Why make government the prime source for student loans?
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/05/AR2010030502972.html
Obama Breaks Down Student Loan Overhaul
http://whitehouse.blogs.foxnews.com/2010/03/30/obama-breaks-down-student-loan-overhaul/
He will also talk about the provision’s less controversial expansion of Pell Grants, as well as supporting historically black and minority institutions and caps on student loan repayments.
According to the White House, “New borrowers who assume loans after July 1, 2014, will be able to cap their student loan repayments at 10 percent of their discretionary income and, if they keep up with their payments over time, will have the balance forgiven after 20 years.”
(Excerpt)
So basically, you need to make sure you buy or rent a living space expensive enough to maximize your non-discretionary spending, so you make the absolute minimum student loan payments for 20 years. Then the debt disappears!
Or more acurately, your debt gets paid by other Americans, which is “free money” to you.
And again I say, those of us who pay off our loans and debts sure look like chumps.
These investments complement President Obama’s broader agenda for higher education and will help us reach his goal of America having the highest proportion of college graduates in the world by 2020.
http://www.whitehouse.gov/sites/default/files/10326-higher-ed.pdf
(with absolutely no thought given to QUALITY)
Public service workers such as teachers, nurses, and those in military service will see any remaining debt forgiven after just 10 years.
You don’t get to calculate your own discretionary income. It’s just a number set by the government based on your faimly size.
And a waitress can pay off a $12,000 loan. Bet she’s got a car loan for more than that. People need to suck it up and pay their debt!