The White House

Office of the Press Secretary

For Immediate Release
June 06, 2012

FACT SHEET: Helping Americans Manage Student Loan Debt with Improvements to Repayment Options

WASHINGTON, DC – In today’s economy, higher education is not a luxury – it’s an imperative that leads to better jobs and a strong middle class. The President believes in creating an economy built to last that gives every hard working student a fair shot at developing the skills they need to find a good job by attending college, university, community college, or job training programs. To help put the cost of higher education within reach for more Americans, the President has taken action to cap monthly payments on student loans for responsible graduates who make their payments on time. Tomorrow, the President will act again by issuing a Presidential Memorandum to the Secretaries of Education and the Treasury to streamline the process and improve information available to responsible borrowers about student loan repayment options.

The President has helped make higher education more affordable by extending Pell Grants to 3 million more students and signing a tax credit worth up to $10,000 to help middle class families cover the cost of tuition. However, prospects of high debt may discourage some potential students from enrolling at all and gaining the skills they need to compete in the global economy.  Additionally, some graduates may choose to put off starting a new job-creating business or entering a teaching or another public service career because they feel held back by debt.

Over the past several years, the Administration has worked to improve repayment options available to responsible student loan borrowers. Since 2009, former students have been able to enroll in an “Income Based Repayment” (IBR) plan to cap their student loan payments at 15 percent of their current discretionary income if they make their payments on time. Legislation signed by President Obama in 2010 lowered this cap to 10% for borrowers beginning in 2014.  In October, the President announced a “We Can’t Wait” executive action to make that lower cap available to more borrowers by the end of 2012, which will reduce monthly student loan payments for more than 1.6 million responsible student borrowers.

Despite these opportunities and policy improvements to help graduates make their monthly payments, too few responsible borrowers are aware of their repayment options.  Even among borrowers who are aware of their options, too many have had difficulties navigating and completing the application process. For many, the most significant challenge in completing the application has been the income-verification process, which, until recently, required borrowers to provide a signed copy of their income tax return.  Although the Department of Education has recently removed some of the hurdles to completing the process, too many borrowers are still struggling to access this important repayment option due to difficulty in applying. That is why tomorrow’s Presidential Memorandum:

  • Streamlines the IBR Application Process: The Department of Education, in collaboration with the Treasury Department and Internal Revenue Service, will create a streamlined online application process for IBR that allows student loan borrowers with federally held loans to import their IRS tax return income data directly into the IBR application. This process will allow income information to be seamlessly transmitted so that borrowers can complete the application at one sitting.  Federal direct student loan borrowers will no longer be required to contact their loan servicer as the first step to apply. 
  • Enhances Online and Mobile Resources for Loan Repayment Options and Debt Management: The Department of Education will create integrated online and mobile resources for students and former students to use in learning about Federal student aid, including an explanation of the various options to cap monthly payments based on income. The Department will also develop and make available to borrowers an online tool to help students make better financial decisions, including understanding their loan debt and its impact on their everyday lives. This tool would incorporate key elements of best practices in financial literacy and link to students’ actual Federal loan data to help them understand their individual circumstances and options for repayment.
  • Increases Awareness of IBR: The Department of Education will instruct Federal direct student loan servicers to make borrowers aware of the option to participate in IBR before a student leaves school and upon entering repayment. The Department of Education will make available for institutions of higher education a model exit counseling module that will enable students to understand their repayment options before leaving school and to choose a repayment plan for their student loans that best meets their needs.

The President will direct Secretary Duncan, and Commissioner Shulman to implement the first two improvements in the coming months (enhancing online and mobile content by mid-July, and streamlining the application with IRS data by the end of September). The model exit loan counseling tool will be available by this time next year.

The White House

Office of the Press Secretary

For Immediate Release
June 06, 2012

Readout of the President’s Phone Calls with Prime Minister Monti and Chancellor Merkel

President Obama spoke separately today to Chancellor Merkel and Prime Minister Monti to discuss economic conditions in Europe.  This continues the President’s close consultations with European colleagues following their Camp David discussions.  The Leaders agreed on the importance of steps to strengthen the resilience of the Eurozone and growth in Europe and globally, and agreed to remain in contact as they prepare for the June 18-19 G-20 Summit in Los Cabos, Mexico.

The White House

Office of the Press Secretary

For Immediate Release
June 06, 2012

Statement by the President on the Passing of Ray Bradbury

For many Americans, the news of Ray Bradbury's death immediately brought to mind images from his work, imprinted in our minds, often from a young age.  His gift for storytelling reshaped our culture and expanded our world.  But Ray also understood that our imaginations could be used as a tool for better understanding, a vehicle for change, and an expression of our most cherished values.  There is no doubt that Ray will continue to inspire many more generations with his writing, and our thoughts and prayers are with his family and friends.

