Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

What can Obama do without Congress on student loans?

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion Donate to DU
 
IndyPragmatist Donating Member (556 posts) Send PM | Profile | Ignore Thu Oct-27-11 08:19 AM
Original message
What can Obama do without Congress on student loans?
He said that he would circumvent congress if necessary. However, I think that would just leave the door open to the courts overturning his plan because of how it was done.

Personally, I feel like the timing of this is a bribe to students and recent grads. It's a good idea, but the timing is very very odd. He sees that the 18-30 demographic is not nearly as excited about voting for him this time compared to 2008. Many of the things he talked about the other day were going to go into effect in 2014, he just bumped it up to before the election.

So what can he do without Congress? I really don't want to see President Obama do something now, only to be overturned by the courts after the 2012 election. That will really piss off a lot of young people if that happens, and may have serious political implications.
Printer Friendly | Permalink |  | Top
itsrobert Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 08:23 AM
Response to Original message
1. Why should he do anything?
These people sign up for student loans, nobody held a gun to their head. They need to pay them back.
Printer Friendly | Permalink |  | Top
 
democrat_patriot Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 08:32 AM
Response to Reply #1
2. They are paying them back. Just over a longer period.

No gun to the head? Try making a living without a degree. Possible, but the odds are against it.
Printer Friendly | Permalink |  | Top
 
Trailrider1951 Donating Member (933 posts) Send PM | Profile | Ignore Thu Oct-27-11 10:55 AM
Response to Reply #1
6. Robert, here are what the hard numbers look like from my
amortization spreadsheet that I put together for my student loans:

I consolidated my loans in 2001:

Date Rec'd Payment Type Payment Amt Appl to Princ Appl to Int Fees Princip Bal
3/2/2001 Mail $143.92 $0.00 $143.92 $0.00 $25,283.64


Here is what my latest payment information looks like:

Date Rec'd Payment Type Payment Amt Appl to Princ Appl to Int Fees Princip Bal
10/21/2011 Electronic Debit $236.69 $102.35 $134.34 $0.00 $20,369.36

And here are my totals to date, including my most recent payment:

Date Rec'd Payment Type Payment Amt Appl to Princ Appl to Int Fees Princip Bal
Totals: $19,296.91 $5,041.29 $14,255.62 $0.00 $20,369.36


So, you can see that after paying on the loans for about 10 years (this time frame includes about 10 months unemployment when I could not pay on the loan and the interest was added to the principle, around $4000+ in "capitalized interest"), I have paid nearly $20,000 on a loan of $25,283.64 and reduced it by only $5,000. The going interest rate when I consolidated was 8.25%, but I got a 0.25% reduction by signing up for electronic debit from my checking account. Oh, did I not mention that this loan CANNOT be refinanced for a lower interest rate. It CANNOT be discharged in bankruptcy. I am stuck with it. Fortunately, I am currently employed and current with my payments, but that could change in a heartbeat. Those poor students out there that cannot find jobs that will pay a living wage so that they can PAY those FRICKEN loans can only watch that principle grow and grow and grow.... Please try to have some compassion for them.
Printer Friendly | Permalink |  | Top
 
ellisonz Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 11:03 AM
Response to Reply #6
7. It's extortionate.
Edited on Thu Oct-27-11 11:03 AM by ellisonz
:applause:
Printer Friendly | Permalink |  | Top
 
itsrobert Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 12:18 PM
Response to Reply #6
8. Student Loan Insurance
wasn't available to you when you agree to to the loan?
Printer Friendly | Permalink |  | Top
 
Trailrider1951 Donating Member (933 posts) Send PM | Profile | Ignore Thu Oct-27-11 12:42 PM
Response to Reply #8
9. Student loan insurance?
WTF is that? My only choices were Default or Forbearance. I chose Forbearance. My payments were suspended, but all that interest I did not pay was added to the principle. Sucks to be me.
Printer Friendly | Permalink |  | Top
 
itsrobert Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 12:54 PM
Response to Reply #9
10. It's available at time you enter into loan contract
I agree they should rework loans for people that are in you situation, etc. My wife took out student loans. Finally paid it off after making sacrifices. Took 10 years of no luxuries.
Printer Friendly | Permalink |  | Top
 
Trailrider1951 Donating Member (933 posts) Send PM | Profile | Ignore Thu Oct-27-11 01:12 PM
Response to Reply #10
12. I was totally unaware of anything like that
My "Loan Consolidation Representative" never mentioned anything like that. In retrospect, he was only interested in my signature on the proper lines. Like I said, sucks to be me.
Printer Friendly | Permalink |  | Top
 
