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In order to bring about certain changes in the SAFRA or Student Aid and Fiscal Responsibility Act, an executive order was recently signed by our President. College students will be benefited by this move and will be able to manage their debts better. This seems to be a good move that will provide increased education access to students.

Student debt has surpassed $1trillion and our President is supported in his efforts to quell the fast rising student debts by the Second District for Connecticut Congressman Joe Courtney. There was another rise of over six hundred dollars in the average in-state fees and tuition.

More than fifty percent of bachelor’s graduates are saddled with a debt of over twenty thousand dollars says the College Board. In a press release, Courtney said that in order to remain in the fray in this highly competitive global economy, it is imperative for students to get a college degree. However the degree should not come saddled with a huge student loan debt.

Our President’s determination to speed up the laws that were passed by the Congress last year was applauded by Courtney. This law especially stipulates lowering the maximum amount to be repaid on student loans. It is now easier for borrowers to cap their loans from fifteen to ten percent of their discretionary income. After twenty years their remaining debts will be forgiven. Previously, forgiveness was after twenty five years.

The plan is called Pay As You Earn and its benefits can be enjoyed by students from as early as 2012. This program will serve as a great advantage for 1.6 million borrowers. They will be able to make several hundred dollars savings per month. New spending in the economy will be spurred by the SAFRA income caps that will give us more disposable income, according to Courtney.

The plan was designed to benefit borrowers who are unable to make loan payments inspite of having a job. By reducing repayment to affordable levels, the Pay As You Earn program offers great financial relief.

Borrowers already in default however do not find a place in this program. Only students who have borrowed between 2008 and 2012 and after will benefit from this plan. Borrowers who wish to benefit from this program must have loans from Federal Family Education Loan Program as well as a direct loan.

White House says that taxpayers can benefit from this program as the plan will be free for them. This is because Federal Family Education Loan Program loan subsidies will not be paid to private lenders.

It is a positive first step indeed. At least the 1.6 million students will stand to benefit from the SAFRA student loan relief plan. Courtney has always been advocating higher education access expansion in White House. He strongly feels that Americans today are struggling with huge student loan debts and the program indeed is welcome news for them. More students will now reach out for higher education opportunity as they will be sure their fiscal burden will be relieved to a great extent.