Students in Tallahassee Discuss College Loans

President Obama is taking on student loan debt.

He signed an executive order that could help millions struggling with the issue. It'll expand a program that caps monthly payments for certain federal student loans at 10% of the borrower's discretionary income.

An additional 5 million borrowers will qualify by December of next year.

Also part of the plan, measures to help borrowers at risk of or in default.

Debt, even more so than a job is the new reality for college grads.

71-percent of students graduating with a bachelor's degree graduate with debt.

Deandra Egan will graduate from Florida State University in August with degrees in Theater, Women Studies and thousands of dollars of debt.

"I have about 27,000 right now. And that's just undergraduate nothing else," she said.

Egan admits that her first theater job won't make her a lot of money.

That's why she plans to move back home with her parents and work for AmeriCorps, a government service program that helps workers pay off their loans.

"Cause there's no way that I'll be able to have a job and be paying that off and be paying for everything else I have to pay for," Egan added.

President Obama's announcement Monday may help people like Egan. It would expand a program that allows borrowers to pay no more than 10% of their monthly income on loan payments to about 5 million more people.

"I think that relieving that stress right when you get out of school will help people maybe have more time to look for jobs and not be so stressed about having to have something just to pay back loans," Egan said.

But other students are skeptical.

"It really doesn't make a financial difference. It just means I'm paying my loans off longer," Ryan Douglass another student at FSU said.

The expansion won't go into effect until December of 2015.

Only about 1.3 million people take advantage of the current 'Pay As You Earn' program.

Experts say that's because many people aren't aware of it.


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