Posted on 10/26/2011 5:07:14 AM PDT by Libloather
Saving money on college loans: President changing programs to help millions
Michael Gorsegner - Staff reporter
6:44 a.m. EDT, October 26, 2011
SPRING GARDEN TOWNSHIP, YORK COUNTY— College is known as an investment in the future. But that investment is becoming a burden for many students. The President will announce some changes today that could lower the amount students pay for student loans.
**SNIP**
Graduates qualifying for the "Pay as You Earn" program will have to pay 10 percent of their discretionary income for up to 20 years. If there is still a balance after that time frame, the remaining due would be wiped away. Those requirements are dropping from the 15 percent for up to 25 years in place now. White House advisors saying, these tough economic times call for tough budget decisions.
"We have got to reign in wasteful spending. We have got to cut our budget and in some cases we have to stop spending on things we care about just because we can't afford them anymore," said Barnes.
According to the White House, both changes to these existing programs could help over 7 million people decrease their payments. But, the time to act is soon. To qualify for the debt consolidation, students need to register between January and June.
The decreases are not supposed to cost taxpayers anything. The money saved by people in the debt consolidation program will be offset by the administrative costs of processing one payment instead of several payments by borrowers.
(Excerpt) Read more at fox43.com ...
This guy has real knack for economics. When you are piling on debt, hemmoraging cash and running out of credit, what do you do? Well of course, DEFAULT ON YOUR RECIEVABLES!
Would that he could. The reality is there is no magic. Someone is going to take a hair-cut on these student loans. Perhaps Great Leader is so used to printing money he now thinks debt can just as well disappear.
Titheing to the government.
THIS should work out OK ... /s.
Let's say the average pay over that 20 years is $50,000. Ten percent of that over 20 years is $100,000. That encourages students to take on more than that, and it encourages Ivy League schools to charge even more in tuition.
After 20 years all the debt is forgiven? WOW, Just WOW - I wonder how on earth Obama has this authority and how much potential cost is involved.
maybe we can roll the student loans together with the new bambam mortgage re-fi and let America pay us for a change...??? /only half sarc...heheheheh...
Time to stop paying our mortages and go to college per student loans.
the joke will be on everyone who takes advantage, as the IRS will hit them with a tax bill the year after the loans are forgiven
the IRS considers that forgiveness “income” and taxes you accordingly
They get you coming and going. 20 years of interest to the Government, remaining principle forgiven taxed at 40 to 50% (Fed, FICA, SS/MED). Indentured servants to the Master Government for life.
This involves spending revenue. How does he do it without congress?
Throw in class credit for time spent smoking dope at the local OWS protest and little Johnny’s $300k tax-payer-financed basket weaving degree from Ivory Tower University is money well spent indeed.
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