If Congress fails to act, college will be further out of reach for millions of students and families. In fact, an incoming freshman who borrows $27,000 over the next four years -- a typical debt incurred by today’s college graduates – is projected to pay over $4,000 dollars more over the life of their loans without the President’s proposal.However, the chart included with the plan shows that the average savings for student loan borrowers is actually $1,126. Despite tweets from the White House that seem to suggest the savings are annual ("Last year, President Obama helped students save an average of $1,000 on their college loans"), the footnote to the chart explains that the savings assumes the borrower "repays the loans over the expected period of 12 years." A savings of $1,126 over twelve years is $94 per year, or about 25¢ a day.
Note: This article first appeared at The Weekly Standard.
Note: Here's a post from last year's Don't Double My Rate campaign when the Obama administration used the same playbook, and Congress eventually signed on.