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Rather than paying huge fees to third-party bill collectors, the government would debit borrowers’ paychecks at an amount capped at 15% of income after basic living expenses.
"Of course, this all comes with a cost. Bloomberg reports that some student-loan subsidies aimed at lower-income borrowers would be eliminated:"
Quote:
Low-income borrowers would no longer be excused from accruing interest when they are in college. The bill would also eliminate income-based programs that forgive loans entirely after 20 or 25 years — and, after 10 years, for those who enter public-service careers, such as teaching or law enforcement. The new system would apply only to new loans.
I think this could be interesting depending on all the fine print.
I know too many people who have graduated and have no intention on paying their loans back. One of my roommates just stays in school taking one or two classes each semester to defer her loans...her job is paying for the new courses so she's basically getting a free education hoping eventually her loans will be forgiven.
"Of course, this all comes with a cost. Bloomberg reports that some student-loan subsidies aimed at lower-income borrowers would be eliminated:"
Everything comes at a cost so when folks whine about something being unfair and thats addressed something else goes up. I personally prefer things as they are now.
States as well as the Feds have had the right to do this type of thing in re: to many debts.
States can garnish one's wages for backpayment of child support.
States can garnish one's wages and withhold (or deduct) from state income tax returns any monies due to state institutions, i.e. university bookstore debt, library fees, etc.
These are just a few examples off the top of my head. I am sure others will have more examples to share.
I am sure someone will correct me if I am wrong, but it is my understanding that once Obamacare goes into effect, your income tax refund can be seized (as payment of a penalty) if you have either not purchased or let your insurance policy lapse. This may be allowable at the state level and not the federal. I honestly am not sure. But either way, it is yet another example of the power of the government to recoup debt from citizens.
If you owe taxes to the IRS, they can seize your checking account or any of your assets.
This is nothing new.
Last edited by brokensky; 12-04-2012 at 01:53 PM..
Yes get them used to being indentured servants to the government master while they are young.
Really the fed should get out of the loan sharking business as it promotes young adults going to school for studies that have no future or practical application.
Works for me. My oldest finishing college next year is already paying off her loans while going to college and working.
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