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As expected, our President’s proposed two pronged student relief program came under the scanner of higher education analysts who cautioned him against it. The plan was touted by Obama at the Denver based Auraria Higher Education Campus in front of thousands of students.

Pay As You Earn part of the plan is not very stable and realistic, cautioned policy analysts. According to them, these measures will not benefit all students. They also said that in their own interest, not all students who are eligible under this plan must pursue the relief.

Analysts say that though multitude students will enjoy eased monthly loan repayment burden, these are just measures offered amidst hype. Institute for Higher Education Policy Research and Programs Vice President Alisa Cunningham says that it all depends on the circumstances of individual students and it is difficult to figure out how this will work on a generic basis.

President Obama said that the administration will ensure that students studying in college right now will benefit from these changes. He also said that you could get a boost to your future through this plan that will come into effect next year. He also said that our economy is in need of such plans.

It must be noted that only students who took student loans in or after 2008 will benefit from this plan. Loans taken after 2012 will also come under this plan say Department of Education spokesperson, Sara Gast. According to her, this is exactly the group they wish to target and capture.

She says that this will help borrowers who faced a lot of challenge in attending school during the toughest economic period and are at present looking for employment.

The administration provided two examples of how the proposed measure would benefit students. Additional benefits can be enjoyed by those employed in public service and by school teachers. These include forgiving loans after ten years of repayment under the Public Service Loan Forgiveness Program. Loans for others will be forgiven after twenty years as compared to twenty five years currently.

According to some, plans such as this will help students consider federal loan options before reaching out for the expensive private loans. Skeptics feel that it is not fair as Pay As You Earn relief will benefit only those who took a loan after 2008.

House Committee on Education and the Workforce chairman Rep. John Kline, R-Minn says that though the administration keeps repeating, this plan will not result in promoting fiscal responsibility, strengthening economy or creating jobs.

The plan on the other hand, will only result in encouraging more borrowing which in turn will result in more debt for tax payers and students. The proposed plan will also have to come under negotiated rule-making which may take months to complete, say some.

Negotiated rule-making means if all issues are not addressed effectively by negotiators, regulations can be proceeded with and finalized by government. As Congress cannot actually deny repayment relief that will benefit students entering a tough economic scenario.