Obama's plan for student loans

So can someone explain how welching on your debts is a good idea?

 

He is going to need a ton of new teachers (public service?) for his all-day school idea.

 

a) he hasn't fixed everything, so he shouldn't try to fix anything.

b) due to a combination of circumstances in both parties, anything he proposes or suggests has an exactly 0.00000% chance of ever passing. Give it up

 

Shrieking monkey brigade: Why isn't Obama doing anything for the middle classsssss?!

Obama does things for the middle class.

Shrieking monkey brigade: NO!

Simple solution: Ignore the shrieking monkey brigade.

 

Joe McNight won't have to pay for his truck anymore.

 

I too would love to hear an answer to poin's question. My student loans followed me around through two states, marriage, three car purchases, a home purchase and a kid, and never once did I feel like they were a burden I shouldn't have to bear.

 

Only on SportsJournalists.com would the shirking of debts seem like a fantastic idea.

 

And here:

http://www.dallasobserver.com/2010-01-21/news/better-off-deadbeat-craig-cunningham-has-a-simple-solution-for-getting-bill-collectors-off-his-back-he-sues-them

 

I'm going to have to read up more on this, as I've recently left the financial aid / enrollment field (now teaching elementary school....yikes....). However, there's a LOT that just doesn't add up here. They talk about loan caps....but there are already lifetime loan caps for federal loans. I wonder which direction the caps are headed. Also, the current standard repayment "clock" is for 10 years (can be started and stopped, though, if you re-enter school)....now they're going to stretch that to 20? Also, there's a big push from this administration to push the private sector completely out of the student lending business....not sure where this fits in here, either. Lots to this story...

 

Income-based repayment already exists, along with loan forgiveness after 25 years.

https://www.dl.ed.gov/borrower/QCNews.do

As for screwing banks, the banks got a sweetheart deal for student loan. They assumed no risk as the feds guarantee the loans and the government also buys back loans from banks. I'm not crying too much for them.

 

As of last June, it does.

Oh, and I'm not crying for the banks (or, saying they got "screwed"), either. Good, easy, low risk profit for them.

Have to say, though, the private (bank based ) lenders were actually a lot better/easier for the students to deal with. They were also able to do some nice things for the folks who were responsible & paid their loans back on time. Just like with anything else, when you roll an entire process back into the govt. sector (dealing with the Direct Loan program), it gets really, really, really slow, cold, cumbersome, etc.

 

The kinds of programs being discussed here are great.

When I graduated from college I had massive student debt issues. But I agreed to teach espresso machine repair in the innercity for five years and now my PhD debt is under six figures.