President Obama Signs for College Affordability Reform

On Tuesday afternoon, President Obama signed college affordability provisions to his health-care bill, making higher education more affordable for Americans.

Secretary of Education Arne Duncan thanked the President for his leadership and courage, as well as Congress for ‘doing the right thing,’ in a press conference after the law was signed. “Because of this legislation we can look a child in the eyes… and say that if they work hard, they can pursue their dreams,” said Duncan.

A news release from the White House Office of Media Affairs said the law will lower health care costs for American families and small businesses, raise the maximum Pell Grant (federal grant program), make loan payments more affordable, and increase investments in community colleges, at no additional cost to taxpayers.

When asked how college students will see a difference, Duncan responded that financial aid forms will be simplified, more programs and resources will be accessible, and there will be lower repayment costs for student loans. Starting in July 2014, students will be allowed to cap their repayments at 10% of their income and after 10 years of work in public service (school, government, nonprofit, etc) all student loan balances will be forgiven.

White House Conference Call with Secretary of Education Arne Duncan

In a conference call with college media organizations including WRGW News, Secretary of Education Arne Duncan stressed the importance for America's children to go to college in order to move the nation forward in the 21st century, stating that "economic security depends on education."

Duncan emphasized America's college completion rates, saying the White House has a "laser-like focus on improving college completion rate - only 40% of our children complete college, that not enough."  Duncan said that although the 40% rate was the envy of the world just a decade ago, America is now well behind other competitive countries.

Duncan also described the 'Income Based Repayment' system, created to reduce the burden of college loan payments.  IRP institutes a loan repayment cap of 10% on a former student's income, and the debt would be forgiven after 20 years.  However, for student entering the public sector, the loans would be forgiven after only 10 years, which Duncan said is incentive "to bring talent into the public sector.  Duncan believes 1 million teachers are needed in the next 5-8 years and that Obama's latest education proposals will cumulate as the "biggest investment in education since the G.I. Bill."