Skip to comments.Obama's Student-Loan Order Saves the Average Grad Less Than $10 a Month
Posted on 10/27/2011 9:27:46 AM PDT by NoLibZone
The monthly impact of the president's new effort for most Americans paying off college debt will be between $4 and $8
Of the many long-term problems the U.S. economy faces, student loans are a big one. Education costs are rising very quickly and incomes aren't. As a result, students will have to borrow more and more money to obtain university degrees and will have a tougher time paying their loans. President Obama seeks to respond to this question with an executive order in the next part of his "We Can't Wait" unilateral stimulus effort. While the president's heart may be in the right place, his effort isn't like to have much impact.
The Problem: Student Loans' Crazy Growth
The cost of college is growing rapidly. That wouldn't be a problem if incomes were growing as quickly as tuition and fees. They aren't. In order to cope with the growing expense of college, more students are relying on bigger loans. The chart below demonstrates the problem pretty clearly:
You can see that student loans have grown by 511% since 1999. Meanwhile, disposable income has grown by just 73%. As this chart also shows, most outstanding student loan debt (82%!) was accrued by students over just the past decade.
Obama's Executive Orders
The president seeks to make the situation a little bit easier for some of those graduates. He will create an executive order that has three components.
(Excerpt) Read more at theatlantic.com ...
WOW! ! ! !
Great. Now I can go back and finish my degree in 17th Century Russian Literature with a minor in women’s studies.
The game will be to slow pay and slow play it for 20 years and then ‘poof’....no more student loan obligation.
This is BS! Just like the mortgage mess- don’t lend to people who can’t afford to pay it back!
$10 a MONTH????
Hold me back!
Those educated in gummint schools will realize you can lease a Mercedes with that much real money....
The price of a vote has gone up...it used to only be a pack of smokes.
I think it might be even a worse fraud. I heard that this only applies to “federal student loans”. Did anyone also hear this?
If so, there are limits on how much a student can get each year for a “federal” loan so most student loans are from other sources. Besides, I made sure that our kids did NOT get federal loans because dealing with the federal gov’t is difficult at best.
Besides I paid my student loans back and expect my college kids to do the same. At lease they are both getting degrees in something useful!
10 bucks? LOL!! How about they occupy their vacant minds.
You know what a price of smokes goes for in NYC? about ten bucks.
Gee, they get to go to college on my dime, and get paid more for a days work. I am supposed to feel sorry for them? Why should I have to work for their college education!
This points out what a SCAM so much of “HIGHER EDUCATION” really is. Thousands of those ‘graduates’ hold degrees that have NO economic past, no present, and no future financial payoff.
The SCAM is that the Colleges and Universities knew from day one there would never be a way to earn back the money flushed down the education toilet for these phony “studies”
By contrast, the reviled Bernie Maddof is a real piker. I think a lot of male professors have beards because they cannot look themselves in the eye as they shave.
Hmmmm...ABC News had a story last night that showed a graduates $600 monthly payment cut to $150. I know...I know....ABC News.
I’m not sure this is accurate. Maybe on the “average” when you include doctors, lawyers, self made, brokers etc. But I know people who owe hundreds of thousands and get government jobs paying the mid $40’000s. If they are capped at $3000 a year in payments they will barely pay the interest. As they get older and make more they might pay some principle but not a lot of it. By the time they retire they will still owe a fortune.
Frankly I think everything has shifted. People should know a lot more by the age of 18 than many 22 year olds know. High School curriculum is weak. Public education has turned into glorified day care. If you are lucky you will get decent teachers and learn how to learn - and benefit from a college education. But I still question to cost/benefit. Even if this post is correct and “half” the people will not benefit from the deal that implies that a large percentage of borrowers probably did not get good value for their money.
Was that sign meant to be a joke?