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Bill Clinton Speech!

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TheDev

Senior member
Jun 1, 2012
206
0
0
Actually they were as low as the 2.3-2.6 range. Prior to changes made in 2005, interest rates were variable and extremely low. Those taking out loans in 2006 to spring 2009 got screwed the most. All the loans in that time IIRC were 6.8. Starting July 2009, the interest rates were lowered by some amount each year until they got down to 3.4% last year. Republicans finally and begrudgingly renewed that for 1 more year. Those rates only apply to loans for first time undergrads. Grad student loans are still pegged to 6.8%. Grad Students also no longer get subsidized loans, effective July of this year.
D:

...

...God I hate Republicans
 

umbrella39

Lifer
Jun 11, 2004
13,820
1,123
126
Welcome to Repub delusional fantasy land where you can see invisible Obama sitting in the chair next to you.
You know you have lost an argument before it has even begun when posting inane photos with every post now... I wish his wheelchair would start working again so he can leave the basement and start living his ostentatious life again...
 

glenn1

Lifer
Sep 6, 2000
25,388
1,013
126
Unfortunately, you dont know what you are talking about/haven't kept up to date.

Under Bush, Congress passed legislation for the PSLF program and the IBR 25 year forgiveness program. This was modified in 2009, in that new borrowers(from 2009 onward) could take advantage of the program at a lower % and lower # of years beginning in 2014. Obama TRIED to change this via executive order. That did not work. It still remains a hodge-podge of 2007 and 2009 legislation. The Department of Ed, is trying to use its administrative rule making powers to accomplish Obamas goal, but that probably isn't going to work either.

Under both plans the 10%/20 years and 15%/25 years, unless you have an extreme debt load(way over $200k) you are paying back all the principle and most of the interest.
Sorry, but I'll trust what the press release linked article from the Department of Education says on the subject rather than you. Current law is already pretty liberal on interest non-recapitalization and loan forgiveness, and Obama wants to make it even more generous. I'll quote directly from the link:

http://www.studentaid.ed.gov/repay-loans/understand/plans/income-based

Advantages of IBR

* Pay based on what you earn—Under IBR, your monthly payment amount will be 15 percent of your discretionary income, will never be more than the amount you would be required to pay under the Standard Repayment Plan, and may be less than under other repayment plans.

*Interest payment benefit—If your monthly IBR payment amount doesn’t cover the interest that accrues (accumulates) on your loans each month, the government will pay your unpaid accrued interest on your Direct Subsidized Loan or Subsidized Federal Stafford Loan for up to three consecutive years from the date you began repaying your loan under IBR.

* Limitation on the capitalization of interest—While you have a partial financial hardship, interest that accrues but is not covered by your loan payments will not be capitalized, even if interest accrues during a deferment or forbearance.

*25-year cancellation—If you repay under IBR for 25 years and meet certain other requirements, any remaining balance will be canceled.
 

Wreckem

Diamond Member
Sep 23, 2006
9,196
632
126
Sorry, but I'll trust what the press release linked article from the Department of Education says on the subject rather than you. Current law is already pretty liberal on interest non-recapitalization and loan forgiveness, and Obama wants to make it even more generous. I'll quote directly from the link:

http://www.studentaid.ed.gov/repay-loans/understand/plans/income-based

Advantages of IBR

* Pay based on what you earn—Under IBR, your monthly payment amount will be 15 percent of your discretionary income, will never be more than the amount you would be required to pay under the Standard Repayment Plan, and may be less than under other repayment plans.

*Interest payment benefit—If your monthly IBR payment amount doesn’t cover the interest that accrues (accumulates) on your loans each month, the government will pay your unpaid accrued interest on your Direct Subsidized Loan or Subsidized Federal Stafford Loan for up to three consecutive years from the date you began repaying your loan under IBR.

* Limitation on the capitalization of interest—While you have a partial financial hardship, interest that accrues but is not covered by your loan payments will not be capitalized, even if interest accrues during a deferment or forbearance.

