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Many of us have been forced to take out student loans to complete college and be on our way to a bright future. We all have had to pay a steep price for education and our President’s Pay as You Earn program is indeed a blessing in disguise.

At least 1.6 million students with federal loans are benefited from this program. Their burden has lessened to a considerable extent even as these college graduates get a much needed financial relief. In 2010, these plans were approved by the Congress and Obama will strive hard to enact the changes in a year’s time using his executive powers. Thankfully he is trying to help current student generation to benefit from this plan by moving the date forward.

Many say he is pampering key demographic prior to the election. So what if he does? He is certainly smart to bring about major changes that will ensure that he retains hold on key voters. A major change announced by our President is the ten percent discretionary income cap on repayment plans that are income based. This is a five percent reduction from previous cap. It will help college students save at least a couple of hundred dollars which can be significant savings that could help them lead an improved quality of life.

It is possible for debtors to now combine direct loans with Federal Family Education loans in keeping with the new loan relief program. Consolidated loans will also benefit from the reduced interest rate. Government will offer a 0.5 percent reduction in the interest which will enable students to save hundreds of dollars a month.

Apart from this, debtors can now pay a single loan completely eliminating the hassle of tracking and paying multiple loans.  According to claims made by the White House, paying multiple loans in different outlets was one of the major causes of high loan defaults. They say that default rates could come down with consolidation. This claim however can only be taken with a pinch of salt.

There is no doubt that we are moving in the right direction. It would make more sense if dubious private loan offers made by banks are restricted. Though we do welcome free market, there are many private lenders who are out to enslave and swindle the debtor.

Our President has opened up further access to higher education and given students in our country a better opportunity by making the process of paying government loans realistic. We are far from being in a comfortable position however as our student debt outstanding surpasses one trillion this year. In fact, our national credit card debt is lower than student debt which is definitely an alarming situation.

In 2011 alone, there has been an eight percent increase in tuition fee, according to the College Board. No progress on the federal level is complete without giving our students more accessibility to higher education. This is the only way to build a strong future for our citizens.