Many college students rely on student loans to pay for college while they study. On Tuesday last week the Obama administration created a plan that will allow millions of Americans to cut their monthly bills on these loans. This has been the most recent process that has led to the increase in borrower defaults. Many students are unable to find jobs after graduation and struggle with payments on these loans. I think this is a very positive decision, however I believe that college education should be free in America as it is in my home country. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original EssayThese ideas have been on the administration's mind since the summer of this year. According to this article: “The new rules allow five million additional borrowers to qualify for the government's most generous income-driven repayment program. Borrowers typically reduce monthly payments by hundreds of dollars under the program and can have a portion of their debt forgiven after 20 or 25 years. Now this is also available for those who borrowed several years ago. However, no distinction has been given to the cut-off date for borrowers. I believe this is a great step forward to help the economy and students. While this idea is quite attractive, it poses a risk to both taxpayers and borrowers. According to the Department of Education, it will cost taxpayers nearly $15.3 billion over the course of ten years. Borrowers are blind to the fact that this new plan will only increase the amount owed. This is because payments often do not cover interest. Some believe they will remain trapped in debt even longer. Obama's new plan for this addresses concerns about college debt. He said that since 2007, student debt has more than doubled. In 2007, it was nearly $1.2 trillion, according to the Federal Reserve Bank of New York. Many administrators are concerned about what this is doing to people's credit stability. If credit is extremely bad, these students will not be able to purchase cars, homes, etc. This can really affect the daily lives of these students. According to my article, nearly one in three Americans who make monthly student loan payments were at least a month behind on their payments. This was led by research from the St. Louis Fed earlier this year. Around seven million students went an entire year without paying and these statistics were provided by the Department for Education. The report conducted “underscores rising college costs and a dramatic shift in how American families finance higher education. “Ten years ago, a college graduate typically walked away with about $18,550 in debt, compared to about $26,000 today. This number represents approximately 56% of the increase recorded over the last ten years. It is also double the rate of inflation in other terms. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay In conclusion, I think this decision is quite complex but it seems to be more beneficial than harmful. Part of the debt will be eliminated after 20-25 years. This is better than nothing. I understand that these people will accrue quite a bit of interest, but they are better off paying what they can afford, rather a ridiculous amount. As I stated earlier, I believe the United States should adopt the way.