Obama Breaks Down Student Loan Overhaul (Student loans will be forgiven!!!!)

Foxnews ^ | 3/30/2010 | Staff

[Red in Blue PA]

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."

[quesera]

Buying votes. Isn’t that illegal?

pends on how you do it.

[b4its2late]

K. I’ll mark that for future reference... LOL

[listenhillary]

They know the older students are already facing reality and are unlikely to vote for more socialism. He needs the young people’s votes.

4 more years of indoctrination for a greater number of mind numbed robots.

Unfunded mandate for states as their colleges will be filled to the brim and may be forced to build more. It will break their budgets.

Huge bonus for on-line colleges as they can rabidly absorb massive numbers of students.

College degrees will now mean even less if your dog and cat can sign up, get loans and get a degree.

Colleges create workers, not entrepreneurs. Where will these people work?

[greyfoxx39]

Pandering for the youth vote, giving up on the white man vote as in "Stick it to 'em".

Mugabe has nothing on Obama for stupidity.

[rlmorel]

This destruction and deconstruction of all we hold dear is no accident. With each passing day, I am thinking:

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

Cloward-Piven.

And my invocation of Cloward-Piven isn’t rhetorical anymore.

[Jim Noble]

So if I understand this correctly, young people are now economically encouraged to stay in an expensive out-of-state or private college as long as they can, and rack up a massive student loan balance. When they graduate, they will basically be paying just interest because of the 10% cap, and that interest will be tax-deductible. After 20 years, the taxpayers will pick up the difference (probably through more debt pile on taxpayers).

Well, yes, there's that.

But the bigger thing is that all restraints on tuition increases are now removed. Private colleges should, and will, double and triple their tuitions as soon as this goes into effect.

Unemployment among African-American studies professors and critical legal theory types will go to zero.

I'm already thinking of a new career in Oppression Studies.

This is a bailout for a failing model of higher education. The effects on students are much less important.

And, oh, dare I ask? I suppose that only the poor and historically underrepresented minorities will be eligible for these loans?

[mojitojoe]

That video is one of the most disgusting things I’ve ever seen. It made me sick the first time I saw it, it still makes me sick. Freddie Freeloaders, all of them.

[Oceander]

Gee, ain't that sweet. Who's gonna be paying for those loans - oh yeah, that's right, the American Sucker, I mean taxpayer.

[divine_moment_of_facts]

I’d like to know who paid off his student loans.. If he even had student loans to begin with.. Why does he get away with hiding such important information?

[mojitojoe]

If you read his book, then you know how absolutely obsessed he is about race. He hates that he is a mulatto. HATES it. He is determined to make whitey pay.

[PapaBear3625]

A doctor could get out with $400,000 in loans, get a job at a clinic paying $40,000 and then consult on the side. His discretionary income would come out of the $40,000. He could be making $300,000 consulting.

A woman could get a degree in Fine Arts, and then go live with a guy and be an unmarried "housewife". As her discretionary income is zero, she would pay nothing.

[Bubba Ho-Tep]

Who decides what is discretionary?

It's calculated as Adjusted Gross Income above 150% of the official poverty line in your region for a family your size.

[LambSlave]

The disgusting thing is, this was already signed into law right under our noses last summer. Google Income Based Repayment, signed into law 1 July, 2009. All the current legislation does is (i) Change cap from 15% of discr income to 10% and (ii) change 25-year forgiveness to 20-years.

[mojitojoe]

Yea, so would I.

[NoExpectations]

I overheard a conversation at the public library yesterday between a table of minority “students”. They were talking about how much gov’t money they were getting for college. One guy got less than the girl and he said “hey, I deserve it!! My life is just as messed up as yours. I want my money too! I’ve got to finish my drug rehab first, and then I’ll go mo’ money.” Then they discussed the fact that you get grants and no loans, because heck, you’ve got to pay those back! “No way am I going to pay back any money!!”

[folkquest]

doomed!

[arealconservativeforachange]

Why of course, whatever they vote for!

[demshateGod]

Did you account for interest.

[Jakarta ex-pat]

"It’s on purpose as well."

Of course it's on purpose!

There is NO nation on earth that has a more loathing head of its nation as BO. I have more love in my little finger for America than he does his whole body, and I'm not even American.

[The Pack Knight]

And of course us old borrowers who followed the rules get screwed.

Seriously. I wonder if we can re-fi our old loans after 2014. I don't see here if they're going to lower the interest rates on the loan. Right now, direct loans from the federal government have no better interest rates than what I'm paying now with my (semi-)private loans.

If they aren't offering a better interest rate, then I'll stay with my current lender anyway. All things being equal, I'd rather have a private entity than the U.S. Government as my creditor if money gets tight.

From what I'm seeing, they aren't changing the fact that student-loans are non-dischargeable in bankruptcy. Wasn't that one of the more controversial aspects of BAPCPA (the 2005 bankruptcy reform act)?