*25-year cancellation—If you repay under IBR for 25 years and meet certain other requirements, any remaining balance will be canceled.
You obviously haven't played around with the IBR calculators. Under the 25 year plan you will be paying back more than you borrowed. Technically you only pay interest, but the interest will be more than the original principle. Anything that is forgiven is also treated as income under IRS rules and regs. Right now the program isn't that great. That is why they tried/are trying to tweak it.
 
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glenn1

Lifer
Sep 6, 2000
25,388
1,013
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You obviously haven't played around with the IBR calculators... Kick out my loans for 25 years and I would end up having me pay back double of what borrowed...
Your personal circumstances are irrelevant to the truth value of what you said earlier about principal not being forgiven. As I have clearly shown using the very words of the press release and Department of Education FAQ document, interest non-recapitalization and principal forgiveness are real and a core component of what Obama is looking to expand. The fact that it most subsidizes those who choose the least worthwhile and remunerative fields of study is just the crowning insult.
 

Wreckem

Diamond Member
Sep 23, 2006
9,196
632
126
Your personal circumstances are irrelevant to the truth value of what you said earlier about principal not being forgiven. As I have clearly shown using the very words of the press release and Department of Education FAQ document, interest non-recapitalization and principal forgiveness are real and a core component of what Obama is looking to expand. The fact that it most subsidizes those who choose the least worthwhile and remunerative fields of study is just the crowning insult.
Yes the principle is forgiven because you are only paying interest for 25 years.

That interest will be MORE than the principle amount borrowed, in a lot of cases, especially if married, it will be way way more than the original principle borrowed.

You are acting like IBR is some huge benefit. It is not. It doesn't get people out of paying their student loans. If someone takes out $150k. They will be paying back more than $150k. In some cases, not much more. Other cases, a whole hell of a lot more. Not to mention you get one hell of a tax bill for anything discharged.
 
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glenn1

Lifer
Sep 6, 2000
25,388
1,013
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Yes this principle is forgiven because you are only paying interest for 25 years.

That interest will be MORE than the principle amount borrowed.
Are you financially illiterate? Do you not understand what interest non-recapitalization means? Again, here it is in the plain English of the DoE explanation; hint - it means if your payment doesn't cover the interest, it's not added to the principal:

Limitation on the capitalization of interest—While you have a partial financial hardship, interest that accrues but is not covered by your loan payments will not be capitalized, even if interest accrues during a deferment or forbearance.
 

Wreckem

Diamond Member
Sep 23, 2006
9,196
632
126
Are you financially illiterate? Do you not understand what interest non-recapitalization means? Again, here it is in the plain English of the DoE explanation; hint - it means if your payment doesn't cover the interest, it's not added to the principal:

Limitation on the capitalization of interest—While you have a partial financial hardship, interest that accrues but is not covered by your loan payments will not be capitalized, even if interest accrues during a deferment or forbearance.
You actually think someone on IBR is going to stay at the same wage for 25 years? People don't stay in partial financial hardship status. Most people will have interest recapitalization under IBR. Run the numbers on one of the IBR calculators that factors in wage growth.

Will some people get off paying less than what they borrowed? Yeah. Will most? No. Most people with $150k+ in loans have advanced degrees and even if they start out at $40k/year, they will easily reach much higher during the next 25 years. Get married? Spouses income counts as well. IBR won't be a boon for most people. Not unless they have severely depressed wages for 25 years and stay single.

Fortunately for me, I fall under the PSLF program...
 
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jackschmittusa

Diamond Member
Apr 16, 2003
5,979
1
0
Ol' Bubba finished with both guns smoking and all the chambers empty!

The man did a hellova job. Said a lot that needed to be said.

Romney probably spilled his demitasse and Ryan probably popped a vein in his neck.
 

