President Barack Obama fielded questions from Tumblr users Tuesday, subsequently showing his support for recent legislation from Sen. Elizabeth Warren (D-MA) and advocating for stronger student loan entrance counseling for borrowers.
Tumblr users, many of whom platform founder David Karp said are borrowers, submitted student loan-related questions for the president, ranging from private loan protections to tools for sound financial decision-making.
Obama noted that, broadly, college tuition should be lowered, and necessary student debt should be manageable.
Students also need a better idea of college costs and impending debt burdens before they even accept admission to a particular institution, he said.
“The idea is to work with every college, university, and community college so that … ideally, before you even accept admission, you are given a sense of what your annual loans might be, what your financial package is going to translate to in terms of debt, … and what your monthly payments are likely to be afterward,” Obama said. “Making sure that schools are obliged to counsel you on the front end … can make a huge difference.”
He also called on Tumblr users to advocate for the Bank on Students Emergency Loan Refinancing Act, legislation sponsored by Warren that would allow borrowers to refinance federal and private loans to current interest rates.
“This is actual action you can take,” Obama said, calling the refinancing bill “good legislation” that “would pay for itself.” “Everybody on Tumblr should be contacting their senators and finding out where they stand on this issue.”
Publication Date: 6/11/2014