Skip to comments.Pell Grants Cut
Posted on 11/30/2012 9:36:53 AM PST by knarf
I didn't vote for that ...
Elections have consequences...own it Obamanites!
Of course, the Federalists who run the near government monopoly on student loans, will offer to make up the shortfall by letting students borrow more.
Just when both of my kids are entering college.
Wonder what would happen if I accuse my in-laws of taking away my kids college education. That should make for an interesting conversation over Hannukah dinner.
This should make you feel good that you will be paying for Obama voters college tuition. Sarc..
Obama Student Loan Forgiveness
About Obama Student Loan Forgiveness
Earlier in his presidency, President Obama announced a student loan forgiveness plan one that has become known as the Obama student loan forgiveness program- for students who were unable to complete their student loan payments or had already completed a significant part of their payments for a long period of time. The Obama student loan forgiveness program automatically clears the remaining debt of anyone who has made regular payments on their federal student loans for a minimum of twenty years. People in military service or who are working in other government departments might have their debts cleared even earlier than that as per Obama Student Loan Forgiveness.
Understanding Obama Student Loan Forgiveness
President Barack Obama will undoubtedly be remembered for his healthcare reform legislation that was recently passed by Congress. However, there is another program that is much less well known that could affect far more people directly. This is the Obama student loan forgiveness program.
Under the terms of this program, anyone who makes his monthly payments for twenty years after leaving college is eligible to have his/her remaining balance forgiven. At least, this applies to anyone with Federal Direct loans, Stafford loans, and Perkins loans. Those who take out their loans from private lenders such as Sallie Mae are still responsible for repaying their loans in total.
Individuals who spend ten years in public service positions become eligible to have their loans forgiven at that point rather than having to wait the full twenty years. This means that their debt is forgiven in half the time and their debt reduced significantly sooner.
It is also a part of the plan that monthly payments be capped at a level of 10 percent of the money that left over when all taxes are paid and basic necessities taken care of. This cap has been at 15 percent, which takes a lot more money out of the pockets of citizens and out of the economy.
There are also programs in place that allow teachers to work for just five years in elementary or high schools that have been designated as low income schools by the Dept. Of Education. This applies to FFEL loans and to Direct loans.
Military personnel are also able to achieve forgiveness for their student loans if they have a degree. This program works for members of all five branches of service, including the Coast Guard and Reserves.
A final option is to apply for income based repayment terms. While it is probably best to sign up for this early in the life of the loan, older loans may still qualify for this lower payment plan. Of course, the clock starts all over when one signs up for this option. That means that someone who has worked in public service for eight years and signs up for income based repayment must work another ten years in public service instead of the two he/she would have had left.
Student loans are a fact of life for the vast majority of college graduates. This is especially true of those who go beyond a bachelors degree and take graduate level classes. Sadly, the much higher pay they were promised if they pursued their education to its fullest has not materialized. The economic recession has made this fact even worse for most.
The Obama student loan forgiveness program is intended to help ensure that individuals do not wind up broke because they chose to continue their education. While nobody will see his/her loan just disappear overnight, payments have been lowered and the time shortened that one must pay before the remaining balance is forgiven. Public service workers and teachers are eligible for forgiveness at much faster rates due to the nature of their jobs.
They’ll blame it on the Republican Congress. That’s what my Dem sister does. And you can bet that’s what Obama and his minions will do too.
Pell grants and other financial aid have been the main root cause of tuitions outstripping inflation, more so than even healthcare.
The country’s libido is flagging with Obama as president.
Unless you make about 20K a year, your kids wouldn’t get Pell grants. Everyone is eligible for Stafford Loans, which are deferred until about 6 months after you graduate. Stafford Loans are graduated amounts based on your year in school. First couple of years you get something around $2500 a year, then each year after that you are eligible for about $5500 per year. But Pell Grants are income based and the only way around that is to wait until you are 24 (I think that is the age) so you can be declared not a dependent on your parents. Then you can claim to be “poor” and get food stamps, housing allowance and Pell Grants and basically go to school for free.
Good. They were a terrible idea to begin with.
Thank you all very much!!
Woo hoo!! And now less than $1.9k to go!! We can do this.
Let's put this baby to bed!!