Statement from Ben Goodman, Chair, YDA College Caucus:

“Today’s college graduates are entering one of the toughest job markets in history.  With the rising costs of a college education, young people have a tougher hill to climb to financial solvency than ever before.  President Obama, who only recently finished paying off his student loan debt, understands that to be productive, engaged members of society, today’s young people need the tools to manage their debt responsibly.

“Young students and recent graduates saddled with student loan debt can’t wait for Congressional Republicans to quit playing political games with our future, and President Obama knows that the time for action is now.  The new initiatives unveiled by the Administration today will make it tremendously easier for young people to responsibly manage and pay back their debt in a timely fashion.

“Financial literacy is also a key component of financial responsibility, and we applaud the Administration’s new efforts to better educate students about managing college costs, student loans, and the option of Income Based Repayment.

“Currently, through Income Based Repayment, student debt holders can cap loan payments at 15% of discretionary income, with a cap of 10% set to go into effect next year.  We commend President Obama’s bold efforts to lower that cap sooner so that new college graduates can enter the work force and practice safe and responsible financial habits while paying off their obligations.

“For students with both Department of Education direct and Federal Family Education Loan payments, today’s announcement of a payment consolidation plan is welcome news. Paying back student loans in one payment will make a big difference for young debt holders.

“President Obama understands that higher education is vital to our nation’s future, and that our new graduates are vital to our nation’s workforce.  Today, the President and his administration have taken significant steps to help student loan borrowers pay off their debt, get back on their feet, and succeed in the workforce.”