Short-

Help me understand. Where does it say they don't have to pay the loans back? 

http://www.foxbusiness.com/personal-finance/2011/10/26/obama-acts-to-ease-burden-student-loans/
 
As I understand it, this change won't really make much change at all.

Student debt will also be forgiven after 20 years, compared with 25 years under current law.

I believe you have to pay on them for the 20 years, so it's not like people haven't at least had to pay on them, could be worse . . . they could just be handing out free money for houses, cars, appliances, etc (oh wait they already did).

You need to get your facts straight shorthairsrus. The idea of the plan is to make the payments based off of your income. The payments will grow as one's income grows.  Nearly everyone will still have to pay back the entire amount they borrowed plus interest. If one hasn't paid back all of the loans plus interest over a 20 year period, the remainder will be forgiven. Currently, the period is over 25 years.
Shorthairsrus: When universities are increasing tuition by 15% per year (legal maximum in minnesota) something is wrong. It is not right that students need to take on a huge financial burden to help the universities make more money.
Bottom line is that the univerisites and colleges around the country have been abusing the student loan system for years. They have been increasing tuition at a very rapid rate to make more money at the student's expense. Obama is trying to make things a little easier for students just graduating from school.
I see that you have a son that is in seventh grade. Unless you have an older child that has already went through school, your opinion has no validity. We will see if your opinion changes when your son graduates from college with 30-100K in student loans and has difficulty finding a job. I'm sure you will be appreciative that Obama made these changes.

fargoflyfish Said:
You need to get your facts straight shorthairsrus. The idea of the plan is to make the payments based off of your income. The payments will grow as one's income grows.  Nearly everyone will still have to pay back the entire amount they borrowed plus interest. If one hasn't paid back all of the loans plus interest over a 20 year period, the remainder will be forgiven. Currently, the period is over 25 years.
Shorthairsrus: When universities are increasing tuition by 15% per year (legal maximum in minnesota) something is wrong. It is not right that students need to take on a huge financial burden to help the universities make more money.
Bottom line is that the univerisites and colleges around the country have been abusing the student loan system for years. They have been increasing tuition at a very rapid rate to make more money at the student's expense. Obama is trying to make things a little easier for students just graduating from school.
I see that you have a son that is in seventh grade. Unless you have an older child that has already went through school, your opinion has no validity. We will see if your opinion changes when your son graduates from college with 30-100K in student loans and has difficulty finding a job. I'm sure you will be appreciative that Obama made these changes.

Abuse? Thats crazy, everyone knows that a single book costs $400(sarcasm disclaimer) heck I've been outta college for 6 years $400 is probably a bargain nowadays.

fargoflyfish Said:
You need to get your facts straight shorthairsrus. The idea of the plan is to make the payments based off of your income. The payments will grow as one's income grows.  Nearly everyone will still have to pay back the entire amount they borrowed plus interest. If one hasn't paid back all of the loans plus interest over a 20 year period, the remainder will be forgiven. Currently, the period is over 25 years.
Shorthairsrus: When universities are increasing tuition by 15% per year (legal maximum in minnesota) something is wrong. It is not right that students need to take on a huge financial burden to help the universities make more money.
Bottom line is that the univerisites and colleges around the country have been abusing the student loan system for years. They have been increasing tuition at a very rapid rate to make more money at the student's expense. Obama is trying to make things a little easier for students just graduating from school.
I see that you have a son that is in seventh grade. Unless you have an older child that has already went through school, your opinion has no validity. We will see if your opinion changes when your son graduates from college with 30-100K in student loans and has difficulty finding a job. I'm sure you will be appreciative that Obama made these changes.

I couldnt disagree more. since when is it okay for anyone to not pay their bills. If you dont want to walk away from school with a 30-100k debt, then work while you go like tons of people do myself included. It isnt the "governments" job or place to "forgive" these loans now  or ever. How did society come to the conclusion that people should get something for nothing.

I have a sophmore in college, a senior in high school, and 2 kids in elementary school. I will help all of my kids equally and what isnt covered by my wife and I they cover themselves...their choice. I wont nor will my kids expect anyone else to pony up and pay for their education. No one is forced to go to school and take on these debts.
Its part of being an adult, responsibilities come with growing up.  

