Obama proposes debt relief for students
By Suzanne Schiavone/BU Daily Free Press – February 8, 2010

Full-time tuition at Boston University is $37,910, and though many students receive some type of financial aid, for most, the cost of college leaves financial strain that takes many years to pay off.

But there may be hope for those with dismal loan outlooks in President Barack Obama’s proposed fiscal year 2011 budget.

The plan, announced on Feb. 1, includes a revamped education budget that would forgive the debt of students who have been trying to repay federal loans for 20 years, and the debt of those who decide to work in public service after 10 years.

Obama also said he will help make college more affordable by giving a $10,000 tax credit to families paying four years of college and by funding more Pell Grants for low-income students.

Secretary of Education Arne Duncan held a conference call with college journalists, including The Daily Free Press, to explain in further detail how the new measures will work and affect college students.

When asked how the government would be able to forgive all the loans and expand the Pell Grants, Duncan said “all of the funding for this would come from the fact that we would simply stop subsidizing banks.”

“Where is our priority? To keep subsidizing banks or helping students?” Duncan said.