Obama to offer help for students buried in debt

[Maximilian American]

http://money.cnn.com/2011/10/25/news/economy/Obama_student_loan/index.htm?fb_ref=fbLike&fb_source=home_oneline

By executive order too

[jkr]

WHY do i have the feeling i will STILL be buried when he is done?

[V3n]

RP talks about something, everyone reacts. RP is now steering the White House. That's true leadership.

[bluesc]

Obama to offer help for students buried in debt

That's a nice way to put it. What a good good samaritan.

[sevin]

...would drop the monthly payment for loans originated that year to 10% of discretionary income...

How do they determine what discretionary income is? If it's whatever is left after food clothing and shelter, then what about people who blow lots of money on dining out and buying expensive clothes? Does that mean they get a lower student loan payment?

[klamath]

By the kings decree, so shall it be........

[TonySutton]

Treating the symptoms instead of the disease... idiots!

[RonPaulFanInGA]

What happened to personal responsibility? Many of these people go into massive debt going to college, getting a degree in which they can't find a job to justify spending so much on it, and then blame everyone but themselves for it. "It's the fault of the schools for telling me I needed to go to college, the banks tricked me, my parents forced me, it's society's fault, the government's fault for ruining the economy...." Good grief. :rolleyes:

[Kords21]

I dropped out of college after 1 1/2 years. I realized that I was miserable and going into debt for it. It was a bum deal. I left college, joined the military and was learned a very marketable skill nursing. I worked hard and paid what student loans I had. I understand why kids have to take out huge loans and such, but you don't have to go to college, no one is putting a gun to your head and saying you have to go. I don't have too much sympathy for these kids complaining about their student loans, you wanted that degree, now pay for it. I believe that the gov't needs to get out of it altogether so prices can come down and college can be affordable. That's the problem with these kids in the OWS movement, they want more gov't in their lives, not realizing that all the gov't intrusion is the problem. At some point you have to take responsibility for your actions, but that's something that seems to be sorely lacking today.

[Acala]

What happened to personal responsibility? Many of these people go into massive debt going to college, getting a degree in which they can't find a job to justify spending so much on it, and then blame everyone but themselves for it. "It's the fault of the schools for telling me I needed to go to college, the banks tricked me, my parents forced me, it's society's fault, the government's fault for ruining the economy...." Good grief. :rolleyes:

You have a point. But there is another side to it. It was government subsidy, direct and through the banks, that inflated the price of education so much that it is very difficult to pay for college now without government subsidy or bank loan. And that IS part of the scam. Select a market and inflate the price by pouring new money into until the only way to afford it is by borrowing from the banks. First they did it with housing, then cars, then education.

As between screwing students and screwing the banks, that is an easy choice for me.

[Endgame]

You have a point. But there is another side to it. It was government subsidy, direct and through the banks, that inflated the price of education so much that it is very difficult to pay for college now without government subsidy or bank loan. And that IS part of the scam. Select a market and inflate the price by pouring new money into until the only way to afford it is by borrowing from the banks. First they did it with housing, then cars, then education.

As between screwing students and screwing the banks, that is an easy choice for me.

This won't do anything about the real problems in education financing. It will just allow me to kick the can down the road and be slightly less miserable in the meantime. What is needed is measures to reduce the principle (though hyperinflation might do that all by itself), make it subject to bankruptcy, and end further government backing of student loans which will lead to a collapse of the colleges and their unsustainable tuition prices.

[ItsTime]

"Obama forcefully orders others to help students with their bad decisions"

[Zippyjuan]

As I heard the program described, what it does is to reduce the required payments but not the amount borrowed. Lower payments means a longer payback period and more paid in total interest payments over the life of the loan. Could end up working like some mortgage plans did- if interest is more than the minimum payments you could see the principle owed go up.

[RonPaulFanInGA]

"Obama forcefully orders others to help students with their bad decisions"

Really, if you paid off your student loan fully and fairly, wouldn't you feel pretty stupid right about now?

[Endgame]

Really, if you paid off your student loan fully and fairly, wouldn't you feel pretty stupid right about now?

:rolleyes: Oh yes, because the government had noooothing to do with inflating tuitions all to fuck and making these loans bankruptcy-proof.

[Zippyjuan]

Most tuition (at least for in-state students) is usually taxpayer (government) assisted.

Higher education is a special market. It has not (so far) reached the point where raising the prices that people are willing to pay in order to "consume" it. There are really few restrictions on either the supply demand. Loans of course do allow people to be able to pay higher prices for education- allowing the prices to rise further without causing demand to decline. Healthcare has similar properties.

