Skip to comments.Obama unveils student debt-relief plan
Posted on 10/26/2011 11:50:48 AM PDT by jazusamo
Continuing his recent tack of bypassing Congress and enacting reforms without them, President Obama on Wednesday announced a package of student loan reforms designed to lower college graduates monthly payments, arguing his plan will redirect some of that borrowed money into the economy to promote job growth.
Speaking to a friendly audience of college students in Denver, Mr. Obama said the changes wont cost taxpayers a dime but will save you money and will save you time, and tied the ever-rising cost of education to the nations lagging economy.
Living with that kind of debt means making some pretty tough choices. It could mean putting off buying a house. It may mean you wait longest to start a family, he told the crowd, which erupted with cheers when the president spoke of moving ahead without waiting for Congress to act.
Under his plan, college graduates will be able to consolidate direct government loans and government-backed private loans into one monthly payment at a lower interest rate. Beginning next year, college students monthly payments will be limited to 10 percent of their discretionary income, and all loans will be forgiven after 20 years. That program was scheduled to take effect in 2014, but the administration has decided to bump up the starting date.
(Excerpt) Read more at washingtontimes.com ...
Well..now he has the college vote, and soon ...the default mortgage voters....who’s next?
Start taxing college endowments especially those lucky colleges with the largest endowments (remember the rich are just lucky, those large endowments were stolen from smaller colleges who were no doubt exploited by the rich)sarcasm tag here.
Like most freepers I'm pretty much anti-tax, but look at who would be taxed; large liberal private universities. You know, where the liberal professors who support OWS work. Think of the irony, these mega rich liberal institutions crying over having to pay their fair share.
Here's and out...if they take over providing their students with the govt financial aide and guaranteed loans that the students qualify for based on their FASA, no tax. Colleges with hundred million dollar endowments, or even billions, should be providing financial aid for their students, not the taxpayer.
How in the world does he say this with a straight face?
Elections have consequences.... especially when one “WILLINGLY” brings a Chicago Politico into the mix!!
Unfortunately we cannnot fix stupid. The only hope is that there are enough reasonable, intelligent, not underwater, not looking for a free handout, willing to reduce Government’s hold on everthing folks still out there to overturn Oblah-Bah’s re-election.
gubmint subsidized education has the same outcome as gubmint subsidized health care. what a shocker. And the solution is always more gubmint intervention.
My sons paid off their loans in full at about 8%. It took years. One son also paid off his lazy, weird wife’s loans.
Honk if I paid for your :
gay and lesbian Hispanic transgender Degree.
What the heck is this? 10% of their discretionary income for 20 years? These borrowers would be lucky to pay back 10% of what they borrow by then!
This president is just trying to by votes for next years election. Unfortunately I believe it will work.
I don’t get it either.
it won’t cost us a dime? what about the triple doctorate holder that is approaching the 20 year mark and still owes 300,000
who is going to pay that?
Where is the outrage from Boehner and the rest of our side on this issue? Going around congress................*crickets* The silence tells me they are O.K. with it.
not to worry- another Exective Order will declare it all “deficit neutral”.
who says what is “discretionary”? is that before or after the BMW payment, Mortgage payment, full package cable bill, cell phone bill????
I think it’s the ones way of saying take all the college debt you want on the governments dime, but don’t worry. you will NEVER have to pay it back.
Why would you need to pay back anything!
Just string it out for 20 years and poof!
And where the hell is the money then?
This is blatant vote buying.
Now we know! One of Obamas big moves in his two years of total DC Dem control, was to federalize student loans now with that full authority, today he dangled offers of help and even forgiveness in front of a student crowd. But somehow to liberals that is NOT corruption or vote buying is that progressive math??? (one of OWS demands is student loan forgiveness). So shall I surmise bailouts are OK if the bailees vote DemWit.
...Thereby ensuring that hoard of college kids will put down their bongs and switch off Sponge Bob long enough to vote again.
who is going to pay that?"
Well, since the balance is written off after 20 years, it is either skittle pooping unicorns or whatever taxpayers are left before the country collapses and goes Road Warrior.
Now....since higher learning institution are assured forced taxpayer support, they don't have to be competitive with other schools and they can charge those outrageous tuitions without ever lowering them. Why should they? Tuition to them is now assured by Obama, one way or another.
I know a lot of academics. They live like kings with housing, sabbaticals to traipse around the world on grants, sabbaticals to write books (a relative of mine included, a marxist), getting assistants to teach in the classrooms as substitutes for them half the time, benefits and perks out the kazoo.....and so forth.
What goes on in these unchecked institutions vis a vis government is both corrupt and scary....and there's BIG money involved in this industry. At the same time hardly anyone in the lumpen proletariet knows or cares about the administrative/financial goings-on in Big Education.
When Obama directs tax subsidies to students (which benefits the schools at the same time) EVERYONE who works inside the sheltered, ivy-covered walls of academia is happy as elite oysters comfortably nestled around cultured pearls.
Cool, enroll in college and take out government loans. Get your MRS, MR, or SO degree. Or continue to live in your parent’s basement and play video games all day. Avoid paying the loans for a few years and you’re off scot free. Now, how is this not costing the taxpayers $$$?
Well said. This will be nothing more than an ongoing guaranteed government dole for students and academia.
Please limit the vote buying to handing out cigarettes.
Its alot cheaper.
And most of these numbskulls would vote for you anyway.
Sorry, I'm not seeing the math add up.
This is typical vote-buying welfare that invites abuse and fraud.
True story. I struck up a conversation with a woman in an airport while waiting for a flight. The economy and the plight of recent college graduates came up. She openly (without a hint of shame) told to me how her daughter plans to take advantage of Sugar-Daddy Obamas generosity.
Her daughter is majoring in a graphic design program at an expensive CA university and already has $56,000 in student loans.
Realizing that the labor market is depressed, instead of graduating, she is staying in school and living off student loans as long as she can. Which is what millions of others will do too.
She has no incentive whatsoever to limit how much debt she racks-up. She knows that she will not be held accountable to pay it back. Why stop at $56,000? $100,000! $150,000! $200,000! Skys the limit when you are spending free money!
After 20 years of repaying not much if any of her student loans, her debt will be forgiven.
How neat! Like free money or something!!
That is exactly how the system will be gamed.
And the politicians won’t stop bribing the people with their own money until we are Greece on steroids.
Easy, cheap, government-guaranteed money caused the housing bubble. Now it has caused a higher education bubble.
This is the vote-buying politicians’ way to keep the bubble inflated and keep the money flowing to one of their best mouth-pieces... liberal professors.
After finding that Obammy's definition of rich is a moving target....it's a legitimate question.
makes me so glad i busted my azz to pay mine back...
Dude like paying college loans is so lame. Like why can’t we get the loans forgiven like after 10 years or whenever we think it’s cool. Just tax the people who work with stocks and stuff. And make sure I get academic credit for chilling with my peeps at the OWS protest while I work on my PhD in African Drumming Techniques. Also some subsidized medicinal weed would be sweet.
It was only a matter of time before this happened. McCain would have done the same.