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View Full Version : Obama Act to Ease Student Loan Debts.....



MMC
10-26-2011, 07:13 AM
http://news.yahoo.com/obama-acts-ease-burden-student-loans-001017820.html

Obama plans to accelerate a plan to cap student loan payments at 10 percent of income, bringing it forward to start in 2012 instead of 2014.

"Steps like these won't take the place of the bold action we need from Congress to boost our economy and create jobs, but they will make a difference," he said in a statement.

The loans initiative will be the third such move by Obama in as many days, following action to aid homeowners and boost hiring of military veterans. The White House wants to show he is an activist president battling a "do-nothing" Congress.

Americans owe more on student loans than on outstanding credit card debt, and total loans outstanding are slated to exceed $1 trillion this year, according to the Federal Reserve Bank of New York.

The White House estimates the loan changes could cut monthly payments for 1.6 million graduates.

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

Obama will also make changes to allow 6 million students to bundle together certain federal loans to allow a single monthly payment, reducing the risk of default caused by juggling multiple debt obligations.....snip~

He is right that it will not create jobs. Plus now the numbers have been released as to how College prices are up again. Where does he think he can get this money?

http://news.yahoo.com/college-prices-again-states-slash-budgets-041002458.html

As President Obama prepared to announce new measures Wednesday to help ease the burden of student loan debt, new figures painted a demoralizing picture of college costs for students and parents: Average in-state tuition and fees at four-year public colleges rose an additional $631 this fall, or 8.3 percent, compared with a year ago.

In the College Board's latest price report, some of the increase was driven by huge increases at public universities in California, which enrolls 10 percent of public four-year college students and whose 21 percent tuition increase this year was the largest of any state.

But even without California, prices would have increased 7 percent on average nationally — an exceptional burden at a time of high unemployment and stagnant family incomes.

"To see increases of 20 percent, as we saw in California, to see gains of 15 percent in other states, is simply unprecedented," Hartle said. "Tuition is simply being used as a revenue substitute in many states.".....snip~

College Tuitons have doubled the price of inflation.

Colleges award merit scholarships. Federal Pell Grants do support the neediest, and spending on them has nearly doubled in the last two years to around $35 billion (9.1 million students got grants averaging $3,828).

But the latest College Board figures highlight a rapid recent increase in indirect government support through tuition and other tax credits, which have reached almost $15 billion. Around 12 million people are now taking advantage of tax benefits averaging more than $1,200. And while recent changes make low-income families better able to take advantage of those credits, a growing proportion of the benefit goes to families earning more than $100,000.

Obama and the Dems presses Eduction.....because they knows the costs have gone up and doubled. Seems they always do this and then somehow each time the cost is higher than the previous Presidency.

waltky
10-29-2012, 10:00 PM
Mebbe there should be a debt limit...
:huh:
Students' $1T in Debt Comes With Complaints About Lenders
10/29/12 --- It's a double-downer for student loan borrowers, who face steadily higher debt burdens and are more likely to file complaints against student loan lenders -- conclusions drawn in a comprehensive report issued by the Consumer Financial Protection Board.


In it, the CFPB says:

* Outstanding student loan debt stands at just over $1 trillion.
* Private student loan debt only accounts for about $150 billion.
* There is about $8 billion in private loans already in default on roughly 850,000 student loans.
* The CFPB has handled 2,900 private student loan complaints in less than seven months.
* The average amount of what the CFPB calls "relief amounts" from those complaints was $1,572.
* 87% of all complaints against college lenders were concentrated on just seven companies

Aside from the huge amount of cash owed by student loan borrowers, what issues are college loan consumers most upset about? The CFPB notes that they're the same issues that vex mortgage borrowers, specifically:

* Improper application of payments
* Drawn-out loan error resolutions
* The inability to reach the right lender contact to resolve a problem
* Too much paperwork
* Inability to refinance a loan or modify debt

[url=http://www.thestreet.com/story/11750723/1/students-1t-in-debt-comes-with-complaints-about-lenders.html?puc=unitedonli&cm_ven=UNITEDONLI]MORE]/url]