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This president is going to bankrupt this country and we will be paying 99% taxes in a few years to keep afloat . Of course what does he care.. he will be on the talking circuit taking in millions of dollars and could leave and go to any country of his choice and leave us all broke. Obama really has no skin in the game. He wants power for his changey thing using the financial crisis and taking down capitalism and replacing it with socialism.
You obviously didn't read your own link. The current program limits payments to 15% of your discretionary income, and forgives the balance after 25 years. This isn't a new thing, and I'm guessing they must have a formula for payments that they currently use. So--they're cutting 5% off the minimum payment, and 5 years off the formula before the debt is forgiven. You can also consolidate loans and negotiate for a lower interest rate, which you should be able to do if you have good credit and interest rates stay low--it's just like refinancing your house. Not exactly as dramatic, is it?
This! Also wanted to point out that the Income Contingent Repayment plan (ICR) has been around since BEFORE the president came into office. It is very similar to the IBR (Income Based Repayment) plan which is basically what the link is about and which has been around for nearly 2 years.
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Originally Posted by summers73
An ASE certified mechanic or HVAC technician makes more than most sociology degree majors, especially when you take into account the opportunity cost and indebtedness you get in during your college years.
Just so you know people take out loans to pay for vocational schools as well and they are also quite expensive depending on where you go to school. Many of these "technical schools" also require a large amount of class room work in order for you to move on to the vocational training. People who aren't that academic sometimes take classes more than once (I know someone at a community college who had to take basic math 3 times in order to gain credits toward an auto body shop mechanic degree). When students don't move on from these "core" classes they cannot take vocational classes and they have to continue to take out loans until they can pass composition or psychology or math, making their loan balances rise in the process.
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Originally Posted by cyclone8570
Or they can work hard and pay for college on their own-- go to a state school or community college first, and not major in basket weaving... Then they won't be drowning in student loan debt.
You know-- what all the smart people in this country do.
State schools cost almost as much as private colleges today. The are usually over $10K per year staying off campus on campus they are nearly 20K in some instances. Most 18-24 year olds make 20K in year and cannot "pay as they go" and turn to loans to assist them in the education. Also community colleges have systems similar to what I described above. They test all incoming students. If you don't pass their "core" subjects to their satisfaction they make you take "remedial" courses. You cannot start your course of study until you can pass the "remedial" courses. Then you move onto the "core" subjects which include many subjects that are not related to what many students want to do with their career. After passing those and moving on to you plan of study and "major" classes, the "major" classes at most community colleges are not always offered so students spend way more than 2 years at community colleges and taking out loans and taking electives in the process causing them to pay more for their community college experience versus just going to a traditional (expensive) state school or private university where they can just get tutoring and not have to waste their time and money on "remedial" courses.
Most of you seem like you don't know much about higher education in todays day and age. Also it seems like many of you think that those who owe a ton of money on student loans are not "millenials." My husband graduated from college in the mid 90s and owes over 30K still even though for years he paid over $300 a month on this bill. But there were times when he lost his job and asked for a deferment or forebearance and during those times thousands of dollars in interest were added to the loans. He has more than triple paid off what his college education was worth since 1990 when he first went to college. He went to a state school and it was less than 10K back then and he only took out a total of about 15K for the whole time he was in school. The amount of payments we have sent on this loan have probably come out to 30K so we have well paid off the original amount and then some, but interest accumulates like crazy in forebearances.
And for those of you who complain about useless majors, doctors especially have the highest amount of money owed when they graduate, usually 150K to 200K today and their fields pay a lot but that is just the way it is.
Also like a PP mentioned, you cannot get an entry level job making 25K today without a bachelors degree. My company won't hire a receptionist if they don't have an associate's degree and receptionists make $8 an hour here.
Where is the fairness in this? Those of us who did not go to college, or went to community college and got an associates degree, will be forced to pay the tuition costs for people who accumulated loans for tens or hundreds of thousands, and got a bachelors, doctorate or masters degree, who then will go on to earn significantly more then us?
First of all, we are broke as a nation, we will need borrow this money. We are supposed to heap even more debt on the children being born today, just so we can pay for the excesses of people today?
