WASHINGTON, DC – Assistant Democratic Leader James E. Clyburn today issued the following statement on the announcement of President Obama’s initiatives to assist Americans with the repayment of their student loans. The President’s plan moves up the implementation of a Congressionally-passed plan that links loan repayments to the income of the borrower and lowers the payment cap to 10 percent. It caps the terms of loan repayment to 20 years and encourages loan consolidation at lower interest rates.
“We need to support smart investment in education to build ladders of opportunity for people who are working harder and harder and struggling to get by with little or no real hope of ever getting ahead. The wealth gap continues to widen in this country. The Congressional Budget Office recently reported that over the last 28 years, those in the top one percent have enjoyed a staggering 275 percent gain in income while folks in the middle 60 percent have seen their incomes grow by 40 percent and those in the lower 20 percent have experienced an income gain of only 18 percent. Working families are falling farther and farther behind and deserve a better shot at the American Dream.
“For far too many families today, the cost of higher education has meant daunting debt and endless loan repayments, so I welcome President Obama’s plan to ease the burden of student loans. These common sense solutions will make a real difference for people struggling in this tough economy.”