| A $23,000 loan might not cover the sticker price for | | | | the top spot that CBS News has reported is |
| many new cars, but this is what the average student | | | | currently held by South Korea. The ability to |
| is said to pay to invest in an education through | | | | participate in college online, where the number of |
| traditional or online college. Recent changes in the | | | | online degrees is growing fast, has opened doors for |
| federal government's student loan program allow | | | | many to continue their education. The federal |
| those who obtain online degrees to pay lower | | | | government is considered the largest source of |
| installments on these loans over a shorter period of | | | | tuition assistance in the United States, providing |
| time than they have been. | | | | students with grants, loans and work study program |
| The changes in student loans, which extend beyond | | | | offerings so that they can more easily afford college |
| online degree pursuits, have been described by | | | | online and otherwise. And many more students are |
| President Barack Obama as "one of the most | | | | seeking tuition assistance as a result of the economy, |
| significant investments in higher education since the | | | | according to reports. |
| G.I. Bill", the New York Times blog, The Caucus, | | | | The government's direct loans are known as |
| noted. | | | | Stafford and Perkins loans. Some 1,800 participating |
| The changes are part of the Health Care and | | | | colleges and universities award these loans to |
| Education Affordability Reconciliation Act of 2010 that | | | | students for traditional and online college pursuits. The |
| Obama signed into law in late March. By ending | | | | Perkins loan, with 5 percent interest rates paid by the |
| fee-based, guaranteed agreements with banks and | | | | government while students attend college at least |
| private lenders that issue student loans, the | | | | part time, is provided based on financial needs that |
| government expects to save an estimated $61 billion | | | | are determined in part on individual or parental income |
| in taxpayer money over the course of a decade. The | | | | and assets. Stafford loans are reportedly available at |
| changes in part benefit the federal government's | | | | interest rates as low as 5.6 percent or less. For |
| "direct" student loans that typically don't involve | | | | students who have financial needs, Stafford loans |
| credit checks or collateral and generally don't have to | | | | can be "subsidized" so that the government covers |
| be repaid until after graduation. Students issued direct | | | | the interest for as long as they're in school on at |
| loans in 2014 and afterward are among those to | | | | least a half-time basis. |
| experience the changes. | | | | Students who receive direct loans to pursue an online |
| "To make sure our students don't go broke just | | | | degree have been required to put 15 percent of their |
| because they chose to go to college, we're making it | | | | income into repaying the loans, according to reports. |
| easier for graduates to afford their student loan | | | | Beginning in July 2014, students only have to dedicate |
| payments", Obama was quoted in the Associated | | | | 10 percent of their income to loan payments, reports |
| Press report as saying. "By the end of this decade, | | | | noted. In instances where students make their loan |
| we will once again have the highest proportion of | | | | payments on time, the loans can reportedly be |
| college graduates." | | | | forgiven after 20 years or less rather than after as |
| Obama wants the United States to rise from its | | | | many as 25 years. |
| current worldwide college graduate ranking of 14th to | | | | |