The White House

Office of the Press Secretary

For Immediate Release
June 05, 2012

Statement by the Press Secretary on the President Signing the Border Tunnel Prevention Act of 2012

Today the President signed the Border Tunnel Prevention Act of 2012, which builds on past efforts to criminalize the construction or financing of unauthorized tunnels across an international border. The Administration appreciates the leadership of Congressman Silvestre Reyes and Senator Feinstein, which led to the passage of the bill. Today’s bill signing is one more step in the Obama Administration’s efforts to strengthen our nation’s border security to deter and prevent smuggling, trafficking, and illegal immigration, while safeguarding and encouraging the efficient flow of lawful trade, travel, and immigration.

Over the last three and a half years, this Administration has dedicated unprecedented resources to our borders with real and significant results.  Our borders are more secure than ever. We have nearly doubled the number of Border Patrol agents since 2004, Department of Homeland Security unmanned aerial capabilities now cover the Southwest border from California to Texas for the first time ever, and apprehensions along that border reflect far fewer attempts to cross illegally while seizures of illegal currency, drugs, and guns are dramatically up – leading to increased criminal arrests and prosecutions. Today, the Department of Homeland Security released the first unified Northern Border Strategy that provides a framework to enhance security and resiliency while expediting lawful travel and trade.

The White House

Office of the Press Secretary

For Immediate Release
June 05, 2012

Readout of the President’s Call with Prime Minister Cameron of the United Kingdom

The President spoke today by phone with British Prime Minister Cameron, continuing their regular and close consultations on issues of mutual concern.  The President and Prime Minister discussed the economic situation in Europe, as well as preparations for the June 18-19 G-20 Summit in Los Cabos, Mexico.  The President also commended the Prime Minister for the special forces raid over the weekend that freed several hostages in Afghanistan, including a British aid worker.  Finally, the President reiterated his congratulations to Her Majesty, the Queen, on the occasion of her Diamond Jubilee.

The White House

Office of the Press Secretary

For Immediate Release
June 05, 2012

Statement by the Press Secretary on the 2012 National Level Exercise

Earlier today President Obama participated in the 2012 National Level Exercise (NLE), sponsored by the Federal Emergency Management Agency (FEMA) as a part of its mandate to regularly test and evaluate our ability to respond to and recover from catastrophic events.  Today’s exercise examined challenges related to managing a cyber incident involving physical impacts on our nation’s critical infrastructure.  As a part of this exercise, the President hosted a Cabinet meeting to discuss with his leadership team the time-sensitive decisions that would have to be made if a significant cyber event affected critical infrastructure systems.

The NLE is an important tool in the government’s efforts to protect the United States in the event of a cyber incident affecting our critical infrastructure.  An increase in reported cyber intrusions into our nation’s critical infrastructure networks shows that these systems are not being adequately protected.  Last May, the Administration sent a legislative proposal to the Congress that would give the Federal government and private sector new tools to ensure our most vital critical infrastructure systems are properly secured.  The Senate is now considering legislation that would build on the Administration’s proposal to protect critical infrastructure.  As President Obama said in his State of the Union address, we need Congress to pass legislation to secure the nation from the growing danger of cyber threats, while safeguarding the privacy and civil liberties of our citizens.  The American people expect their government to ensure the cybersecurity of the critical infrastructure upon which so much of our national security, economic well-being, and daily lives depend.

The White House

Office of the Press Secretary

For Immediate Release
June 05, 2012

Statement by the President on the Paycheck Fairness Act

This afternoon, Senate Republicans refused to allow an up-or-down vote on the Paycheck Fairness Act, a commonsense piece of legislation that would strengthen the Equal Pay Act and give women more tools to fight pay discrimination. It is incredibly disappointing that in this make-or-break moment for the middle class, Senate Republicans put partisan politics ahead of American women and their families. Despite the progress that has been made over the years, women continue to earn substantially less than men for performing the same work. My Administration will continue to fight for a woman’s right for equal pay for equal work, as we rebuild our economy so that hard work pays off, responsibility is rewarded, and every American gets a fair shot to succeed.

