Obama to unveil bail out on student loans

[Howard]

Education is needed for everyone. IF you no no skills, you wont get a good job. Yes the current setup is broken, but education can be made far more affordable than it is now.

Postsecondary isn't the only way to gain valuable skills.

Also, what the hell do people do with literature/art/history/psychology/etc. degrees?

 

[Infohawk]

Also, what the hell do people do with literature/art/history/psychology/etc. degrees?

I'm not sure if you're being serious but this comes up way too much on this tech forum. It's not like people with liberal arts degrees are all unemployed. Most of them are employed. In some cases their degrees are directly relevant. The entire economy doesn't revolve around iphones. People work in the film industry, publishing, graphic design, etc where an arts degree is useful. Generally speaking though, a liberal arts degree is supposed to teach critical thinking and communication. The only reason young people aren't getting jobs with these skills is because the job market is so bad. The market wouldn't be any better if all of a sudden 90% of students became electrical engineers. None of this will stop people on this forum from shrieking about liberal arts degrees though.

 

[ElFenix]

define 'discretionary'

 

[sactoking]

Pssh, that's nothing. As a public servant on the IBR plan, anything I've not paid off after 120 months is forgiven.

Thank you Congress of 2007.

 

[Throckmorton]

IBR??

 

[sactoking]

IBR??

Income-Based Repayment

 

[Generator]

Things are really starting roll now. You're hearing buzzwords like deleveraging, debt jubilee, abolish the debt, student loan write down, mortgage refinancing. The past 30 years are built on a foundation of debt and greed. Your job and your skills are tied to this illusion economy. That last thing people dare to want is a free market. You be in squalor within weeks.

Abolish the trumped up debt or suffer a lasting depression. What is more important...stupid fucks pay their slave income to these loans for their whole lives or them having some money to buy the shit that your job produces. Make the choice the government gets the money directly or you get the money directly. Either way two things remain constant the people will always be stupid and the government will always get theirs in the end. It must be frustrating to be a bunker brain, because no matter how deep you dig into bunker...society again and again will not let you go. We are connected forever.

 

[a777pilot]

Oh, those poor students. If they were smart enough to get into a college, one would think they would be smart enough to figure out how to pay for it.

I played all my student loans off. I see no reason why this current corp of student can't do the same thing.

Then I understand....

Bobo, the Post Turtle, is basing his re-election campaign on two main issues: 1. Racism. and 2. Transfer of wealth. This student loan issue is just a part of that strategy.

 

[Fenixgoon]

why is it that the people who make poor decisions always get the benefit, but the responsible people get fucked?

<--- paying student loans back faster to reduce interest. can do so because he got a degree that actually is worth something.

 

[Fenixgoon]

why is it that the people who make poor decisions always get the benefit, but the responsible people get fucked?

<--- paying student loans back faster to reduce interest. can do so because he got a degree that actually is worth something.

 

[Wreckem]

I am confused.

Since summer 2009, they have had this in some form. They keep tinkering with it.

It started out 25 years @15&#37; of discretionary income
Then when Obama took over it became 25 years @ 10% of discretionary income
Now, its going to be 20 years at 10% of discretionary income.

[edit]: I see the 25/10 was never passed. This 20/10 already passed, but doesn't take effect until 2014(so it would 240 payments from 2014). Obama is trying to move the effective date up to 2012.

Did they do away with tax payments on the loan forgiveness? Previously, you had to pay taxes on what was forgiven.

The only plan that didn't require you to pay taxes on the amount forgiven was the 10 year public service program.

If you run the numbers, the only plan that is really beneficial is the 10 year public service plan, where you don't come close to paying the principle.

On the current 25 year plan you typically pay, but it all depends on income and loan amount, the entire principle and 30% of the interest accumulated over the 25 years and the fed forgives the other 70% of interest. But then you are charged taxes on that 70% that was forgiven. Its no where near a good deal. Its the option of last resort(other than defaulting and never paying).

The 20/10 plan is quite a bit better than the 25/15 plan was. But I believe you still pay taxes on that amount forgiven.

On the other hand, the 10 year public service program is a steal. You won't come close to paying the principle, and the fed covers the remainder of the principle + entire interest, and you don't get hit with taxes on the forgiveness.

 

[Wreckem]

define 'discretionary'

The law defines it as anything above the poverty line.

Currently the poverty line is $16355 for a single person. So the payments are 10&#37; of anything over $16355

So if a single person made $40000 they'd pay $197 at most per month. No matter how much in loans they had.

