Increased pressure on President Obama to take actions against student loan debt following State of the Union Address

When President Barack Obama delivered his State of the Union Address on Tuesday, February 14, he brought up several major issues concerning the national economy, including the housing market and other sectors where government assistance has been implemented to help curb the Great Recession. However, the president said noticeably little about the debt burden of the nation’s college graduates, although there are rumblings that government initiatives may be forthcoming due to pressure on both sides of the aisle from members of Congress.

According to a new study released by the Center for Responsive Politics, 46 members of Congress currently have outstanding student loan debt, showing that while many citizens might view politicians as out-of-touch with the needs of the general public, a lot of lawmakers are dealing with debt burdens themselves.

The study showed that even high-profile first term senator Elizabeth Warren owes roughly $65,000 to her alma mater, Harvard University, despite having taught at the school right before being elected.

As we recently reported, a number of senators have come on to co-sponsor a revamped version of a bill that would help borrowers who file for bankruptcy include private loans in their debt forgiveness. But there are more initiatives being proposed by people on and outside of Capital Hill.

A recent essay published by the think tank Center For American Progress entitled “It’s Our Interest: The Need to Reduce Student Loan Interest Rates” makes the case that programs similar to the ones enacted to help homeowners refinance their mortgages should be put into action to help with student loan debt. Currently, there are several initiatives, such as the Home Affordable Refinance Program which allows homeowners to bring the interest on their home loans down to a more manageable level by renegotiating the terms of the loan. In this essay, the authors argue that graduates have much higher average interest on their loans than borrowers who have mortgages, and that rates should drop in accordance.