The 10 percent cap is a drop from the current 15 percent rate and was slated to go into effect in 2014; however, a difficult job market and shaky economy was incentive for the White House to move up the date.
Obama’s announcement is expected to come on the heels of a College Board release that reports tuition and related fees at four-year public colleges have jumped 8.3 percent from 2010, a $631 increase. However, a large increase in federal grants and tax credits has actually lessened the burden on families.
“For 25 years we’ve been putting more and more money into financial aid, and tuition keeps going up,” Patrick Callan, president of the National Center for Public Policy and Higher Education, told the Associated Press. “We’re on a national treadmill.”
About two-thirds of students in four-year colleges in 2009 used loans to pay their way, the Los Angeles Times reports, and 2011 has been a particularly bad year to enter the job market. For these reasons, growing anxiety — and inability — over repaying loan money has been linked to activity within the Occupy Wall Street protests and is a frequent theme on the viral blog “We are the 99 Percent,” in which movement sympathizers chronicle their financial situations.
What does the situation look like for you?
Where did you go and what do you owe? Tell us where you went to school and plot your loan amount and graduation year on the map:
Step 1: Visit the map.
Step 2: Click “Save to My Places”
Step 3: Type in the name of your college
Step 4: Click the pin and hit “Save to my map.” Select “Student Loans.” Click “Save.”
Step 5: Click “My Places.” Click “Edit,” then click the pin with your college location.
Step 6: Fill in the box with your name, graduation year and loan amount. Click “OK.”
Step 7: Click “Done.” The map should populate with your pin.
View Student loans: Where did you go and how much did you owe? in a larger map
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