OrByte

Diamond Member
Jul 21, 2000
9,292
120
106
LOL at the fanboiz! :awe:

It was a defense speech, it was a history speech, it was Clinton explaining Obama's failures.

Obviously Romney/Ryan have gotten under the Dems skin big time, they can't even come up with a coherent vision for the future from the guy that used to define the future for the Dems.

Oh well, Obama is on tomorrow. Hope I can stay awake to listen to part of that one.

wow..uh...that was kinda rambling....but I can understand. Clinton epicness does that to repubs.

you need a reboot. :)
 

Jhhnn

No Lifer
Nov 11, 1999
61,515
13,519
136
Clinton's speech was magnificent, devastating.

If Romney can win after that, America will have succumbed to madness.
 

glenn1

Lifer
Sep 6, 2000
25,388
1,013
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You actually think someone on IBR is going to stay at the same wage for 25 years? People don't stay in partial financial hardship status. Run the numbers on one of the IBR caculators.
Yeah, or just as likely their wages could go down, reducing the payment and increasing the eventual write-off. Even better, their income could go to zero, which by the program's formula means their payments would be 15% of discretionary income (which can't exceed the 10-year standard repayment amount) which of course would also be zero.
 

Wreckem

Diamond Member
Sep 23, 2006
9,196
632
126
Yeah, or just as likely their wages could go down, reducing the payment and increasing the eventual write-off. Even better, their income could go to zero, which by the program's formula means their payments would be 15% of discretionary income (which can't exceed the 10-year standard repayment amount) which of course would also be zero.
And what is more likely? Not what you just said. Atleast not for the majority of those on IBR.

Next you will want to do away with disability forgiveness. Hell while you are at it lets transfer the debt of a deceased to their family.

Republicans have caused this mess. They are the ones that thought tuition deregulation was such a brilliant idea. Then they had to go and raise interest rates on student loans.

Outside the US, you know what they pay? Most pay $0. I am not saying we should that, but its absurd that govt backed student loans have interests rates more than 2.5%/the cost to service the loan.
 
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abaez

Diamond Member
Jan 28, 2000
7,158
1
81
Yeah, or just as likely their wages could go down, reducing the payment and increasing the eventual write-off. Even better, their income could go to zero, which by the program's formula means their payments would be 15% of discretionary income (which can't exceed the 10-year standard repayment amount) which of course would also be zero.
Just as likely? How many people out there do you think start at 40k and then go down from that after 20 years?
 

quest55720

Golden Member
Nov 3, 2004
1,344
0
0
I love to Bill out there doing his thing. It is to bad the party he built was taken over by Pelosi. I would vote for Bill in a second if I had the chance. He will probably be the last fiscally responsible president in my life time.
 

glenn1

Lifer
Sep 6, 2000
25,388
1,013
126
Just as likely? How many people out there do you think start at 40k and then go down from that after 20 years?
Plenty. Do you want to write off a couple hundred grand in student loan principal and interest whenever a college educated woman decides to drop out of the workforce to become a stay-at-home mom?
 

CptObvious

Platinum Member
Mar 5, 2004
2,500
1
76
Ironically I thought Clinton's great speech highlighted Obama's shortcomings in engaging with people and selling his policies to voters. I always felt Obama had strong policies but the stiff way they were presented left room for attacks by fear mongerers. Obama needs to study this speech to improve on connecting with voters, as well as not be afraid to call out bullshitters like Paul Ryan by name.
 

sandorski

No Lifer
Oct 10, 1999
68,019
3,081
126
His voice is beginning to show the signs of age, but his passion is as vibrant as ever.
 

berzerker60

Golden Member
Jul 18, 2012
1,233
1
0
Plenty. Do you want to write off a couple hundred grand in student loan principal and interest whenever a college educated woman decides to drop out of the workforce to become a stay-at-home mom?
If she's single, she's not exactly in a great position out of work with kids. If she's married, the husband or wife's salary counts as hers.
 

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