As a recent graduate, I am currently on the income-based repayment plan. Although I am not an Obama supporter, I do appreciate the changes being made to the current system. With nearly 70k in student loan debt, the Feds wanted me to pay nearly $800 per month over the course of 10 years to repay my loans. The income-based repayment plan enabled me to knock my loan term back to 25 years and cut my payments in half!

SHORTHAIRSRUS...I'll have all of my loans paid off by the time your child makes it to college, so you'll be able to focus on his/her debt instead of every other American. By that time you'll understand the complexities and hardships associated with student loan debt!

johnr Said:

I have a sophmore in college, a senior in high school, and 2 kids in elementary school. I will help all of my kids equally and what isnt covered by my wife and I they cover themselves...their choice. I wont nor will my kids expect anyone else to pony up and pay for their education. No one is forced to go to school and take on these debts.
Its part of being an adult, responsibilities come with growing up.  

Agreed

Universities are run like businesses.  They are primarily interested in $$$$$. 

Shorthairs and Johnr; please read or understand a topic before you post.  Seriously...  There's no loan forgiveness in this program, or any requirement that "you" pay for someone else's debt; only a way to limit the amount someone has to pay per month.  If they pay less, they have to pay over a longer period of time; with interest. 

I think this program is helpful, but doesn't address the real issue, which is the skyrocketing costs of higher education.  With books costing in exess of $500 each and tuition regularly exceeding $15,000/year, it's hardly worth getting a post-secondary degree anymore. 

Bri-Guy2 Said:
Shorthairs and Johnr; please read or understand a topic before you post.  Seriously...  There's no loan forgiveness in this program, or any requirement that "you" pay for someone else's debt; only a way to limit the amount someone has to pay per month.  If they pay less, they have to pay over a longer period of time; with interest. 

I think this program is helpful, but doesn't address the real issue, which is the skyrocketing costs of higher education.  With books costing in exess of $500 each and tuition regularly exceeding $15,000/year, it's hardly worth getting a post-secondary degree anymore. 

Loan forgiveness after 20 years or less

After 20 years of responsible payments under the income-based repayment (IBR) plan, the remainder of a federal loan will be forgiven under Obama’s new plan. Currently, those remaining debts are forgiven after 25 years.

Some borrowers working in public-service and nonprofit jobs qualify for loan forgiveness after 10 years. More would qualify for this if they take advantage of the consolidation of loans under Obama’s new plan

 

ndbwhunter Said:
As a recent graduate, I am currently on the income-based repayment plan. Although I am not an Obama supporter, I do appreciate the changes being made to the current system. With nearly 70k in student loan debt, the Feds wanted me to pay nearly $800 per month over the course of 10 years to repay my loans. The income-based repayment plan enabled me to knock my loan term back to 25 years and cut my payments in half!

SHORTHAIRSRUS...I'll have all of my loans paid off by the time your child makes it to college, so you'll be able to focus on his/her debt instead of every other American. By that time you'll understand the complexities and hardships associated with student loan debt!

Wow that would hurt anyone coming outta college and joining the workforce, grad or not. I would rather it take people coming out of college longer to pay off their debt while still being able to get out and buy a few things like a car or place to live. Maybe get out and be able to spend a few bucks at places that employ people rather than expect them to sit at home and eat ramen for another 10 years. I'm not a big fan of loans but these days it has basically become what is expected as well as the only option for many people. My biggest beef I would say though is with the cost in general. It would be nice to look at heads of universities and say "Ya know what? School dosent cost that @#$@#$# much."

College costs are getting ridiculous, and here in ND we are probably the cheapest.  Say it costs $10,000 for a semester of college.  You take 15 credits which means you're in class for about 15 hours per week x a 16 week semester...comes out to about $42 per hour.  Imagine when you're at UND or NDSU and you have a class of 200 students how much money is being raked in for that class and the instructor is probably only getting a couple grand of it.  Way too much pork in the university system.  When UND built that 15 million dollar parking ramp that pretty much made up my mind that I'd never donate even though I graduated there.  Spend spend spend. 

John,
Just because you consolidate your loans, doesn't mean that you instantly get them forgiven after 10 years. They are going to offer a 0.5% interest rate reduction if you consolidate. This will reduce the interest rate from 6.8% to 6.3%.  I have never heard anything mentioned about the loans being forgiven early if you consolidate.

