Dear Commons Community,
President Barack Obama indicated earlier this week that he will support a new proposal to dramatically revamp the federal student loan program. As reported in The Huffington Post:
“A bill proposed by Sen. Elizabeth Warren (D-Mass.) would allow borrowers to potentially save thousands of dollars by giving them a chance to effectively pay off their high-rate existing loans in exchange for new loans that carry substantially lower interest rates.
The Obama administration initially was hesitant to fully embrace the bill because of disagreements over how to pay for it. But with mounting pressure from advocacy groups, and with a renewed political focus on issues confronting working families, the president has softened his opposition. Obama’s endorsement would be the latest recognition to date of the ascendance of Warren-style populism within the Democratic Party.
An administration official told The Huffington Post that Obama is expected to “call for passage of the refinancing bill” when it comes up for a vote, as it is scheduled to do next week.”
This is long overdue and a first step in reforming the federal student loan program. However, it will need approval by the U.S. Congress.
Regardless, congratulations Senator Warren!