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Many experts, advisors on financial aid and area college officials are strongly supporting education proposals laid down by President Barack Obama even though it may actually spell out more hard work for them.

In his State of Union speech in the month of January, Obama made an announcement that college education will be made affordable in the near future. Obama proposed limiting of loan payments by students to 10% of the discretionary income of the borrower. This is lower than the current 15%. He also proposed to reduce to 20 years the existing 25 years for forgiving loan balances. This will be further reduced to 10 years for those who opt for a job in the public sector.

A permanent amount of $2500 towards tax credits per year was also proposed by him. For a student attending college for four years, a total of $10,000 will be spent. At the Marion Technical College and Ohio State University, Marion, officials were very happy that higher education was getting so much attention even as they waited to hear more.

There was a suggestion by the President to simplify process for applying towards increasing Pell Grants for students who come under the low income bracket, i.e. those with income ranging from $5500 in 2010 to $5710 in the year 2011.

According to Ohio State Marion’s financial aid and admission director Moreau, Pell Grant maximum rose for the second time this year which is great welcoming news for some of our neediest students. He also went on to say that the ICR or income contingent loan repayment option is a beneficial and wise course of action.

Moreau also said that various factors such as last year’s elimination of Opportunity Grant in Ohio College, current global recession and increase in college costs for the last ten to fifteen years has forced a lot of borrowings on needy students to cover their living expenses and college costs. He said that any measure that is initiated to make the burden on them lesser is always welcome.

According to Marion Technical College’s student services vice president Andy Harper, even though the tuition fee at the college is considerably lower, students are still forced to take out loans to complete their education. He said that reducing their burden on loan interest will be very helpful.
Eliminating the FFEL or the Federal Family Education Loan Program is another proposal by the President. This program guarantees and subsidizes loans offered by private lenders.

Harper said that though these proposals spell increased work load on colleges as compared to bank borrowings by students, it will be worth the effort if it could result in a lot of federal money savings in the long run. He also said that the plan was all about eliminating any middlemen including banks to offer students maximum benefits.

It is now up to colleges to help the President  implement his plans and bring our country once again to the fore in the field of higher education.