Gais! Gais! I heard that Obama was going to personally go door-to-door around America and give you $100 cash and a big hug if you're poor, and kick you square in the balls if you're rich. That's what my friends told me via colorful anecdotes and humorous bouts of charades, anyway.
I always knew that the unemployed and underemployed were really running a scam.
Now I know that they're effectively rich!
Dumbass, the game is to make the proles feel rich and then poor and then rich and then ....
Dumbass
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What a man believes upon grossly insufficient evidence is an index into his desires -- desires of which he himself is often unconscious. ... The origin of myths is explained in this way.
I always knew that the unemployed and underemployed were really running a scam.
Now I know that they're effectively rich!
It's basically a Ponzi scheme.
.................
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"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both." ~ Louis D. Brandeis
"Psychos do not explode when sunlight hits them, I don't give a fuck how crazy they are." ~ S. Gecko
You guys are aware that the IRS classified debt forgiveness as income, yes?
If you owe me $100 and I forgive the loan, you own the IRS tax on that $100 as income.
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What a man believes upon grossly insufficient evidence is an index into his desires -- desires of which he himself is often unconscious. ... The origin of myths is explained in this way.
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What a man believes upon grossly insufficient evidence is an index into his desires -- desires of which he himself is often unconscious. ... The origin of myths is explained in this way.
The forgiveness doesn't come until/unless one has made payments at about 10% of their discretionary income for 20 years (down from 25 years) and still has a balance. There is no emergency in getting the IRS rules changed
Quote:
Starting in 2014, borrowers will be able to reduce their monthly student loan payments to 10 percent of their discretionary income. But President Obama realizes that many students need relief sooner than that. The new "Pay As You Earn" proposal will allow about 1.6 million students the ability to cap their loan payments at 10 percent starting next year, and the plan will forgive the balance of their debt after 20 years of payments. Additionally, starting this January an estimated 6 million students and recent college graduates will be able to consolidate their loans and reduce their interest rates.We Can't Wait: Obama Administration to Lower Student Loan Payments for Millions of Borrowers | U.S. Department of Education
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What a man believes upon grossly insufficient evidence is an index into his desires -- desires of which he himself is often unconscious. ... The origin of myths is explained in this way.
So, how does everyone that has paid for their schooling already by working hard and saving feel about paying for a contemporaries schooling that partied from 10th grade to Degree?
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What a man believes upon grossly insufficient evidence is an index into his desires -- desires of which he himself is often unconscious. ... The origin of myths is explained in this way.
Thoughts after reading LadyShea's link:
The loan consolidation was always an option. Just some people didn't get advice about that, or didn't remember. It's not like the loan companies were forthcoming.
0.5% reduction in interest is a help, but many student loans have interest rates of 8%, and that's the federally capped loans. Private loans can be higher. It's also nice that loans are forgiven after 20 years, in some cases (my loan is for 30 years for example).
Also forgiving loans after 10 years if you work in the public sector is nice, it used to be that the only ones forgiven were doctors doing primary care in underserved areas. A pretty select group.
It's great that the government is trying to advise people about the loans and their options, but most of the new benefits were already available when I got my loan information, 10 years ago.
There comes a point when there are not enough producers for the takers.
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What a man believes upon grossly insufficient evidence is an index into his desires -- desires of which he himself is often unconscious. ... The origin of myths is explained in this way.
They already forgive student loan debt after 25 years. They are lowering it from 15% to 10% and dropping it to 20 years.
Student loans are from private lenders that have chosen to participate under the Federal guidelines. There are some subsidized loans but the government is not handing tax dollars out directly, nor are the lenders forced to offer them. They offer them because they make money.
ETA: I may be totally wrong about the above, see my follow up post below
I seem to recall that teachers could also get a portion of their loans forgiven if they served some minimum number of years in designated underserved areas.
__________________ Old Pain In The Ass says: I am on a mission from God to comfort the afflicted and afflict the comfortable; to bring faith to the doubtful and doubt to the faithful.
Didn't the federal government recently take over the initiation of all new student loans?
__________________ Old Pain In The Ass says: I am on a mission from God to comfort the afflicted and afflict the comfortable; to bring faith to the doubtful and doubt to the faithful.
That may be, I work in a health field so it may also be physician assistants and the like that I recall. Expanding services in rural areas always seemed like a good idea to me.
"non-profits that provides one or more of the following public services:
• Emergency management, • Military service, • Public safety, • Law enforcement,
• Public interest law services, • Early childhood education (including licensed or regulated childcare, Head Start, and state-
funded pre-kindergarten), • Public service for individuals with disabilities and the elderly, • 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, • Public library services, and • School library or other school-based services.
In addition, the employer must not be a labor union, a partisan political organization, or an organization that is engaged in religious activities (unless the qualifying public services it provides are unrelated to religious instruction, worship services, or proselytizing)."
I believe that's roughly the same as when I got out of school. It's hardly new if it's been around a year.
I thought they did away with direct loans. I may be wrong. I didn't go to college.
Also unlike other debt, student loans cannot be included in bankruptcy, so it seems to me over 20 years with interest, most get paid back.
Maybe someone can dig up a student loan balance sheet for the Federal Government. Does it cost money or make money or break even?
Probably, it looks like they just don't give money to banks to provide loans anymore.
The default rate is relatively low, you can't have them forgiven during bankruptcy, the interest is tax deductible, but it can be fairly high interest.
Adem had something about it a while back.
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What a man believes upon grossly insufficient evidence is an index into his desires -- desires of which he himself is often unconscious. ... The origin of myths is explained in this way.
I have to throw in with Jerome here for a moment (shudder), on dual grounds.
(1) There are parallels to the mortgage finance catastrophuck. It is easy for people who have little chance of getting a degree to get a loan. There should be tighter standards for eligibility addressing this. It is not doing anyone a favor to lend them the bucks for one of the for-profits, then have them drop out, now in debt and still uneducated. Usury?
Perhaps trial smaller loan amounts, with stipulations that the money be spent on any needed remedial English and Math first, would be in order.
(2) Is making large amounts of borrowed money available to students a driver behind the steep increases in tuition costs? If not, what?
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Chained out, like a sitting duck just waiting for the fall _Cage the Elephant
They can't throw money at these kids and tell them "You'll make it back" when there is no guarantee (and few high paying jobs for recent grads). However, tuition costs are too high to really allow people to work their way through school and saving up enough is also difficult.
There are kids that should go to college but can't and those that probably shouldn't be there but are. When I was like 28 I decided to take Algebra at a local community college. Though I had passed it in high school I felt like I didn't really understand it. A single class was like 180.00 so I also took an intro to Criminal Justice just for fun. I was the top student in both classes, even though these kids were all 18...they had just taken Algebra in high school! They should have kicked the old lady's ass.