[torchbearer]

How do they determine what discretionary income is? If it's whatever is left after food clothing and shelter, then what about people who blow lots of money on dining out and buying expensive clothes? Does that mean they get a lower student loan payment?

I have student loans, perhaps I should start buying shit i don't need and eating at outback every night. i'd hate my prudence to condemn me.

[torchbearer]

Most tuition (at least for in-state students) is usually taxpayer (government) assisted.

Higher education is a special market. It has not (so far) reached the point where raising the prices that people are willing to pay in order to "consume" it. There are really few restrictions on either the supply demand. Loans of course do allow people to be able to pay higher prices for education- allowing the prices to rise further without causing demand to decline. Healthcare has similar properties.

The ease of the lending of student money causes artificially high demand, which increases the price artificially.
student loans has the same bubble as housing for all the same reasons. moral hazard.
lenders don't care if you are taking out $120,000 to get a 4 year degree in underwater basket weaving, because government laws garuntee the loan repayment.
defend that.

[specsaregood]

Really, if you paid off your student loan fully and fairly, wouldn't you feel pretty stupid right about now?

Solution, print up and give every single american 200k, cash. If you have student loans, then your loan amount is deducted of the 200k.
Presto, everybody is treated fairly! Hell, its only like 60 trillion too, chump change!

[amy31416]

If I've interpreted what I've read correctly, the plan is that your student loans can't be higher than 10% of your income. Sounds like incentive to not earn more or even anything--at least on the books.

[torchbearer]

If I've interpreted what I've read correctly, the plan is that your student loans can't be higher than 10% of your income. Sounds like incentive to not earn more or even anything--at least on the books.

i'm about to notify my boss i need to quit my job so i can get my student loans repaid for me.

[Zippyjuan]

If I've interpreted what I've read correctly, the plan is that your student loans can't be higher than 10% of your income. Sounds like incentive to not earn more or even anything--at least on the books.

As I understand it, it would limit your payments to ten percent of your income- it would not change the balance of the loan or restrict that in any way. As mentioned earlier, that would mean more total payments and more paid out in interest over the life of the loan. It won't change what you owe.

[amy31416]

As I understand it, it would limit your payments to ten percent of your income- it would not change the balance of the loan or restrict that in any way. As mentioned earlier, that would mean more total payments and more paid out in interest over the life of the loan. It won't change what you owe.

I understand that. Do you understand what I just wrote?

[LibertyEagle]

:rolleyes: Oh yes, because the government had noooothing to do with inflating tuitions all to fuck and making these loans bankruptcy-proof.

You knew that when you or whomever took out the student loan. You agreed to the terms. Now, you want the taxpayers to pay for your bad decision?

[jack555]

As I understand it, it would limit your payments to ten percent of your income- it would not change the balance of the loan or restrict that in any way. As mentioned earlier, that would mean more total payments and more paid out in interest over the life of the loan. It won't change what you owe.

If I'm not mistaken your loan is forgiven after 20 years if you pay 10% of your income for those 20 years

[torchbearer]

You knew that when you or whomever took out the student loan. You agreed to the terms. Now, you want the taxpayers to pay for your bad decision.

bankruptcy is liquidation of debt not transference.

[Zippyjuan]

I understand that. Do you understand what I just wrote?

I guess it was this highlighted part- sorry if I misunderstood you.

Originally Posted by amy31416

If I've interpreted what I've read correctly, the plan is that your student loans can't be higher than 10% of your income. Sounds like incentive to not earn more or even anything--at least on the books.

It said loans, not payments.

[amy31416]

I guess it was this highlighted part- sorry if I misunderstood you.


It said loans, not payments.

My bad then, I meant student loan "payments."

[specsaregood]

You knew that when you or whomever took out the student loan. You agreed to the terms. Now, you want the taxpayers to pay for your bad decision.

It isn't like it they were backed by any real assets anyways, its just funny money. They can just print it away as expected.

[Zippyjuan]

If I'm not mistaken your loan is forgiven after 20 years if you pay 10% of your income for those 20 years

Thanks for the info. Additional info:
http://www.washingtonpost.com/business/economy/obamas-student-loan-plan-isnt-so-new/2011/10/26/gIQA9a4RJM_story.html

The president’s announcement gives a boost to the current Income Based Repayment program, or IBR. That program allows borrowers with federal student loans — a key piece of information that is being left out of many reports — to have their monthly payments set to a reasonable amount based on their income and family size. Monthly payments can be capped at 15 percent of borrowers’ discretionary income. After 25 years of qualifying payments, the remaining debt, including interest, is forgiven.

Starting in 2014 and later, the cap is lowered to 10 percent and debt forgiven after 20 years. But under Obama’s executive order, borrowers who took out student loans in 2008 and later — and who take out a new loan in 2012 — can get the lower cap and the loan forgiveness starting next year, Gast said.

