Obama to unveil bail out on student loans

[JEDI]

http://money.cnn.com/2011/10/25/news/economy/Obama_student_loan/index.htm?iid=HP_LN&hpt=hp_t2

college graduates who enroll get charged 10% of their monthly discretionary income to pay off loans, with debt forgiven after 20 years.

The bright spot for the unemployed is that the monthly payments are based on any income above 150% of the poverty line. For a graduate living alone, the payments would be on 15% of any dollars made above $16,335, based on the 2011 poverty line.

And unemployed graduates with no income would owe no monthly payments on their student loans, education experts say.


god damn it.. more of my tax $ given out!

i paid off my student loans.
i was smart enuf to not borrow waaaay more than i would earn in the degree i was persuing.

now i'm going to be paying off the loans of stupid History majors who borrowed $100k at a $30k/yr school.

😡

 

[TheVrolok]

Damnit, I don't want word getting out about the income based repayment program.. I was hoping there'd still be free money available when I finish school in a year and a half. 🙁

 

[chucky2]

Got to ensure the most easily duped, aka students, turn out to vote and vote for BHO. Nice vote buying strategery...think of the kids!!!

 

[xBiffx]

Combine this with the housing proposal and I am starting to wonder if I'm doing it wrong. Knew I should have taken that spot in mom's basement. Was bound to pay off at some point. :twisted:

Got to get those votes somehow though.

 

[MagickMan]

Money? What money? Oh, you mean the Chinese money we borrow? I thought you meant money that we are actually going to pay back some day. Whew!

 

[Attic]

Glad he's bringing focus to the issue with student loan debt.

I'm not a fan of this particular solution though.

 

[Jaepheth]

Maybe student loans need to be underwritten based on the student's major and academic performance. (To measure future earning potential)

 

[actuarial]

This doesn't seem like a well thought out idea.

I wonder what kind of bad choices you have to make to not have paid off your student debt after 20 years while paying in 15% of your above poverty line income.

OSAP has some kind of safety net, but nothing like this. With our student loans if you don't make enough you can get reduced payments (down to zero depending on income), and interest relief, but the loan never goes away.

 

[Unheard]

It's only money right? BO will just keep printing it to get us on the up and up.

 

[Patranus]

Good luck with that.

 

[Ausm]

President Obama is expected to announce measures aimed at helping college graduates climb out of their student loan debt hole.

Did the chick who wrote this article get all the details directly from the Whitehouse before President Obama unveiled his plan to the Country?

 

[Engineer]

Getting pretty sick and tired of this "bailout" shit.

 

[Ausm]

Getting pretty sick and tired of this "bailout" shit.

President Obama is circumventing the Congress and the Republicans are having a hissy fit...que whining from the Tan man and the Chinless Fuck McConnell in the next news cycle 😉

 

[PokerGuy]

Alright boys, fire up the printing presses, we're once again going to bail out those who make poor decisions.

 

[Throckmorton]

Poverty is $22350, so 150% is $33525. I make $36500, so my "discretionary income" is about $3000. I get to pay $450 a year? That basically gives me $1000 extra to live on. It would make a big difference.

 

[Infohawk]

This is the problem with the Obama. It's always a band-aid style fix. Much like medical care, the real problem is that education costs are too high because people are paying for gyms and fancy lawns not to mention living away from home unnecessarily in some situations. There needs to be pressure on institutions to lower their prices. This will not do that. It will in fact make it worse.

And people who paid their loans off responsibly and who made sacrifices to do so are penalized. In retrospect shouldn't everyone have gone to the most expensive school possible and just paid the minimum amount on it?

 

[woolfe9999]

This is the problem with the Obama. It's always a band-aid style fix. Much like medical care, the real problem is that education costs are too high because people are paying for gyms and fancy lawns not to mention living away from home unnecessarily in some situations. There needs to be pressure on institutions to lower their prices. This will not do that. It will in fact make it worse.

And people who paid their loans off responsibly and who made sacrifices to do so are penalized. In retrospect shouldn't everyone have gone to the most expensive school possible and just paid the minimum amount on it?

How do you "pressure" the institutions to make them lower tuition?

 

[Patranus]

How do you "pressure" the institutions to make them lower tuition?

By limiting loan funding.

No reason the government should back a $160,000 student loan for someone to go to a private school and major in art history or dance.

Government backing leads to irresponsibility.

 

[sMiLeYz]

By limiting loan funding.

No reason the government should back a $160,000 student loan for someone to go to a private school and major in art history or dance.

Government backing leads to irresponsibility.

LOL! Where do you get this idea that limiting funding to Universities will make tuition lower?!

Ever heard of private schools?

 

[TheVrolok]

By limiting loan funding.

No reason the government should back a $160,000 student loan for someone to go to a private school and major in art history or dance.

Government backing leads to irresponsibility.

Limiting loan funding will pressure institutions into lowering tuition? Or will it simply shift the student population from a mixture of those with loans and those without loans, to a higher percentage of those without loans? All you end up with is more kids from wealthy families in college at a lower educational standard than those without wealth as the poorer students compete more heavily for loan money. See how theoreticals work?

 

[drebo]

the real problem is that education costs are too high

No. The problem is the perception that every should go to college.

Way too many of my peers have no job prospects because they major in things like Marine Biology in Reno, NV (not a drop of fucking water anywhere near there) and so they just continue borrowing money to continue going to school because there's nothing else for them to do.

Or instead of getting a job out of college, they get these grand ideas about going to grad school and getting a masters in Vocal Performance. Really?

People are using school as an excuse to avoid getting a job. That's a cultural problem that has nothing to do with how expensive colleges are.

 

[TheVrolok]

LOL! Where do you get this idea that limiting funding to Universities will make tuition lower?!

Ever heard of private schools?

Some people don't think much beyond the absolute basics of supply/demand. ie: If there is less loan money, fewer students can go to school, therefore schools must lower tuition to fill their classes. In reality, it is far more complex than if A then B.

 

[Ausm]

This is the problem with the Obama. It's always a band-aid style fix. Much like medical care, the real problem is that education costs are too high because people are paying for gyms and fancy lawns not to mention living away from home unnecessarily in some situations. There needs to be pressure on institutions to lower their prices. This will not do that. It will in fact make it worse.

And people who paid their loans off responsibly and who made sacrifices to do so are penalized. In retrospect shouldn't everyone have gone to the most expensive school possible and just paid the minimum amount on it?

Working with the Republicans in the 112th Congress do you realistically thing anything more substantial would occur?

 

[Howard]

Some people don't think much beyond the absolute basics of supply/demand. ie: If there is less loan money, fewer students can go to school, therefore schools must lower tuition to fill their classes. In reality, it is far more complex than if A then B.

So what would actually happen?

 

[TheVrolok]

That's a cultural problem that has nothing to do with how expensive colleges are.

Much (most, all?) of our fiscal woes can be attributed to social problems; a sense of entitlement, a lack of personal responsibility, etc. Though, how does one separate these social/cultural issues from fiscal ones? How does one go about instituted nationwide cultural/social change?