Republicans propose changes to student loan programs

[BMBiology]

"Current federal policies often encourage students to take on an irresponsible amount of debt, as documented in a recent report by the New America Foundation. Even the Obama administration admits the cost of its unilateral repayment schemes are skyrocketing and proposed changes to help rein in costs."

Nothing too specific yet. We will have to wait and see if there will be a cap on the amount of forgiveness.

http://edworkforce.house.gov/uploadedfiles/hea_whitepaper.pdf

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[BMBiology]

http://www.edcentral.org/white-house-ups-cost-estimate-income-based-

"Specifically, in 2010 when the president first proposed what is now PAYE, the cost of permitting past borrowers to use PAYE’s more generous terms was approximately $1.7 billion. The administration reported the cost for the same proposal in 2013 as approximately $3.5 billion. In 2014 it quoted the cost at approximately $7.6 billion – and that is after factoring in benefit reductions included in the proposal.2 A more apples-to-apples comparison—one without the benefit reductions—is probably closer to $10 billion. So what started out as a $1.7 billion proposal is now more than five times that cost at approximately $10 billion."

 

[confettiflyer]

Why a new thread? This is the same crap from April when the Obama budget came out...this is the same group that wants to cap loan forgiveness going forward effective 2015.

 

[BMBiology]

^^ Actually the first link is new. It was released a few months before the election.

 

[confettiflyer]

^^ Actually the first link is new. It was released a few months before the election.

I read that first link...like most things in Congress, long on ideas, short on specifics.

Devil's gonna be in the details. That "white paper" pretty much follows Republican doctrine of "government sucks."

 

[BestDoctorEver]

Why don't they bring interest down to 2-3% like it was 10+ years ago?

 

[BMBiology]

I read that first link...like most things in Congress, long on ideas, short on specifics.

Devil's gonna be in the details. That "white paper" pretty much follows Republican doctrine of "government sucks."

I don't see Obama jumping in and saving high income earners.

 

[confettiflyer]

I don't see Obama jumping in and saving high income earners.

Nope. But even Paul Ryan isn't making PSLF cuts/caps retroactive, which is your not-so-secret fetish.

Maybe you should run for Congress! I'm sure a bunch of tea baggers will vote for you.

 

[All4MyDaughter]

He said fetish. And tea bagger. LOL

 

[BMBiology]

We, the top 1%, want you to suffer.

The CBO will probably release its cost analysis soon. Watch for it.

If it is retroactive, I am sure high income earners will be the first target.

 

[BMBiology]

He said fetish. And tea bagger. LOL

I think you have a fetish on me. Sorry, I am not into older women!

 

[confettiflyer]

We, the top 1%, want you to suffer.

The CBO will probably release its cost analysis soon. Watch for it.

If it is retroactive, I am sure high income earners will be the first target.

I'm surprised page 4 of the house white paper didn't stand out for you. We've been talking on here a lot about cutting off federal loans to for-profit schools that graduate bum unemployed pharmacists and contribute to oversupply. For some reason, the white paper comes out against such regulations.

That would probably has a bigger impact on pharmacy overall.

Preventing a Federal Government Rating System

Members of the committee are deeply concerned about the Postsecondary Institution
Ratings System (PIRS) being developed by the Department of Education. This is an attempt
by the administration to rate institutions based on access, affordability, and student
outcomes. The administration is then expected to tie these ratings to an institution’s
eligibility to participate in federal financial aid programs. While we must increase
transparency, it is not the role of the federal government to impose a one-size-fits-all
formula that arbitrarily rates institutions, especially when we know that selecting a college
or university is a uniquely personal decision for each student and family. The PIRS will
unfairly judge our nation’s diverse colleges and universities, restrict consumer choice,
confuse families, and limit postsecondary options for low- and middle-income students.
Rather than implementing an arbitrary ratings scheme that attempts to dictate students’
needs, the federal government should provide useful information so students can make the
best possible decision.

 

[All4MyDaughter]

I think you have a fetish on me. Sorry, I am not into older women!

Well my post was referring to confettiflyer, but it's cute that you thought it was about you.

 

[BMBiology]

^ limit student loans = limit colleges. It is that simple.

 

[BMBiology]

Well my post was referring to confettiflyer, but it's cute that you thought it was about you.

Always stalking my posts and threads . But again, please move on.

 

[BestDoctorEver]

We, the top 1%, want you to suffer.

The CBO will probably release its cost analysis soon. Watch for it.

If it is retroactive, I am sure high income earners will be the first target.

Wait! Are you in the top 1%? I don't think the top 1% want people to suffer, but as we all know resources are finite; therefore, they just want to get a bigger share of them ( ok they want all)...

 

[notbobtrustme]

You could pretty much everyone's college tuition + everyone's outstanding student debt by not making stupid investments like the F-22 and F-35, which combined will cost over 3 trillion dollars and deliver a handful of planes that cost an entire year's tuition to fly for a single hour.

For example, Congress forced the Army to renovate and retrofit a bunch of tanks the Army stated it didn't want or need, to the tune of 300 million dollars, IIRC.

