President Obama took the stage earlier this week to announce two plans that are hoped to spur economic recovery, along with provide much needed financial relief to Americans.
With student loan debt becoming a fast growing demographic of bankruptcy filings, Obama presented a student loan debt plan to help struggling graduates with their debt payments. The “pay as you earn” program is designed to cap payments at a maximum of 10 percent of the borrowers income, as well as offer consolidation programs to lower interest rates.
Obama also announced a mortgage plan that is aimed at helping underwater homeowners find relief from mortgage debt and avoid foreclosure. Revamped refinancing offers with less costs and increased flexibility in qualification standards are hoped to provide benefits to sinking homeowners.
The plans outlined by Obama come in the middle of his efforts to strengthen the economy and boost the job market. Already facing criticism for his efforts thus far, many political officials are putting up defenses against the student loan and mortgage debt plans.
Regardless of political lines, the President is facing many roadblocks and much opposition in getting these bills passed. The White House announced today that the President plans to use his executive powers to bypass a stalling Congress in efforts to get these plans put into action.