THE WHITE HOUSE

Office of the Press Secretary

STATEMENT BY THE PRESIDENT

When I came into office, there was a student loan default crisis in this nation. Nearly one out of every four students was failing to pay back his loan.

Today, I am proud to announce that we have brought the default rate down below ten percent, the lowest rate since these data have been collected. The student loan program is now a shining example of government providing opportunity with accountability.

Some of those failing to pay back their loans were victims of fly-by-night schools that never followed through on their promises. I am proud that over the past six years, we have eliminated 1,065 schools from the student loan program, protecting students and taxpayers from fraud and abuse.

Other students had difficulty affording their loan payments, because they were just getting on their feet, or they had decided to take low-paying jobs serving their communities. I am pleased that the reforms for which I fought have given those borrowers a wide variety of options, including paying off their loans as a percentage of their income over time. And because of our economic strategy of reducing the deficit while investing in people's skills, there are jobs for those who finish college, so they can pay off their loans.

Unfortunately, there will always be some who just do not take their responsibilities seriously and then expect taxpayers to cover for them. Fortunately for the taxpayers, this government has expanded the tools that it has to find these defaulters and arrange for payment. That has taught others that a student loan is not a free ride.

This success comes from the hard work of government. It is a testament to the commitment of our Secretary of Education, to the policies that we have implemented, and to the people who have put them into practice.

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