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We all know this was to be implemented in 2014 anyways. So you have to ask yourself, why does it need to be done right this second, if, in fact, it's only going to equate out to about $10 per month per student over the lifetime of the 20 year loan (because it will be forgiven after 20 years).
The answer is that Obama needs college kids to get out and vote and what better way to buy their vote then to lie to them that they will:
Quote:
Now, living with that kind of debt means making some pretty tough choices when you’re first starting out. It might mean putting off buying a house. It might mean you can’t start a business idea that you’ve got. It may mean that you’ve got to wait longer to start a family, or certainly it means you’re putting off saving for retirement because you’re still paying off your student loans.
And when a big chunk of every paycheck goes towards student loans instead of being spent on other things, that’s not just tough for middle-class families, it’s painful for the economy and it’s harmful to our recovery because that money is not going to help businesses grow.
Budgetary Costs of Direct and
Guaranteed Student Loans
Despite the many similarities between the FDLP and the FFEL program, the latter is significantly more costly for the federal budget. For example, CBO recently estimated that the President’s proposal to eliminate the FFEL program and replace it with additional direct lending would save the government a total of $62 billion between 2010 and 2020.2 Although the federal cost per dollar of student loans originated varies from year to year and among different types of loans, a loan made in the FFEL program consistently shows a much higher budgetary cost than if it had been made in the direct loan program.
The budgetary costs of the direct and guaranteed loan programs are recorded in the federal budget using the standard procedure specified in the Federal Credit Reform Act of 1990 (FCRA).3 That law says that the costs of a federal loan or loan guarantee should be estimated in the year the loan is disbursed as the net present value of the federal government’s expected net cash flows over the life of the loan or guarantee. Those cash flows are discounted to their present value using the Treasury’s borrowing rates.4
Ok, I admit I didn't read every post here ... but back to the OP post.
Obama is just trying to buy votes again by this act. Why didn't he do this earlier..?
What has happened to the morals of folks these days, to think you can get through life for FREE. You sign a contact, you abide by those rules that you agreed too.
If this younger generation doesn't wake up and stand firm ... our country will be doomed in the near future. What a bunch of cry babies most of them are today. Expecting handouts and freebies for everything. I pity your offspring if you implant those same morals onto your children.
So go to school get your degree and don't get a job and bingo you don't have to pay your loan back. Sit around and protest in the park and live off the government thinking your smarter than everybody else because you have your piece of paper and look down at those who are working for a living. Liberal utopia one step closer to reallity.
"According to Duncan, the Know Before You Owe plan will cap monthly student loan payments at 10 to 15 percent of the graduate’s income. "
It's NOT free! This thread is not based in reality. For most borrowers this doesn't change anything, they will pay what they always did, for those struggling to pay their loan while earning low wages, this will help prevent them from going into default while they try to work their way up into higher earning jobs, but they will still be paying 10-15% of their income and accruing interest, that is not free, people still pay for their loans, most pay off everything they borrowed plus huge amounts in interest within 10-15 years.
This thread also ignores that an important reason for this 10-15% cap is that it allows people struggling with student loan debt to have more money to contribute to our economy, instead of just sending most of their paycheck off to the banks, they are out there spending which is what supports US businesses. I'd prefer these people be able to spend money in my business, rather than give everything to the banks.
SHHHHHH! Don't confuse the anti-education crowd here with a factual explanation.
I just cannot believe there are so many people who think education does not benefit the public. Is it paranoia? Jealousy? Envy?
You mean like GE that paid ZERO taxes on all their HUGE profits? I agree. Companies like GE should pay their fair share. Maybe Obama can tell Jeff that at their next meeting.
FWIW - I don't think anyone should get a special tax break. I think a flat tax no deductions or the fair tax is the way to go. Those sucking on the government teet should pay the same percentage as GE should.
But currently the government does not "give" money to oil companies, but it does "give" MY money to freeloaders sucking off the government teet.
I agree about GE, and all the rest of the big companies--including oil companies--that are raking in huge profits and not paying their fair share. (Claiming that the government doesn't "give" money to oil companies is disingenuous--if you give them huge tax breaks, it's the same thing. But I'm sure you already know that.)
It's funny how you don't see these companies as "freeloaders sucking off the government teat" but you think that unemployed Americans are. Why the double standard? Yeah, I know, corporations are people, right?
So go to school get your degree and don't get a job and bingo you don't have to pay your loan back. Sit around and protest in the park and live off the government thinking your smarter than everybody else because you have your piece of paper and look down at those who are working for a living. Liberal utopia one step closer to reallity.
"According to Duncan, the Know Before You Owe plan will cap monthly student loan payments at 10 to 15 percent of the graduate’s income. "
And also free to everyone who gets over the border into the USA illegally. Free college for the whole world. Obama is the man!!! Too bad for the American taxpayer.
At any given moment there are large numbers of people thinking about suicide because they cannot get out from under the nightmare of these private loans, that should not be the case in our supposedly "great" country. Often private loan companies pay commissions to college counselors, or even have their own employees act like counselors to talk naive young people in to taking out large loans, telling them they will get a great job and pay it back, no problem.
That should fit nicely with all those courses in Darwinism they had to take. Survival of the fittest, only those best suited to survival survive.
What's the point in teaching evolution and Darwin if we're not going to allow it?
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