 

[Wreckem]

Oh, those poor students. If they were smart enough to get into a college, one would think they would be smart enough to figure out how to pay for it.

I played all my student loans off. I see no reason why this current corp of student can't do the same thing.

Then I understand....

Bobo, the Post Turtle, is basing his re-election campaign on two main issues: 1. Racism. and 2. Transfer of wealth. This student loan issue is just a part of that strategy.

There is over $1trillion in outstanding student loans.

What do you plan to do when the masses start defaulting? Its the next bubble. The government needs to try and prevent it from bursting. If it means forgoing some interest, so be it.

 

[Wreckem]

Lets first stop matching tuition costs with federally back loans! They increase together in lockstep as .edus have figured out this great way to get revenue.

There was a study done that said UT austin could cut it tuition in half if the lowest 80% of profs were are productive as the top 20% of profs. There is plenty of fat to be cut in academia.

That study is junk if it is the one that was conducted by one of Perry's lackeys. Basically professors who taught advanced classes that had 35-50 students weren't considered productive but people who taught first year classes were with 350+ students were.

 

[Wreckem]

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.

Thats not the right formula.

 

[Wreckem]

I'd love to go back to the price of an education back in the 1980s/early 1990s. But fat chance that will ever happen.

If you are over 40/50 and educated, you got a hell of a bargain compared to those getting their education today.

And tuition increases are also caused by cuts by state governments. At my school, most of the tuition hikes since 2001 are directly related to Texas slashing the money it gives the school.

 

[Throckmorton]

Thats not the right formula.

What is the right formula?

 

[CrazyAznDriver]

can my wifes 200k medical school loans be forgiven?

 

[Wreckem]

What is the right formula?

It take that back, its the right formula. I failed to consider wife/kids.

Here is a handy chart of federal poverty levels.

If you are single, 150&#37; of the poverty level is $16335 as stated in the article.
If you are married, 150% of the poverty level is $22,065.
IF you are family of 4, 150% of the poverty level is $33,525.

http://www.usac.org/_res/documents/li/pdf/Income_Requirements.pdf

But if you are married your spouses income is included in repayment computations.

IBR for non public service is meant for two categories of people. People who are relatively poor or people with high levels of debt.

 

[Wreckem]

can my wifes 200k medical school loans be forgiven?

Yeah, and probably under the IBR 10 year loan forgiveness program for those working in public service. Public service is broadly defined and includes professional medical practitioners.

 

[Throckmorton]

It take that back, its the right formula. I failed to consider wife/kids.

Here is a handy chart of federal poverty levels.

If you are single, 150&#37; of the poverty level is $16335 as stated in the article.
If you are married, 150% of the poverty level is $22,065.
IF you are family of 4, 150% of the poverty level is $33,525.

http://www.usac.org/_res/documents/li/pdf/Income_Requirements.pdf

But if you are married your spouses income is included in repayment computations.

IBR for non public service is meant for two categories of people. People who are relatively poor or people with high levels of debt.

I'm single so I should have used $16335. That's means my "discretionary income" is $12000. So I have to pay $1800 which is about what I pay on my loan as it is. Thanks for nothing, Obama. In reality my discretionary income is negative.


BTW, I'm in public service so why have I never heard of this IBR stuff?

 

[CrazyAznDriver]

Yeah, and probably under the IBR 10 year loan forgiveness program for those working in public service. Public service is broadly defined and includes professional medical practitioners.

I'll kiss you if this is true... she is a trauma surgeon so that fits fairly good into 'public service' I'd think.

 

[Throckmorton]

Does it only apply to Federal loans? That's what the website implies...

 

[Wreckem]

I'm single so I should have used $16335. That's means my "discretionary income" is $12000. So I have to pay $1800 which is about what I pay on my loan as it is. Thanks for nothing, Obama. In reality my discretionary income is negative.


BTW, I'm in public service so why have I never heard of this IBR stuff?

IBR was passed in 2007, with a start date of July 2009(you either had to originate loans starting after July 2009, or consolidate loans that existed prior).

IBR has two plans the 10 year public service plan and the 25 year plan. Obama and Congress changed the later to 20/10 last year with an effective date of 2014. Obama is trying to get that changed to 2012.

How "good"/"effective" IBR plans are depend on income level and loan amounts.

 

[Wreckem]

Does it only apply to Federal loans? That's what the website implies...

Yes, they have to be GradPlus, Perkins, Subsidized, or Unsubsidized loans.