03
Feb

Financial Aid for Middle Class Proposed by Obama

Posted by Sara M. Varese

Here are some financial aid proposals that Obama has made to help out the middle class.

Child Care Financial Aid: The child care financial aid proposition is to almost double the child-care tax credit for households making less than $85,000 per year. This is an increase from 20% to 35% of the child care expenses.

Elderly care financial aid: The proposition is to help families take care of their elderly relatives by adding $52 million to the Caregiver Initiative. If this happens, it will help 200,000 additional people.

College Expenses: This proposition puts a limit on how much a person has to pay from their student loan to 10% of the ex-student’s income more than a basic living allowance. An extra bonus goes to students who enter a public service related field because all debt would be forgiven after payments of 10 years. For everyone else, it’s 20 years of payments.

Retirement Savings Financial Aid: Because about 40% of working adults do not have any kind of retirement or pension plan, the Obama administration is proposing to require employers without any retirement plans to put their employees in individual retirement accounts that are automatic with directly deposit.

As the credit crunch continues and people are turning to alternative types of financial aid such as borrowing from friends, payday loans, and car title loans, the administration finds it helpful to lay out some beneficial financial assistance plans for the near future.

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