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Obama Annouced Student Loan Changes

The cost of higher education
The cost of higher education

Student loan debt is an issue in the political spotlight this week. President Obama was surrounded by college students at the White House when he signed an executive order making it easier for millions of people to pay off college debt. Last year, student loan debt topped at $1 trillion and that amount is expected to increase as college tuition rises.

Obama announced that borrowers pay no more that 10 percent of their monthly income in payments, but it is only available for those who started borrowing after October 2007. Under the Obama plan, the government will renegotiate its contract with federal student loan providers.

"I'm only here because this country gave me a chance through education," Obama said. "We are here today because we believe that in America, no hard young working person should be priced out of an education."

The Senate is expected to debate next week, but it faces opposition from the Republicans because student loan debt does not address the root cause when college tuition is to high.