Are you saying it is bad for people that are in public service to get some of their loans forgiven? If there are additional benefits for people in public service, that would essentially be an extension of the GI bill. I would hope that everyone in our country would support this since these are the people that are ensuring our freedom.

The other stipulations for getting your loans forgiven are reserved for very extreme circumstances such as disability, etc... People that decide to work in certain profession in certain areas also qualify for additional benefits. However, these opportunities are in places where most people would not choose to live.

Thanks for the lesson on becoming an adult John. It is funny to listen to you and many others on here go on there anti-obama rants. I hope that you have denied every stimulus, tax break or other incentives that the government has ever issued (even under a republican president). If not, you have essentially taken a handout from the government which makes you a hypocrite.

PS. I pay over $2000/month for my student loans and have started my own business. Trust me, I know what it means to make sacrifices and to take on responsibility.

 If one hasn't paid back all of the loans plus interest over a 20 year period, the remainder will be forgiven. Currently, the period is over 25 years. PER QUOTE from fargofly

Please some fresh college educated person please explain to me -- what forgiven stands for.    This old college educated brain deals with clients with 1099C wo bankrupcty all the time ------ imo forgiven = cancellation of debt.   

So what is your take on this?

Holy crapola we've lost our minds in this country.

Go ahead and borrow $50,000-$100,000 from Uncle Sam (actually it's your neighbors tax money or other gov't bond investment money that you're borrowing). Then pay it off - but only based on your job pay. After 20 years, if you miscalculated and couldn't get a decent job (maybe you shouldn't have gone to school or worked your way through school rather than borrow), then just screw your neighbor (and your kid's future) for the balance of the loan. It's simply magical! The feds will just borrow more money to offest what YOU spent but YOU didn't PAY BACK!!!!!

Hey, I know, while we're at it, let's make mortgage payments based on income too. And if you don't pay it off after 20 years, your hard-working neighbors will do it - by force basically - ala the feds' taxation. The house is now yours. Congrats lard a$$, you screwed your neighbors out of some money. Feels good doesn't it?

Gee, that's no incentive to buy more house than you need or more than you can pay for is it? Sound familiar???? Now they want to create a college loan bubble just like the fannie/freddie housing bubble?

We have lost our way folks, simply lost our way. This country, or at least how I remember it, is toast. I used to think people who thought Obama was TRYING to f this country were being overly dramatic. Not so much any more. When's this crap going to end?

Shorthairsrus,
Since you are working with bankruptcy clients all of the time, I'm sure you have a calculator handy. Do the math on monthly payments of 10% of your income over 20 years. Even for someone making $30K/year, they will end up paying $60K over 20 years. $30K is on the bottom end of the salary spectrum. Nearly everyone will end up paying all of their loans and very few will ever get their loans forgiven(canceled).
$40k/year salary=$80Kpaid over 20 years
$50K/year salary=$100K paid over 20 years

This should clear things up for most of you that are concerned about everyone not having to pay their loans.

ndbwhunter Said:
As a recent graduate, I am currently on the income-based repayment plan. Although I am not an Obama supporter, I do appreciate the changes being made to the current system. With nearly 70k in student loan debt, the Feds wanted me to pay nearly $800 per month over the course of 10 years to repay my loans. The income-based repayment plan enabled me to knock my loan term back to 25 years and cut my payments in half!

SHORTHAIRSRUS...I'll have all of my loans paid off by the time your child makes it to college, so you'll be able to focus on his/her debt instead of every other American. By that time you'll understand the complexities and hardships associated with student loan debt!

Instead of being for this program --- and sitting on your doof -- you ought to be out fighting and fighting and more fighting -- this wallstreet sheeettt that went on those loser were complaining about what?? come on guys -- higher ed  real easy fix ---- with technology now days --- why do we need all the brick and motar???????   Why f###g printed text books for crying out loud??? its a another good ole boys club that needs to be ended.    Take charge and end it for your kids.  Lets face it a state with under 700k of people and we have how many universiities???  Two D1 schools - i give up.  What is the real cost of education?

fargoflyfish Said:
John,
Just because you consolidate your loans, doesn't mean that you instantly get them forgiven after 10 years. They are going to offer a 0.5% interest rate reduction if you consolidate. This will reduce the interest rate from 6.8% to 6.3%.  I have never heard anything mentioned about the loans being forgiven early if you consolidate.

