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An estimated two-thirds of college students borrow money to pay for college, and the federal government is trying to make the process easier.

In an effort to increase student awareness of the options they have to manage loan debt, President Barack Obama announced the government will develop a streamlined loan application process and integrated online and mobile resources by the end of September.

According to a memorandum released by the White House, the average student who uses loans to pay for college graduates with about $26,300 of debt.

The memorandum said too many borrowers are unaware of their options to manage student loan debt, and many borrowers have difficulty completing the application process.

Shirley Ort, director of the UNC Office of Scholarships and Student Aid, said many students do not know what their options are because the topic of student aid is complicated.

More than one-third of seniors graduating from UNC have borrowed money, she said.

“Students, just like the rest of us adults, learn what they need to know just in time,” Ort said.

“It is not going to be in the front of their mind until they have to start repaying.”

Income-based repayment — which was introduced in 2007 — currently allows former students with a high debt-to-income ratio to cap their debt payments at 15 percent of their income. This amount will be reduced to 10 percent starting in 2014.

The program also provides for debt forgiveness after 20 years.

Sophomore Rachel Malin said she is concerned about the debt she could owe after college.

But she said she has friends who would have attended college if they had known about these options.

“It is good for all students to know,” she said. “Some of my friends didn’t go to college because they were concerned about debt.”

Some of the efforts to reduce the complexity surrounding the process include the use of online and mobile resources to explain repayment options.

Ort said she thought most students will find the provisions of debt repayment attractive, since it uses communication methods more familiar to students.

“It is a big challenge to get the attention of students, especially at the time of graduating, because there is a lot of things in their minds,” Ort said.

Junior Sanem Kabaca, an economics and public policy double major, said the program would help students.

“Any student is concerned about getting a job and repaying their loans,” Kabaca said.

She said the program provided her assurance that she would be able to pay back a loan.

“It takes into account each individual’s circumstances, rather than the graduating class as a whole,” she said.

Contact the State & National Editor at state@dailytarheel.com.

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