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Thursday, June 14, 2012

#Obama #edu - Student Loan Payback Caps & Low Interest Rates

6/20/2012

President Obama held an afternoon event on the "countdown" regarding Congressional inaction on "student loan interest rates"

6/13/2012

How many "students" and how many "parents" of college age students are aware of these important policies and policy intentions.  In the end you might think these are bad or good policies.

Who is going to get in the way ... Congress, banks, Jamie Dimon, loan services? Why? The former because no one pays attention.  The later group because they can't make as much money.

Another group is the 1% because they can afford to pay for their kids education out-of-pocket and they do not want you to compete with them on entrance exams.

Student loan payback gets White House attention direct from CNN site

An earlier version of this story gave the incorrect current student loan rate. The correct rate is 3.4%, which would become 6.8% if Congress does not extend the lower rate.

From CNNMoney via http://ozarksfirst.com/fulltext?nxd_id=659122 end of the article

Some 35 million graduates have student loan debt, which at $904 billion nationwide, stands bigger than outstanding credit card debt.

The terms of the income-based repayment program are about to get more generous for loans that will be originated this school year. Thanks to past laws that the Obama administration fast-tracked, monthly payments will be capped at 10% of discretionary income and loan forgiveness kicks in after 20 years on loans taken out this year for future graduates.

The White House announcement came the same day Senate Majority Leader Harry Reid offered a new olive branch to Republicans. He suggested a bipartisan way to pay the $6 billion cost of extending 3.4% interest rates for federal student loans to undergraduates another year. Congressional negotiations are ongoing, aides say.

From CNNMoney via http://ozarksfirst.com/fulltext?nxd_id=659122 early in the article

The deadline for Congress to extend the low 3.4% interest rate on student loans is fast approaching. But the Obama administration, eager to make college debt a re-election issue, is looking for a way to lessen the burden on graduates.

Last week, the White House rolled out a plan to make it easier for graduates to enroll in a special program that caps loan repayment, based on income.

Under the present terms of the 4-year-old Income-Based Repayment Plan, graduates who enroll get charged 15% of their monthly discretionary income to pay off loans. All debt is forgiven after 25 years.
At least food for thought ... don't believe everything you hear ... but not too bad !



WI 1848 Forward: #Obama #edu - Student #Loan Payback Caps & Low Interest Rates : #47% #99% #edu #Pell vs #1% #elites

#Obama #edu #47% #99% #Pell Grants WI 1848 Forward: Student #Loan Payback Caps & Low Interest Rates vs #1% #elites

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