Many students rely on student loans to pay for college. On Tuesday of last week, the Obama administration created a plan that will allow millions of Americans to reduce their monthly bills with these loans. This is the most recent process that has led to an increase in borrower defaults. Many students are unable to find employment after graduation and struggle to repay their loans. I think this is a very positive decision, but I believe that college education should be free in America as it is in my home country. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get an Original Essay These ideas have been on the administration's mind since the summer of this year. According to this article: “The new rules allow five million more borrowers to qualify for the government's most generous income-based repayment program. Borrowers typically reduce their monthly payments by several hundred dollars under the program and can have a portion of their debt forgiven after 20 or 25 years. Now this possibility is also available to those who borrowed several years ago. However, no distinction was made regarding the deadline for borrowers. I think this is a big step forward in helping the economy and helping students. Although this idea is quite attractive, it poses a risk to both taxpayers and borrowers. According to the Department of Education, this will cost taxpayers nearly $15.3 billion over a ten-year period. Borrowers are unaware that this new plan will only increase the amount they owe. This is because payments often do not cover interest. Some think they will be trapped in debt even longer. Obama's new plan addresses concerns about student debt. He said that since 2007, student debt has more than doubled. In 2007, it was nearly $1.2 trillion, according to the Federal Reserve Bank of New York. Many administrators are concerned about the consequences of this measure on people's solvency. If credit is extremely bad, these students will not be able to buy a car, house, etc. This can really affect the daily lives of these students. According to my article, nearly one in three Americans who make monthly student loan payments were at least one month behind on payments. This study was conducted by the St. Louis Fed earlier this year. Around seven million students went an entire year without making a payment and these statistics were provided by the Ministry of Education. The report “highlights escalating college costs as well as a sea change in how American households finance higher education. “Ten years ago, graduating seniors typically found themselves with debt of around $18,550, compared to around $26,000 today. This number represents about a 56% increase since the last decade. Besides, it's double the rate of inflation in other words. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay In conclusion, I think this decision is quite complex but seems to be more beneficial. than harmful. Some debts will be eliminated after 20 to 25 years. It's better than nothing. I understand that these people will accrue quite a bit of interest, but it is better that they pay what they can afford, rather an amount..