articles, breaking news and answers to the most important financing questions.
SOURCE Loans.org
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