Let me put it another way so you are clear on who will benefit from this change. The president’s order does not affect borrowers who took on loans before 2008 and who do not take out a new loan next year. So, if you are already in repayment and are not planning to take out new student loans, this order does not affect you.

The changes could help borrowers who in 2012 and later consolidate loans from the government’s direct loan program and the nixed Federal Family Education Loan (FFEL) program. Overall, this measure would provide an estimated 1.6 million borrowers with more manageable monthly payments, the administration said.

By the way, if your loans are in default, you can’t take advantage of IBR based on the current program or the president’s executive order.

Got overwhelming private student loans? No soup for you!

[heavenlyboy34]

You have a point. But there is another side to it. It was government subsidy, direct and through the banks, that inflated the price of education so much that it is very difficult to pay for college now without government subsidy or bank loan. And that IS part of the scam. Select a market and inflate the price by pouring new money into until the only way to afford it is by borrowing from the banks. First they did it with housing, then cars, then education.

As between screwing students and screwing the banks, that is an easy choice for me.
On top of that, federal discrimination laws prohibit employers from testing for intelligence. The degree requirement allows them to sidestep that law. This forces people into college who would otherwise find other ways into a career. Just another instance of a government "cure" making the problem worse.

That said, there are now ways to get a BA for a fraction of the cost of brick and mortar schools-you just have to look for them (it's even possible to get BA before finishing high school). Too bad they didn't exist when I was in school. :(

[FreeTraveler]

Obama to offer help for students buried in debt

Hahahahahaha.

Can we retitle this thread truthfully?

Obama repurchases youth vote with your money

[LibertyEagle]

It isn't like it they were backed by any real assets anyways, its just funny money. They can just print it away as expected.

This seems like rationalization to me. The student contracted for a service. It was provided. Now, the student refuses to hold up their end of the contract.

I thought we were supposed to be the ones who were above condoning such things.

I can understand that a student made a bad decision, got in over their head and is willing to blacken their name and their credit for years, in order to get out from under the result of their bad decision. But, I will not applaud the action. From where I stand, if we do, we are no better than the socialists who want other handouts from the government.

I guess it is true. Some piggies are more equal than others.

[heavenlyboy34]

This seems like rationalization to me. The student contracted for a service. It was provided. Now, the student refuses to hold up their end of the contract.

I thought we were supposed to be the ones who were above condoning such things.

I can understand that a student made a bad decision, got in over their head and is willing to blacken their name and their credit for years, in order to get out from under the result of their bad decision. But, I will not applaud the action. From where I stand, if we do, we are no better than the socialists who want handouts from the government.

I guess it is true. Some piggies are more equal than others.
The government at all levels did the same when creating the current national debt. RP has advocated repudiating the national debt. Is there a significant difference between repudiating national debt and student debt to you? The government incurred its debt in exchange for services/products just as irresponsibly as students wasting money on worthless degrees (arguably moreso).

[Seraphim]

The best way would simply be a debt write down that the Universities agree to as well. Taxpayers don't need to be on the hook if it is done properly.


You knew that when you or whomever took out the student loan. You agreed to the terms. Now, you want the taxpayers to pay for your bad decision?

[specsaregood]

This seems like rationalization to me. The student contracted for a service. It was provided. Now, the student refuses to hold up their end of the contract.

I thought we were supposed to be the ones who were above condoning such things.


I hear what you are saying and agree; but fact is, unless we get RP into the presidency and a willing congress then there is no way the american people are ever going to pay off the debt other than through hyperinflation of the money supply or telling our creditors to get lost.

[bolil]

youth vote comment was absolute brilliance.

[heavenlyboy34]

I hear what you are saying and agree; but fact is, unless we get RP into the presidency and a willing congress then there is no way the american people are ever going to pay off the debt other than through hyperinflation of the money supply or telling our creditors to get lost.
Probably right, but I think contraction of the overseas empire and a dramatic drop in the average person's standard of living are more likely than hyperinflation. A rather typical empire collapse. (unless foreigners begin declining dollars or something dramatic like that) JMHO.

[TheDunk]

This could be very bad timing for me. I have over $100k in student loan debt and dropped out of college since I went way over what I had budgeted for. This was for a degree in IT, so useless or not is up to you to decide... But I would consider is useless and frivolous as in IT experience speaks a lot louder than a degree. I learned nothing of value at school, nothing relevant to work. I worked full time in my field from before starting school and transferred two years of credits from a community college. I was told 2.5 years to get a degree and laid out costs. I was billed full time tuition for two quarters that classes to apply to my degree program were only offered part time. When disputing this they said my program was only offered full time and I should have taken general education courses to fill my schedule even though I didn't need the courses or credits to graduate. That was no an option as it would be wasteful of my time, when all through school I was working 50+ hours a day at my job... as in my career job in my field.