Demstud Donating Member (288 posts) Send PM | Profile | Ignore Thu Oct-27-11 01:15 PM
Response to Reply #12
13. Same here
Never heard of "student loan insurance" and have never received any info on it.
Printer Friendly | Permalink |  | Top
 
Marrah_G Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 02:50 PM
Response to Reply #6
18. Holy crap
Printer Friendly | Permalink |  | Top
 
Trailrider1951 Donating Member (933 posts) Send PM | Profile | Ignore Thu Oct-27-11 08:08 PM
Response to Reply #18
20. I'm going to update this for those who are not quite familiar
with the student loan scam:


www.studentloanjustice.org


We have been scammed. Both the banks and our so-called representatives in Washington, DC, are complicit.


This is my second favorite Pet Rant, next to the FRICKEN health insurance industrial complex. That is all.
Printer Friendly | Permalink |  | Top
 
Matariki Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 01:04 PM
Response to Reply #1
11. That's a crappy attitude.
Our nation, our society as a whole, will benefit from college being affordable and from not having a whole generation of people who either start their adult lives burdened with debt or forego higher education altogether. This isn't just a problem for the individuals who 'sign up for student loans', this is a problem for the future of our nation.

When I was in college back in the late 70's, college was *way* more affordable, there was lots of financial aid available for people who didn't have the good luck of being born into families that could afford to send them to college, and there was a very good government program of very low interest loans available to everyone. In 1980, my last year in college, Ronald Reagan was elected and immediately began to dismantlement student aid. Since then the cost of a college education has soared.

Your attitude of 'tough shit, everyone for themselves' is myopic.
Printer Friendly | Permalink |  | Top
 
itsrobert Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 01:31 PM
Response to Reply #11
15. Well, I couldn't afford college
Nobody gave a crap. Had to join the military to get my education. I don't go into debt unless I know I can pay it back.
Printer Friendly | Permalink |  | Top
 
Matariki Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 02:44 PM
Response to Reply #15
16. So fuck the future then?
You didn't "get yours", so no progressive social change?
Printer Friendly | Permalink |  | Top
 
Matariki Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 02:48 PM
Response to Reply #15
17. BTW - I'm assuming you did this post Reagan?
That was one of the deliberate moves his administration made - stripping financial aid to push poor & middle class people into the army.

Like I said, you have a crappy attitude. I'd think that suffering from those policies first hand you'd have some empathy for people coming after you and you'd fight for some social justice instead of just saying "screw everyone else".
Printer Friendly | Permalink |  | Top
 
Marrah_G Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 03:00 PM
Response to Reply #15
19. Robert- the answer to no one giving a crap is not not giving a crap.
If more people gave a crap about each other the world would be a better place.
Printer Friendly | Permalink |  | Top
 
Erose999 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 08:32 AM
Response to Original message
3. He thinks this will pacify the Occupiers and get them in for his re-election. Truth is he probably

can't do anything. But its making them think he's fighting for something for them. Just like in 2008, he's making a big progressive show, while the reality is he's just another Wall St. puppet.
Printer Friendly | Permalink |  | Top
 
seacaves Donating Member (321 posts) Send PM | Profile | Ignore Thu Oct-27-11 09:15 AM
Response to Original message
4. Here is a bit of information.
Printer Friendly | Permalink |  | Top
 
Yupster Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 09:17 AM
Response to Original message
5. Here's the way I understand the proposal
And I just read a few articles. I haven't read the proposal.

Any way, the proposal would be to limit the amount of payments to a percentage of what the person makes above the poverty level and limit the payback time to 25 years.

The example the article gave was a person graduates from a real good university with a $ 200,000 loan. If that person then went to work for a non-profit and made $ 25,000 a year the person would only have to pay back $ 1,000 a year. After 25 years the person would have paid back only $ 28,000 and the rest would be forgiven by the taxpayers.

Of course that is an extreme example, but when the government took over the student loan program a couple of years ago it was said it would save the taxpayers lots of money.
Printer Friendly | Permalink |  | Top
 
Demstud Donating Member (288 posts) Send PM | Profile | Ignore Thu Oct-27-11 01:27 PM
Response to Original message
14. I like the idea, but I'm confused about the "savings" to taxpayers.
Though I'm not familiar with all the details yet, it doesn't seem to address the root problem of universities costing too damn much. If costs keep rising more than wages, then won't having the taxpayers pay off the remainder of the loan cost the taxpayers more every year?
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Mon Oct 20th 2014, 12:15 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » General Discussion Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC