President Barack Obama unveiled Tuesday what he called the Student Aid Bill of Rights, a memorandum that explains a vision for higher education he said would help students manage the cost of college.
“Michelle and I have gone through this ourselves,” Obama said in a national teleconference Wednesday. “We wouldn't be here, where were are, if it weren’t for the fact that we got grants, loans and work study.”
The memo outlines broad goals for handling student debt presented in four key points, including the right to a quality education and the right to an affordable payment plan.
In a portion of the bill called “America’s College Promise,” Obama lays out a plan to make community college free for all Americans, allowing students to transfer to four-year institutions with half of their requirements already completed.
Secretary of Education Arne Duncan added in the teleconference that community colleges are not only useful to recent high school graduates, but also to those individuals who are looking to switch careers and retool their skillsets for jobs in fields such as information technology.
“Education is not an expense, it’s the best investment we can make, and we all need to work to make college more affordable,” Duncan said. “If we care about increasing social mobility … the only way I know how to do that is to have a great education.”
Obama also proposed a “pay-as-you-earn” plan for student loans, which caps loan payments to 10 percent of the borrower’s income after graduation. For those who enter careers in the public sector, these loans may be forgiven entirely after several years.
The plan includes an online complaint system where borrowers can report difficulties and communicate both with the government and government loan contractors. This system would be integrated with a loan database that would allow borrowers to look at the balances of their loans and make decisions about which payment plans work for them.
“Higher education remains one of the best investments you can make in your future, but also one of the best investments you can make in your country’s future,” Obama said.
