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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?
Shhhh, now why'd you want to go and inject facts into this?
I was so enjoying the usual predictable diatribes from the usual suspects.
I agree with what Obama is doing here. This is the bailout that Americans should have gotten.
This will actually help the economy in the long run. Freeing up student loans will lift the strangle hold that many students have and allow them to buy "big ticket items" such as houses, cars etc and ultimately increase consumer spending. It's something that would have been extremely difficult for some with the present situation and would have continued to be a dead weight on the economy.
You don't know what you're talking about. We own the US Dollar, which means that our government decides how much new money to create from the presses, and it decides how much old money needs to be destroyed via taxes.
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?
It appears they have a fairly tight definition of disposable income (they did when I looked) so I don't think borrowers will get away with spending $499K and repaying a student loan on the basis of $1,000 in discretionary income.
Oh, give me a break! What's lazy about going to college? Why is it OK to borrow money for a house, a car, a boat, or just about anything else, but not to go to college. Plus, there are many tax credits/deductions in the tax code for specific groups, eg child care credit, medical expenses, moving expenses and many others.
LOL, the majority of boat loans are 100% subsidized by the government?
Nope! Obama should do NOTHING to help the economy by giving a break to financially over burdened graduates. ALL their loans should be worked off in slave camps....
..they DO have a choice....they can forego higher education, get lower paying jobs so they're not paying so much in taxes....less taxes going in the better!!!!
And, with less education they
A. Will not be able to buy so much and stimulate the economy.
B. Will have to settle for any wages and any work conditions freeing up more money for CEOs who need to make enough money every year to support small countries...or several generations of their children who will never have to lift a finger to earn money.
C. Will have to depend on the government for food and shelter...or just conveniently die.
D. Will help create a giant two class system as other Third World countries have.
The above ABCD is the Repug plan to help the economy.
Now, can people see why college costs keep going up? Why schools feel comfy providing all the high price tag Underwater Basket Weaving Programs for which they could care less if the job it provides (or doesn't) enables the graduate (or drop out) from paying back a loan?
How about just cancelling the debt to the school instead? Let THEM go after the student for repayment.
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