Student Loans Considered Second Greatest Source of Household Debt

RENO, NV - For years Jessica Sanchez says she wanted to be a nurse working with children.

But she knew it would take a lot more schooling. What she didn't know at the time, how much money it would cost.

“So I had to work several jobs until the nursing program, and that's the reason I had to take out loans. Once you are in the nursing program you don't have time to work several jobs, and doing the nursing program its more like a full time job in itself,” says Sanchez, now a pediatric nurse.,

Three years into her career, she says she expects to be paying her loans off in the next several years.

She's not alone in her plans.

Total outstanding student debt has passed one trillion dollars more than the nation's credit card debt.

Here at UNR a little more than 30% of students depend upon federal student loans of one sort of another to take classes.

It’s estimated more than half of them will be about $22,000 in debt by the time they earn their bachelors degree.

Experts say that's manageable if they get that degree.

But the rate of students defaulting on their loans in 2009 was 8.8%.

While President Obama's announcement could mean monthly savings for 5.8 million Americans, those who are already in default will not qualify.

The President's plan simply accelerates a measure already passed by Congress that lowered the maximum amount of discretionary spending for student loan payments from 15% to 10%.

The plan was suppose to go into effect in 2014...

The President says he's ready to start it next year.