Govt. Makes Student Loans Easier to Pay Back

Pres. Obama announced Thursday that the healthcare bill that passed the Senate last Sunday (3/28) would significantly change the way student loans are handled, where all student loans would be given by the U.S. government.

Currently, private businesses offer loans for many students. But Obama said that allowing the government to have control of all student loans would make it easier to pay back.

"Already, many students are struggling to pay back their student loans," Obama said. "This legislation states that you will not be required to pay back more than ten percent of your earned income."

The legislation will take effect on July 1.