Are you saying it is bad for people that are in public service to get some of their loans forgiven? If there are additional benefits for people in public service, that would essentially be an extension of the GI bill. I would hope that everyone in our country would support this since these are the people that are ensuring our freedom.

The other stipulations for getting your loans forgiven are reserved for very extreme circumstances such as disability, etc... People that decide to work in certain profession in certain areas also qualify for additional benefits. However, these opportunities are in places where most people would not choose to live.

Thanks for the lesson on becoming an adult John. It is funny to listen to you and many others on here go on there anti-obama rants. I hope that you have denied every stimulus, tax break or other incentives that the government has ever issued (even under a republican president). If not, you have essentially taken a handout from the government which makes you a hypocrite.

PS. I pay over $2000/month for my student loans and have started my own business. Trust me, I know what it means to make sacrifices and to take on responsibility.

So those that shovel $hit "for the public" deserve a break and those that shovel $hit for a private company don't?

Can you explain (WITH A STRAIGHT FACE) how it's fair that these "chosen ones" get forgiven and other won't? WTF????

LOOK AT THIS LIST! LEGAL SERVICE PROVIDERS??? COLLEGE FACULTY ON RESERVATIONS? WHEN DO THE REST OF US GET PREFERENCE POINTS OR FORGIVENESS?? 

Public service is emergency management, government (excluding time served as a member of Congress), military service, public safety and law enforcement (police and fire), public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations), public education, early childhood education (including licensed or regulated childcare, Head Start, and State-funded prekindergarten), social work in a public child or family service agency, public services for individuals with disabilities or the elderly, public interest legal services (including prosecutors, public defenders and legal advocacy on behalf of low-income communities at a nonprofit organization), public librarians, school librarians and other school-based services, and employees of tax exempt 501(c)(3) organizations. Full-time faculty at tribal colleges and universities, as well as faculty teaching in high-need subject areas and shortage areas (including nurse faculty, foreign language faculty, and part-time faculty at community colleges), also qualify.

fargoflyfish Said:
Shorthairsrus,
Since you are working with bankruptcy clients all of the time, I'm sure you have a calculator handy. Do the math on monthly payments of 10% of your income over 20 years. Even for someone making $30K/year, they will end up paying $60K over 20 years. $30K is on the bottom end of the salary spectrum. Nearly everyone will end up paying all of their loans and very few will ever get their loans forgiven(canceled).
$40k/year salary=$80Kpaid over 20 years
$50K/year salary=$100K paid over 20 years

This should clear things up for most of you that are concerned about everyone not having to pay their loans.

Explain with a straight face why anyone other than sick/disabled should get a loan forgiven and why. And explain who is going to decide who gets forgiven and why.

Public service careers get loans forgiven after 120 monthly payments?? That's just 10 years. WHY IS THAT? Are they somehow better than everyone else?

I am so sick and tired of the gov't choosing winners and losers in this country. This is crap and you know it.

fargoflyfish Said:
Shorthairsrus,
Since you are working with bankruptcy clients all of the time, I'm sure you have a calculator handy. Do the math on monthly payments of 10% of your income over 20 years. Even for someone making $30K/year, they will end up paying $60K over 20 years. $30K is on the bottom end of the salary spectrum. Nearly everyone will end up paying all of their loans and very few will ever get their loans forgiven(canceled).
$40k/year salary=$80Kpaid over 20 years
$50K/year salary=$100K paid over 20 years

This should clear things up for most of you that are concerned about everyone not having to pay their loans.

So that is financing 101 fargofly --- you should of took that class along with econ.  We need to stop these programs --- all this does and help the higher ed  raise your tuition more.    Reality is that many will have debt forgiven -- drive down the street during the day how many people work anymore.   --  somebody once said nobody will be getting the earned income credit and that they will work get paid more and it will cost nothing vs. the benefit.  The credit was designed as a welfare fix to get people working --- look at this stat  --- In 2008, more than 24 million taxpayers received over $48 billion in earned income credits. 

hmm where is the benefit -- doesnt exist -- smoke screen. 

why is it when it benefits someone that they dont see beyond the smoke?