The White House

Office of the Press Secretary

For Immediate Release
June 05, 2012

Statement by the Press Secretary on H.R. 2415, H.R. 3220, H.R. 3413, H.R. 4119, and H.R. 4849

On Tuesday, June 5, 2012, the President signed into law:

H.R. 2415, which designates the facility of the United States Postal Service in Pittston, Pennsylvania, as the Trooper Joshua D. Miller Post Office Building;

H.R. 3220, which designates the facility of the United States Postal Service in Pine City, Minnesota, as the Master Sergeant Daniel L. Fedder Post Office;

H.R. 3413, which designates the facility of the United States Postal Service in Bronx, New York, as the Private Isaac T. Cortes Post Office;

H.R 4119, the "Border Tunnel Prevention Act of 2012," which makes it a Federal crime to attempt or conspire to construct or finance the construction of an unauthorized tunnel or subterranean passage between the United States and another country or use such a tunnel or passage to unlawfully smuggle aliens, terrorists, drugs, or weapons of mass destruction; and

H.R 4849, the "Sequoia and King Canyon National Parks Backcountry Access Act," which directs the Secretary of the Interior to continue to issue authorizations to commercial pack stock operators within designated wilderness areas of the Sequoia and Kings Canyon National Parks in California.

 

The White House

Office of the First Lady

For Immediate Release
June 05, 2012

First Lady Joins the Walt Disney Company to Announce New Standards for Food Advertising to Kids

First Lady Michelle Obama today joined The Walt Disney Company Chairman and CEO Robert A. Iger to announce that Disney will become the first major media company to introduce new standards for food advertising on programming targeting kids and families. Under Disney’s new standards, all food and beverage products advertised, sponsored, or promoted on Disney Channel, Disney XD, Disney Junior, Radio Disney, and Disney-owned online destinations oriented to families with younger children will be required by 2015 to meet Disney’s nutrition guidelines.   The nutrition guidelines are aligned to federal standards, promote fruit and vegetable consumption and call for limiting calories and reducing saturated fat, sodium, and sugar. American children see an estimated $1.6 billion a year worth of food and beverage marketing, and many of those ads are food food that are high in calories and sugar, but low in nutrition. The First Lady has been focusing on these issues since launching her Let’s Move! initiative, and in 2010 called on the Grocery Manufacturer’s Association to retool their advertising to market healthy foods and habits to children.

“This new initiative is truly a game changer for the health of our children,” said First Lady Michelle Obama. “This is a major American company - a global brand - that is literally changing the way it does business so that our kids can lead healthier lives.  With this new initiative, Disney is doing what no major media company has ever done before in the U.S. - and what I hope every company will do going forward.  When it comes to the ads they show and the food they sell, they are asking themselves one simple question: ‘Is this good for our kids?’”

“We’re proud of the impact we’ve had over the last six years,” said Robert A. Iger, Chairman and CEO, The Walt Disney Company.  “We’ve taken steps across our company to support better choices for families, and now we’re taking the next important step forward by setting new food advertising standards for kids.  The emotional connection kids have to our characters and stories gives us a unique opportunity to continue to inspire and encourage them to lead healthier lives.”

Disney Magic of Healthy Living On-Air
Disney’s iconic characters, creativity, and family entertainment platforms offer a unique position from which Disney can help make nutritious eating and physical activity fun and rewarding.  Disney Magic of Healthy Living includes online resources for families, live events, as well as informative short-form programming.  The on-air spots, which today reach almost 100 million households in the U.S. on Disney Channel, Disney XD and Disney Junior, inspire and encourage kids and families to live healthier lifestyles through better eating habits and fun activities.
Disney’s 2006 nutrition policy stipulated that promotions aimed at children 12 years old and under – most notably for films -- would meet specific guidelines.  Since then, Disney kid-targeted film promotional campaigns feature only healthier food and beverage products.

“Mickey Check” Tool
In addition to its new advertising standards, Disney today introduced the “Mickey Check” tool, an icon that calls out nutritious food and menu items sold in stores, online, and at restaurants and food venues at its U.S. Parks and Resorts.  By the end of 2012 the “Mickey Check” will appear on licensed foods products, on qualified recipes on Disney.com and Family.com, and on menus and select products at Disney’s Parks and Resorts.

Disney Magic of Healthy Living on Vacation
In 2006, Disney pioneered new, well-balanced kids’ meals served at its Parks and Resorts, which automatically include nutritious sides and beverages such as carrots and low-fat milk, unless parents opt out.  Of the more than 12 million kids’ meals served last year at Disney Parks and Resorts in the U.S., parents stuck with the healthier options 6 out of 10 times.  Now, Disney will enhance its efforts by further reducing sodium in kids’ meals and introducing new well-balanced kids’ breakfast meals.

Disney Magic of Healthy Living at Retail
Since 2006, Disney Consumer Products (DCP) has sold more than two billion servings of Disney licensed fruits and vegetables in North America, and has transformed its food offerings resulting in 85 percent of all U.S. licensed products meeting the company’s nutrition guidelines and only 15 percent reserved for special occasion treats.  Additionally, Disney will further reduce sugar and sodium in all licensed foods.

