Obama to offer student loan relief

Associated Press ^ | October 25, 2011 | KIMBERLY HEFLING

[WhyisaTexasgirlinPA]

The loans you are referencing were a huge portion of the loans for students - at the time private banks were handling 80% of student loans, including Stafford Loans, which is why I stated the government was not set up to handle 100% of the business. They involved several companies such as Great Lakes to handle the administration of the loans. Everyone is given the opportunity to consolidate loans already so bammy saying he is making this great gesture is just more of his hot air, and there is already a provision in place called “Income Based Repayment” that allows for future community organizers to basically not repay loans. All they have to do is run up their loans then accept a low paying job and yearly file showing they can only pay $50 a month and after 20 years their loans disappear too.

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[merrylu]

He is doing this by executive order right?

WTH are our reps in congress and why isnt anyone saying anything about this? you never hear a peep out of them anymore...why do we even pay them?

they are worse than useless

Maybe they are afraid of being called racist-so much they will sacrifice the country in order to avoid a label that isn’t even valid to protect their career.

idk anymore

PTOOEY

[Painesright]

The student loan program that King Obama announced this week is typical vote-buying welfare that invites abuse and fraud.

True story. I struck up a conversation with a woman in an airport while waiting for a flight. The economy and the plight of recent college graduates came up. She openly (without a hint of shame) told to me how her daughter plans to take advantage of Sugar-Daddy Obama’s generosity.

Her daughter is majoring in a graphic design program at an expensive CA university and already has $56,000 in student loans.

Realizing that the labor market is depressed, instead of graduating, she is staying in school and living off student loans as long as she can. Which is what millions of others will do too.

She has no incentive whatsoever to limit how much debt she racks-up. She knows that she will not be held accountable to pay it back. Why stop at $56,000? $100,000! $150,000! $200,000! Sky’s the limit when you are spending free money!

After 20 years of repaying not much if any of her student loans, her debt will be forgiven.

How neat! Like free money or something!!

She added insult to injury by telling me that in her daughter’s line of work, many times she will be paid cash or on a 1099/self-employed basis.

So, since her daughter doesn’t plan to show much income tax on her tax returns anyway, the 10% of discretionary income will be practically 0. She plans to pay back almost ZERO!!

I shudder to think that we already have $1 trillion in student loan debt. With a government give-away like this one, we could easily double that to $2 trillion. What happens when the gov’t has to start forgiving 100s of billions in dollars in student loan debt?

Who pays for it? The money was spent. Somebody expected to get paid back. Who loses and/or who pays it if not the student?

That is exactly how the system will be gamed.

Those brainwashed kids standing behind Obama and cheering in front of him have idea how quickly he is destroying their country. So sad.

Easy, cheap, government-guaranteed money caused the housing bubble. Now it has caused a higher education bubble.

This is the vote-buying politicians’ way to keep the bubble inflated and keep the money flowing to one of their best mouth-pieces... liberal professors.

And the politicians won’t stop bribing the people with their own money until we are Greece on steroids.

I am profoundly sad to say that this woman was NOT an Obama-supporting liberal.

That is what happens when a country goes Socialist.

Everyone takes as much as they can, until there is nothing left to take.

As Prof. Alexander Frazer Tytler supposedely said back in the 1800’s (paraphrasing): A democracy cannot exist as a permanent form of government. It can only exist until the voters discover they can vote themselves largesse out of the public treasury. From that moment on the majority always vote for the candidate promising the most benefits from the treasury with the result that democracy always collpases over a loose fiscal policy, always to be followed by a dictatorship.

That describes Greece today. It could very well be America soon.

[Texas4ever]

What about the loans of soldiers who joined in order to afford college and have tuition paid off in exchange for their time in the service? You going to give back the years they lost owing the Government for their education?

They chose to do something not to owe, while others sat in classrooms with their paid laptops, iphones and dorm rooms racking up loans they knew they would have to pay....they get a break....but our sons go to war to pay off their education and get what! WHAT!!!!

SOMETHING IS VERY WRONG WITH THIS PICTURE.

I have a friend who's son could not afford to go to college they knew they could not pay the loans back so her son is in the Army, college is paid for, but he is in Afghanistan

This is pathetic. Most of these kids have money, their parents have money, they just chose to go to the most expensive college to live their life of prestige...now they protest against the people they wanted to become....and now they expect us to pay for it? How does $100,000 dollars in student loans for an African studies degree make sense to anyone! Can someone tell me what you do with a degree in African studies or Woman Studies. Where are peoples brains? do parents really sign for these?

[scrabblehack]

Actually there is a student loan program that charges a percentage of future earnings; this may be it.

Now the relevant question is, “Does charging 10% of discretionary income rather than 15% actually repay the loan? Surely there is a percentage of discretionary income below which the loan does not get repaid.

IF this is the program in question, it depends on how much graduates are actually earning, and how “discretionary” income is computed.

[scrabblehack]

A buddy of mine who graduated a year ahead of me said when he went to buy a house, his student loan didn’t show up on his credit report. He pointed that out, thinking that the loan officer would take that into consideration. The loan officer told him it didn’t make a difference.

Conclusion: ONLY the late payments show up on the credit report. Successfully repaying the loan with no late payments does NOT increase your credit rating (at least it didn’t with my buddy). It showed up on mine but I did have a late payment or two.

[PeterPrinciple]

Perhaps this was part of his plan all along - banks used to provide 80% of student loans until congress voted to take them over completely. Consider that no payments are made until 6 months after graduation - that is a lot of money going out to schools with ZERO coming in for 5 or 6 years.

---

Just a little student loan history. They were first called NDSL (National Defense Student loans) during the Vietnam war years in the 60’s. In the 70’s they were called National Direct STudent Loans. In the 80’s they were moved to banks.

[WhyisaTexasgirlinPA]

Thanks for the info. Another little tidbit - along with the easy housing loans, student loans (or parent loans to be exact) were so easy they didn’t say no to anyone. As long as you were not in default, you could/can continue to borrow at will. The difference is that the PLUS loan (parent) begin repayment after 6 months from disbursement, not after graduation.

[DustyMoment]

According to Rush, today, Odum-dum hasn’t so much as introduced a bil in Congress that approaches anything like this “plan”.

As we all know, this is just another empty “promise” to buy student votes next year that increases America’s indebtedness and screws the taxpayers that much more.

But, I have a simple solution to this problem. (Watch this!) If you can’t afford your college education and won’t work your way through school (pay as you go), then DON’T GO!!!! The REST of AMERICA is NOT responsible for paying for your degree in “WOMEN’S STUDIES”!!!!!

See? I told you I had a simple solution!

[scrabblehack]

Apparently this is not the fraction-of-income repayment scheme. So you’re right — it is a worse deal for the borrowers over the long run.