Posted on 03/30/2010 8:46:30 AM PDT by 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."
(Excerpt) Read more at whitehouse.blogs.foxnews.com ...
What about students that were getting ready for a student loan in the next few months?
Apart from 0bamacare, this is the next bill that is going to get the ax when we take over. This bill is totally nuts.
This is a domino-effect that has got to be stopped. Next, 0 will be looking to set up a governmental loan office for people who can’t get loans due to bad credit...oh wait, Freddie and Fannie already exist.
Maybe a government administered VISA or MasterCard...they’ll call it GRAB, Governmental Redistributive Assets Bureau. Paying interest is optional...in fact paying back anything is optional, if you’re a registered Dim’crit.
Everything obama does is a guaranteed money-loser!
He never worked in the real world!
Student loans should be structured like a mortgage and require a down payment of some sort, like so:
Tuition up to $5000/semester - 25% down
$5001 - $10,000/semester - 20% down
$10,001 - $25,000/semester - 15% down
Over $25,000/semester - 12% down
This way, it puts *some* downward pressure on tuition, as, no matter what loan they get, they can’t finance it all. Let the lending be done privately, but regulate as such - while I’m not a fan of regulation, such a method would control costs while still giving reasonable access to student aid. Scholarships can give a student an opportunity for zero-down, as well as grants, but having a large chunk (the loan-borrowing student body) restricted as above would be enough, I think, to keep some control on the market while not making it impossible for anyone but the uber-rich to go to college.
Grants, such as the Pell Grant, can also be “capped” at such a level that it would make tuition increases over XXX% per year difficult as the grant wouldn’t “catch-up”. While this is essentially a form of price control, what we have now is a reverse price control anyway, i.e., the endless subsidy of tuition means costs go up, up, up with no incentive to cut them.
Just my $0.02.
As part of the expanded income-based repayment plan, 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.
Public service workers such as teachers, nurses, and those in military service will see any remaining debt forgiven after just 10 years.
Multiply that by millions of students every year over decades and you have even more trillions of dollars added to our already massive $13 trillion Federal debts. 0bama’ insanity just has to be stopped at all costs.
You left out the part about thousands, and thousands, of new bureaucrats required to move the process into the government's hands.
The federal government is destroying everything.
I assume that there will be formulas students have to use. Still, I had to pay my school loans back and I did. My daughter is paying hers back now. Those coming after us need to do the same instead of looking for me to do it for them. If they can’t afford school, get a job first and go later. Or go to community college. Or do both.
Aw man! I knew I shoulda shoved my nose into the gubmint trough when I had the chance!!!!
/ONLY kidding, people...
That’s Obama’s bribe to the kids. He’s bribing them with other people’s money.
If someone gives you money they’re gonna’ tell you how to spend it. Except in the case of the people giving money to Washington.
But, if the government pays your college they’ll teach you what they want you to know. That would be the Bill Ayers part of the obama destroy’s america law.
That's what I'm terrified of.
WTF! is right...
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