Posted on 10/26/2011 12:09:41 PM PDT by tcrlaf
I can’t help but feel that President Obama’s new student loan proposal could take its title from William Shakespeare’s comedy “Much Ado About Nothing.”
Technically, on paper, the “Pay as You Earn” plan that the president began trumpeting Wednesday is new because he will authorize it through an executive order. But that authority is being used to expand an existing program. (SNIP)
Let me put it another way so you are clear on who will benefit from this change. The president’s order does not affect borrowers who took on loans before 2008 and who do not take out a new loan next year. So, if you are already in repayment and are not planning to take out new student loans, this order does not affect you.
The changes could help borrowers who in 2012 and later consolidate loans from the government’s direct loan program and the nixed Federal Family Education Loan (FFEL) program. Overall, this measure would provide an estimated 1.6 million borrowers with more manageable monthly payments, the administration said.
By the way, if your loans are in default, you can’t take advantage of IBR based on the current program or the president’s executive order.
Got overwhelming private student loans? No soup for you!
(Excerpt) Read more at washingtonpost.com ...
Only applies to loans taken out AFTER 2008, and only if you have a NEW loan in 2012. Does not apply if you are in Default.
I think I'm more shocked by the WASHPOST actually admitting this, than I am by Obama misrepresenting something again.
"More than 36 million Americans have federal student loan debt, but fewer than 450,000 of them participate in income-based repayment, the administration said."
So why isn’t he going around bedeveling the evil professors and school and ministrators like he did wall street?
you don’t start handing out the REAL goodies from the stash until after you get closer to the election
This 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!!
That is exactly how the system will be gamed.
And the politicians won’t stop bribing the people with their own money until we are Greece on steroids.
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.
This 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!!
That is exactly how the system will be gamed.
And the politicians won’t stop bribing the people with their own money until we are Greece on steroids.
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.”
Everyone I talk to, Republicans, Democrats, Independents, are all disgusted with our politicians. It’s clear that their #1 job is to keep their own job. They don’t give a rat’s patootie about what happens to the public.
We are in free fall, and those charged with fixing it, don’t have the will to do so.
I can see a day when there’s a demonstration in Washington, that isn’t too peaceful, and could involve no so pretty things happening to the elite 535.
BWA HA HA HA HA HA HA HA HA HA HA! So for all of Hussein's posturing, all the ASS kissing the media has done on this subject (I saw it mentioned numerous times on the fawning morning shows), this crap basically helps a select niche of kids.
Nice move there, Bambi.
Exactly— why are there not riots at Universities and Colleges who continually raise tuition rates since their major gripe is about the cost of student loans.
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