COLUMBUS, GA (WTVM) - President Obama wants to make sure education student loans are handled properly by third party lenders.
He delivered his plan at Georgia Tech Tuesday to make that happen.
The Student Aid Bill of Rights will protect student loan borrowers against third party lenders when repaying federal student loans.
Lenders and loan service providers must be more transparent with students and borrowers, letting them know when their loans are transferred from one lender to another. Companies will also be responsible for letting borrowers know when they are behind on payments and making sure their not charged excessive interest fees. Local college students say this is a good way to stay out of debt.
"I think its unrealistic because in life, you have good debts and bad debts and I feel like school is a really good debt. You think they will help and assist you in trying to get rid of debt so you can be prosperous in the community, but I also understand both ways it its a business, so I can understand why they want to make a profit," Jody Summerville said.
Lending companies will have to work with those who have debts to make sure their payments are being applied to the loans with the highest interests rates first.
"Tuition should be cheaper. It should be a lot less expensive because if we don't have the jobs to pay it there's not going to be a job in general," Noah Sachs stated.
"With government regulations over that it makes it possible to for people to feel a little more secure with taking loans," Jody Summerville said.
A website will be set-up by July 1, 2016 so that borrowers can file complaints and get feedback about federal student loans all in one place.
The average student loan debt is about $28,000.
This action is one of a series that Obama has taken in recent months to improve access to higher education. Including a plan to make community college free.
A good education for these student at Columbus States comes with an expensive price tag. And students have a variety of student debt also.
"I'm close to 20,000 in debt already, just from basic college loans," Noah Sachs said.
"I have $30,000" Brittany Kimble said.
"I have $3,000 but I was blessed to have parents pay for the majority of my school," Jody Summerville stated.
President Obama wants student loan companies to become more transparent with loan information and how they are handled. Some students have found a way out of creating any debt for their education.
"I joined the army for 4 years and so they are paying for it for three years. I didn't realize how much they were paying until I looked at the bills. I was like 'WOW'. It makes no sense to pay that much for college to be putting that much back into society," Keenishea Stroy stated.
"They end up leaving college because they can't live the ideal life they could live because they are so bogged down in debt, trying to do the right thing. So I think its good think Obama is going out his way to have the chance to get rid of our debt faster," Summerville said.
Companies will also be responsible for letting borrowers know when they are behind on payments and making sure their not charged excessive interest fees.