The thing that forced me to drop out being billed $21k for a period of six months i was not allowed to take classes, which put me way over budget if I was to pay another $42k+ for another year of tuition to take 7 classes that would take two quarters (they do 4 quarters year round). This was a mandatory "cooperative internship experience" as they put it. I asked about this up front before enrolling, when speaking with their admissions counselor. I didn't want to do an "internship" since I already had the job I wanted. They said it was mandatory but I could stay at my job and either take classes full time and pay full time tuition as normal, or not take classes and just go to work, and not be billed tuition for the "internship" period. They also told me if in my last year I didn't have 4 quarters worth of classes to take at full time enrollment I would be billed per credit instead of the annual tuition fee.

As it turns out theses were lies. When I got to the internship period they billed $21k to the bank my loans were through, against my wishes. They wouldn't let me register for classes as normal. I was told I could register for only one class, but the registration period for internship students was two weeks after they cancelled classes from low enrollment. I fought to try to get them to run the course I needed and had signatures of 13 students also on internship who also wanted to register but couldn't due to their asinine registration policies. With those already registered this brought the enrollment up well above their minimum. They blew me off and would not run the course.

So that's some background for those who like to say everyone with big six figure student loan debt are just irresponsible and getting degrees in useless things that aren't worth anything for a job. Working class people like myself get shafted big time. Most people at school were either from rich families paying their way or very poor and getting a free ride on my tax dollars for being to lazy to get a job and being lucky enough to be born a minority. I never qualified for grants or scholarships because I was not a woman or minority and had a job in my field, making "too much money" which comically enough was never more than tuition costs while I was at school.

So I've been making huge (to me) payments on my loans, which have minimum payments of $1300/mo. Making payments is not a problem though, because I had a decent job before starting school. I am trying to consolidate two of my higher interest loans with another bank to get a better interest rate and longer repayment term for lower minimum payments... Just to cover myself in the unlikely event I find myself out of work. This is almost finalized, just waiting for work to send a document confirming my employment. My belief is not that Obama and his cronies have done this "help students buried in debt" thing that I will be denied the low interest rate, long loan term, and no fees for initiation or early repayment that I've been offered. The costs for me to consolidate these loans will be high, the interest rate will be higher, the loan term will be shorter, and in general it will be more expensive for me, if they'll do it at all or if it even makes financial sense to do after this.

The payments are terribly high compared to my income after taxes, and especially after living expenses for my modest lifestyle. I'm trying to get a third shift job (second job) babysitting servers and working helpdesk (easy work) to help pay off the loans more quickly, but I'm nto sure how wise that would be as it would probably bump me up into the next tax bracket so they would take a lot more of my income and I wouldn't be able to deduct all of the interest paid on these huge loans. I can't get ahead, not because of the banks that made the loans, but because government takes too much and grabs for my wallet every time I try to do something to resolve my financial situation.

Thanks Obama, for once again giving the shaft to this hard working student who had to drop out due to the high cost of college. Thanks for enabling colleges to raise tuition by $10k or more per year by guaranteeing funding and protecting huge unsecured loans by private banks to unemployed kids. If Obama really wanted to help students buried in debt he would end these government financial aid and loan programs, stop backing private student loans, and LOWER MY TAXES so I can keep more of my income to repay these loans and move on with my life.

[Gumba of Liberty]

The solution is removing bankruptcy protection and allowing students to deduct all loan interest from their income taxes.

[HOLLYWOOD]

Government average student loan rate will be 6.8%

If the Wall Street/Bankster/Elitist Puppet wanted to help those with existing student loans, he could of have Bernanke and Tim-May... refi them all at 0.25%... just like the FED does for Banks.

It all bullshit propaganda... and YOU CAN NEVER DEFAULT on your Student Loans... Government has got yah by the balls and they can steal you social security money for repayments.

To Hell with Uncle Sugar

[torchbearer]

my student loans are at 3.5%.

[ZanZibar]

http://www.youtube.com/watch?v=D6kLLFJ-6BE&feature=uploademail

[Maximilian American]

"Obama forcefully orders others to help students with their bad decisions"

If I could change the title this would be it.

[ZanZibar]

http://www.youtube.com/watch?v=2hAT3j_pEoo&feature=uploademail

[Maximilian American]

Obama to offer help for students buried in debt

Hahahahahaha.

Can we retitle this thread truthfully?

Obama repurchases youth vote with your money

Even better title...sorry I was in a hurry and just wanted to post this thread to get opinions.