I realize that there are people who are dying under massive student loan debt, but how does that become my problem, or my grandchild's problem?
All rational arguments but you still have to deal with the reality of the situation. We are currently sitting on a dead weight economy at this point. Student Loans are currently crossing the 1 Trillion mark. If simply "paying them" were an option, this wouldn't even be a discussion. The only option left for some will be to default on them, and that is worse than the outcome that Obama is proposing at the moment.
People aren't compelled to pay back loans that they simply for unintended reasons that they can't pay back. It's similar to the houseing bubble. The debt became so overhwelming that people just walked away from it and handed over the keys.
At that point, what other options are there? Lock the people up who fail to pay them? Great, but you still have to deal with the fact that a large portion of the debt cannot and will not be paid.
...not to mention all the people doing those jobs and not going to college, will be paying for the tuition for these people.
Don't worry, the uneducated will get their money back when the educated have to pay higher taxes when they become "rich" that the uneducated are unable to pay themselves.
Or they can work hard and pay for college on their own-- go to a state school or community college first, and not major in basket weaving... Then they won't be drowning in student loan debt.
You know-- what all the smart people in this country do.
Although I majored in something employable, this argument of majors being chosen is just a strawman argument. The overarching problem is that there are far too few jobs for the amount of college grads that schools pump out every year. Add that to the fact that babyboomers are also being strangled by the economy and therefore they are now forced to retire at later ages, leaving less jobs available. And there are some who are already retired are also being forced to return to the job market for supplemental income. Remember, babyboomers are probably the largest aging generation in American history.
However, going back to what I said before about majors; in theory if everyone majored in engineering, nursing and math--consequently you would just have more unemployed engineers, mathematicians and nurses. The bottomline is that there simply aren't enough jobs to go around
However, going back to what I said before about majors; in theory if everyone majored in engineering, nursing and math--consequently you would just have more unemployed engineers, mathematicians and nurses. The bottomline is that there simply aren't enough jobs to go around
There are majors in demand, and majors not in demand. The problem is students will major in something that is not in demand, then graduate and wonder why they can't get a job...
That doesn't mean that there aren't enough jobs to go around-- but rather means the student didn't want to major in something that would get them a job in an "in demand" field.
I think a law should be passed that colleges must provide students with a list of the majors they offer, the job placement of these majors after graduation (i.e. 20%, 50%, 90%), and what the starting salaries typically are for these majors. Colleges keep track of this information-- but won't give it to you unless you ask. Kids entering college are often times too uninformed to ask for this. Therefore colleges should be required to provide this... Then we'd have a lot less unemployed people in this country.
2. Does he realize how much this program will cost?
What the heck does paying back only 10% of discretionary income mean? You can make 500k a year an spend most of it. Leaving yourself with less than $1000 of discretionary income. So does this mean you only have to pay $100 each month on say a $200k loan and Obama will forgive your unpaid balance after 20 years?
How much does Obama think this program will cost?
Obama doesn't need to win over that demographic. He already has it.
Too many colleges lie to prospective students to keep the cash flow intact. That is just another form of allowable fraud. Somehow it is morally acceptable for a business like a college to lie to a student but totally unacceptable for the indebted student to bankrupt when they cannot pay the loan. I suggest that the college be charged for at least half the debt if their students cannot pay off the loans. The bankrupt student can then pay the 15% of their income over twice the poverty line until the debt is paid or they die.
Another alternative is to have the government remove the student’s freedom and auction them off to the highest bidder or have them work off the debt as wage slaves. We are doing the latter already.
I don't know. I think it is time for those of us who are young to wake up and take a little responsibility. We already have income sensitive repayments. If you owe money, get on a plan to pay it back. We borrowed this money, it is our responsibility to pay it back. Yes, I regret not working my way through school, but I learned from my mistake.
Obama has blamed republicans and congress for his failures and depriving students of jobs. He has announced his intention to subvert the legislative process and has offered students a freebie.
Obama's constituency consists of the narrowminded and self absorbed, if he gets enough of them to vote. he wins and America loses.
Amazing that no one, even the Reps, can't simply ask Obama, to explain in detail, his legislative proposal. Instead everyone seems fine dealing with hazy rhetoric that hinges of unspecified implications and timeline.
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