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Going to a four year college, an option that many students opt for, can be expensive—especially without financial aid or scholarships to ease the burden.

Going to school is a financial burden for many, and there is always the fear of a looming debt from student loans. That, alongside accumulating interest, becomes an ever larger shadow cast over a burdened student’s life. A degree and education does not guarantee a job, yet is required in most cases. 

On Oct. 26, President Obama announced student loan reforms to make it easier for students to pay off their federal student loans through income-based repayment (IBR), loan consolidation and consumer protection. 

The implementation of the president’s executive order is not the end all to the troubles of financial burden and rising costs of education, but helps like a band-aid would to protect a scrape rubbed raw.

According to the US Department of Education, 20 of the 23 Cal State Universities made the list of the highest increases in tuition and fees. Universities on this list range from a 37 percent increase for CSU Bakersfield (at the lowest on the list given) to a 51 percent increase for San Diego State University-Imperial Valley Campus with CSU East Bay, Stanislaus, Chico, Northridge and San Diego State trailing close by at 43-46 percent. 

No UC made the list for increasing tuition as of yet, which is of some relief, though it should be kept in mind that a UC is generally more expensive than a CSU. 

The White House’s fact sheet released on Oct. 25 states that beginning of July 1, 2014, the IBR will cap monthly payments from 15 percent down to 10 percent of discretionary income and forgive all leftovers after 20 years instead of 25 years. The President’s “Pay As You Earn” proposal assures that some of those benefits will be available to some borrowers by 2012.

It is important that the “some” elements of the latter statement be addressed, as the “Pay As You Earn” proposal is only limited to “new borrowers,” those being borrowers in 2008 or later, or 2012 or later. That means anyone with loans from 2007 and earlier or already in repayment will not benefit from the proposal. 

Another way the reform will attempt to help borrowers is by consolidating loans to reduce the risk of default and improve ease of making payments. According to the fact sheet, beginning Jan. 2012, borrowers will be allowed to make one monthly payment as opposed to two or more, and can also take advantage of “up to 0.5 percent reduction to their interest rate on some of their loans.”

The fact sheet also says that the new “Know Before You Owe” project, provided by the collaboration of the Consumer Financial Protection Bureau and the Department of Education, is aimed at creating model financial aid disclosure forms that colleges and universities could use to help students understand the costs and risks of student loans. 

It outlines their total estimated student loan debt and payments after graduation as well as additional costs not covered by federal aid. It is meant to be informative, and also leads to options such as IBR and deferment as ways of dealing with the costs.

The president’s reform on student loan is up front, clear and specific about the requirements and seems to acknowledge that despite all of these improvements, a person should still be wise and prudent about how he or she borrows.

Students will still worry about the amount they are paying for college no matter what. Nothing can ease that anxiety unless all public universities are made free which, realistically, isn’t going to happen any time soon. 

The reform on student loans is a positive step towards helping borrowers. It might not benefit everybody, but the fact that it will help many in some way, big or small, can only be a good thing. 

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