Obama Woos Student Borrowers With Executive Order On Loan Repayments [Bye, Bye, Boehner!]

Guardian (UK) ^ | June 09, 2014 | Heidi Moore

[Steelfish]

Obama Woos Student Borrowers With Executive Order On Loan Repayments President calls education 'single best investment you can make' in signing order to extend PAYE initiative to 5m more youngsters

Heidi Moore 9 June 2014

In another attempt to stem the economic threat of high student debt and win favor for his party before November’s election, President Obama on Monday signed an executive order that will limit federal student loan payments for 5 million more people.

Calling an education “the single best investment you can make in your future,” Obama extended the four-year-old Pay As You Earn initiative, which has lowered monthly payments for student who borrowed federal student loans for the first time between 2008 and 2011.

The program lowered monthly payments to 10% of a borrower’s after-tax income. Borrowers who graduated before 2008 or after 2012 had access to another program, which limits student payments to 15% of income.

Monday's executive order will extend the initiative to anyone with a federal student loan.

It also adds another dimension: forgiveneness of student loans. If borrowers make regular payments on the PAYE program, the government will forgive any unpaid portion of their loans after 20 years. Forgiveness comes even sooner for students who decide to take government or nonprofit jobs, who will find themselves released from their loans after 10 years of regular payments.

There is also an element of political timing to the announcement. In September, Democrats face bitter battles for control of the Senate and the House.

Still, student loans remain a sweeping and intractable problem,which Obama acknowledged. The last major piece of legislation on them passed in 2010.

[TWhiteBear]

‘They have not a CLUE what has happened to them, or the fact that their Republic is officially GONE.

If someone were to take a sky-writing plane all over the U.S. and write in the skies “Your Republic is Gone!”, I would bet that darn few would react, mostly because they wouldn't understand the reference, i.e., what has happened. Those who did react would say something such as “What's a republic?”’

Now, an Executive Order or Decree is established law and precedent.
Two specific examples.
1. President Obama can declare Congress in recess and proceed with his legal and authorized Presidential duties. As with his appointments to the NLRB.
2. President Obama can ignore Federal laws passed by Congress if he does not feel he has sufficient time to obey then. As with exchanging the terrorist leaders for the American traitor, specifically contravening the Law passed by Congress to cover such exchanges.

I understand most people either accept or ignore these principles of a New Constitution.
In a like manner, considering the chaos in the domestic economic situation and the world at war, it is likely that the Presidential election of 2016 would be delayed until 2020, to assure a fair election and the protection of the peoples right to vote.
TWB

[MortMan]

I thought the figure was 10-15% of discretionary income, not net.