Some Pitt Students Positive About Federal Student Loan Cap

PITTSBURGH (KDKA) — The economy and getting people back to work were the main focuses of Vice President Joe Biden’s visit to Pittsburgh on Friday.

He arrived in town this morning and headed over to Oakland where he spoke in front of a crowd at Alumni Hall at the University of Pittsburgh.

The Vice President is drumming up support for the President’s American Jobs Act, and part of the proposal deals with the re-payment of student loans.

A new study shows student loan debt is at an all-time high.

“About $100,000 when all is said and done,” said one Pitt student of her school loans.

“Definitely about $150,000 easily,” added another.

That’s what many college students can look forward to paying when they get their diploma.

But a new proposal could cap federal student loan repayment at 10 percent of their discretionary income, potentially making monthly payments much lower and less of a burden.

“I think it’s a really good idea,” said Alyssa Coast, a law student at Pitt. “It makes it much more manageable, especially when you’ve got so many loans.”

“I think honestly, anything that helps the students would be a benefit, just because funding your education can be a big burden,” added Erica Wahl, a Pitt junior.

Under the loan relief program, graduates would also be able to consolidate multiple federal loans with lower interest rates.

The promise is that all of this would come at no cost to tax payers. However, this would not help towards private student loans, which can carry hefty interest rates.

But some students here on the Pitt campus say while the cap program would help, it still doesn’t solve one big problem – the constant increases in education costs.

“We’re focusing all our anger on the loan companies, but we wouldn’t have to have the loans if the schools would control the cost,” said Jeff Guttilla, a Pitt senior.

Tuition costs are on the rise at many universities and colleges, including a recent increase at the University of Pittsburgh. Mix that with the need for private loans and a weak job market, and some feel a cap on federal loan repayment may not be enough.

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  • bruceUSA

    Lord help us if something should ever happen to President Obama!!!

  • How About

    Instead of spending money on Air Force One, security, road closures, overtime etc. — just send the students each a check instead. Just sayin’

  • Necessary?

    No need for him to come into town — haven’t they heard about SKYPE out there in Oakland????????????

  • Level Green

    Now is the time that loan amounts be determined by what a student is studying. Think about it, if a history or Literature major runs up a $75K loan debt, what are the practical chances of him/her paying that back versus say an engineering or nursing student? Is there a chance a history major lands a great job, sure but is it realistic….me thinks not.

  • Gordon

    Lets say a student incurs $200,000 in debt through student loans. They graduate, and are required to pay 10% of their income above the poverty level. They get a job paying $60,000 a year. That means they pay $4,529 a year towards their loans for 10 years. That means of the entire $200,000 taken out, they only have to repay $45,290…leaving the TAXPAYERS picking up the remaining $154,310.

    GJ Obama. Way to stiff the tax payers again.

    • J

      Gordon, they didn’t elaborate on it in this article, but according to the Washington Post “he program will not cost taxpayers anything because the administration plans to use savings from the elimination of loan subsidies to pay for the reduction on interest rates on loans that are consolidated.”

      • kimt824

        Okay J — Just because the Washington Post says it won’t cost taxpayers anything doesn’t mean its true. We (as taxpayers) pay for our governments and failure of any debt being repaid whether its bailing out the banks, auto industry or student loans comes back to the taxpayer. The federal government doesn’t know how to save. Really you believe they save. They want you to spend spend spend and this includes both democrats and republicans.

  • Equality

    Hey while the rich have it all today why waste money getting a degree. We should close all of our colleges and schools and only educate the rich kids and make all the rest slave labor! Then they will bring jobs back from overseas for the slaves of the United States

  • Vinny

    Mart Griffin says all VP Biden has accomplished is to jam up traffic

  • law

    obamas federal programs for forclosure failed so will this think about the term loan ?????????????? what a joke. you can put a education on hold you but you still need a place to live?????? mmmmm.

  • Zoeyzotron

    YOU want to go to College, YOU pay for it. You know the cost going in.

    If you want to go after someone how about the schools for charging so much.

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