About Disney Magic of Healthy Living
Disney Magic of Healthy Living partners with parents and inspires kids and families to lead healthier lifestyles.  This initiative includes engaging content, useful tools, as well as nutrition guidelines that pair the fun of Disney’s stories and characters with a well-balanced portfolio of foods and healthier lifestyle choices. Disney’s nutrition guidelines, which were first introduced in 2006, were developed with the help of experts and align to federal standards. For more information, please visit: www.thewaltdisneycompany.com/mohl

The White House

Office of the Press Secretary

For Immediate Release
June 05, 2012

Vice President Biden, Secretary Duncan, CFPB Director Cordray and College Presidents Meet About Transparency of College Costs

College Presidents and Leaders to Commit to Providing Prospective Students with Key Financial Information

Today, Vice President Joe Biden, Secretary of Education Arne Duncan, Director of the Consumer Financial Protection Bureau (CFPB) Richard Cordray and Domestic Policy Council Director Cecilia Muñoz will meet with presidents and leaders from ten colleges and universities who will commit to providing key financial information to all of their incoming students starting next year. Following the meeting, Secretary of Education Arne Duncan and Director of the Consumer Financial Protection Bureau Richard Cordray will join Press Secretary Jay Carney in the briefing room where they will call on all college and university presidents to make the same commitment to provide easy-to-understand financial data about their higher education investment. 

Today’s commitment to financial aid transparency embraces the obligation to provide students and their families with the clear, useful information they need to make the best decisions about where to enroll and what kind of financial commitment they are taking on with their important, long-term investment in higher education.  Each of the participants will commit to providing the following information in one easy-to-understand place, to all incoming students as part of their financial aid package beginning with the 2013-2014 school year:

  • How much one year of college will cost;
  • Financial aid options to pay this cost, with a clear differentiation between grants and scholarships, which do not have to be repaid, and loans, which do;
  • Net costs after grants and scholarships are taken into account;
  • Estimated monthly payments for the federal student loans the student would likely owe after graduation; and
  • Vital information about student results, including comparative information about the rates at which students enroll from one year to the next, graduate, and repay their loans without defaulting on their obligations.

The colleges, universities and state systems of higher education making the commitment today to transparency in financial aid information are:

  • Arizona State University
  • Miami Dade College
  • North Carolina Agricultural & Technical State University
  • State University System of New York (comprised of 64 colleges, universities, and community colleges)
  • Syracuse University
  • University of Massachusetts System (comprised of 5 universities)
  • University of North Carolina at Chapel Hill
  • University System of Maryland (comprised of 12 universities)
  • University of Texas System (comprised of 9 universities)
  • Vassar College

Ensuring every American can attain a college credential is critical to President Obama’s plan for creating an America Built to Last.  With two out of every three new jobs requiring some postsecondary education, completing college has never been more important.  However, it’s also never been more expensive.  Students are borrowing more to attend college—about two-thirds of bachelor’s degree recipients, in fact, and rack up an average debt at graduation of over $26,000 in federal and private student loans.  While a quality higher education remains a sound investment, students and families need to clearly understand the costs and benefits of each college they’re considering so they can easily compare choices and identify the best value prior to enrolling. 

A key piece of President Obama’s plan to make college more affordable is improved information and transparency of college costs and value.  Clarity and accessibility of information is necessary so that students and families can make informed decisions about where to attend college, so they can choose a school that is best suited to their financial and educational goals. Too often, students and families face confusion when comparing financial aid packages, some of which do not clearly differentiate loans from grants, nor distinguish private vs. federal loans, making it difficult to compare aid offers side-by-side.

To help families better understand this information, the U.S. Department of Education, in partnership with the CFPB, gathered input from students, families, and the higher education community to develop a model financial aid award letter, or Financial Aid Shopping Sheet, which colleges and universities can adopt to provide prospective students with the type and amount of aid they qualify for and easily compare aid packages offered by different institutions.  This Shopping Sheet - a model of what a good financial aid award letter would look like – was posted online for public comment and feedback.  These agencies have received over a thousand comments, and are incorporating this feedback into a final form that will be available using Smart Disclosure—a format that helps provide consumers with greater access to the information they need to make informed choices.  The Department will be working with major software vendors to colleges to improve their financial aid award packages in the upcoming financial aid award cycle and plans to release a revised version of the Shopping Sheet by this fall, which will serve as an easy way for institutions to fulfill this commitment to transparency in helping Americans understand financial aid costs for college. At a speech on college affordability in January, President Obama encouraged all colleges to adopt the shopping sheet, to promote greater transparency in financial aid.