 

[BMBiology]

^ Mentally they will have this hanging over their head. Every election. Every budget proposal. Every cost analysis.

What if the cost starts to pile up and the government changes its mind? What if there is a public outcry? Would their loan still be given?

 

[All4MyDaughter]

Always stalking my posts and threads . But again, please move on.

Your obsessions are getting old. It's less cute and more creepy at this point.

 

[BMBiology]

^ people come to this forum for the latest information. If you don't like to read about student loans then just don't click on it. Yes, it is that simple.

 

[Digsbe]

The irresponsible loans in my opinion come from undergrads who take out too much for art degrees (or others) that wind up waiting tables with 80k+ in debt with no attempt at scholarships and spent their lives partying in school and spending too much on luxuries.

Graduate loans basically exist to offset poor undergrad choices. Our interest rates our higher, our federal aid benefits are basically non-existent and tuition is generally higher. The government will make their fill off of grads who earn higher taxable salaries and have higher debt amounts with a higher interest rate.

 

[BestDoctorEver]

You could pretty much everyone's college tuition + everyone's outstanding student debt by not making stupid investments like the F-22 and F-35, which combined will cost over 3 trillion dollars and deliver a handful of planes that cost an entire year's tuition to fly for a single hour.

For example, Congress forced the Army to renovate and retrofit a bunch of tanks the Army stated it didn't want or need, to the tune of 300 million dollars, IIRC.

These are not stupid investment because they serve a purpose of serving big defense contractors (i.e the top 0.01%), but you hear people talk about food stamps all the time, which is about 3% of federal budget...

It's getting sad out there now... The lower middle class is turning on the poor while the top 0.1% is laughing all the way to the bank...

 

[BestDoctorEver]

The irresponsible loans in my opinion come from undergrads who take out too much for art degrees (or others) that wind up waiting tables with 80k+ in debt with no attempt at scholarships and spent their lives partying in school and spending too much on luxuries.

Graduate loans basically exist to offset poor undergrad choices. Our interest rates our higher, our federal aid benefits are basically non-existent and tuition is generally higher. The government will make their fill off of grads who earn higher taxable salaries and have higher debt amounts with a higher interest rate.

What if having a degree in art is 'a calling'?

 

[Baller MD]

What if having a degree in art is 'a calling'?

Seriously, people should follow their passion.

 

[BidingMyTime]

^ limit student loans = limit colleges. It is that simple.

Is that a bad thing? The US is selling the "dream" that everyone should have a college degree....but given that 33% of people with college degrees are working at jobs that don't require college degrees, it would seem that we are college educating (at great cost) far more people than need to be college educated. Not to mention, the great number of unknown people who take out college loans, yet never graduate, either because they were not prepared to do the work required at the college level, or because they realized college was a money pit that wouldn't do much to help them in their career.

 

[PharmtoCS]

^ limit student loans = limit colleges. It is that simple.

Is that a bad thing? The US is selling the "dream" that everyone should have a college degree....but given that 33% of people with college degrees are working at jobs that don't require college degrees, it would seem that we are college educating (at great cost) far more people than need to be college educated. Not to mention, the great number of unknown people who take out college loans, yet never graduate, either because they were not prepared to do the work required at the college level, or because they realized college was a money pit that wouldn't do much to help them in their career.

That is a good thing. There are already too many students graduating from college with little demand for their skills they gained from their education. The same is happening at the professional level (law, pharmacy, etc). That is why I recommend that students go into a career they do not hate, is in demand, and does not require an astronomical amount of student loans. Software engineering in one example, which is why I have been recommending it to those who are worried about saturation in pharmacy.

 

[confettiflyer]

Software engineering in one example, which is why I have been recommending it to those who are worried about saturation in pharmacy.

That's what people said about nursing and pharmacy 10 years ago. Everyone needs to cool it with the "CS careers are plentiful and pay well!" train.

Just wait 'til that VC money runs dry and the party will be over.

 

[user3]

http://www.edcentral.org/white-house-ups-cost-estimate-income-based-

"Specifically, in 2010 when the president first proposed what is now PAYE, the cost of permitting past borrowers to use PAYE’s more generous terms was approximately $1.7 billion. The administration reported the cost for the same proposal in 2013 as approximately $3.5 billion. In 2014 it quoted the cost at approximately $7.6 billion – and that is after factoring in benefit reductions included in the proposal.2 A more apples-to-apples comparison—one without the benefit reductions—is probably closer to $10 billion. So what started out as a $1.7 billion proposal is now more than five times that cost at approximately $10 billion."

I bet most PAYE forgiveness will come from interest, not principal. In effect, these "costs" are not really costs, but foregone income to the government. If interest rates were reduced to 0-3%, most people would be able to pay back their loans without needing forgiveness.

Rather than "forgiveness" (which carries an awful stigma of handout/entitlement with the public and GOP politicians), I think slashing interest rates and allowing unlimited tax deduction for student loan repayment could be a much more tenable solution to this issue.

 

[BMBiology]

I bet most PAYE forgiveness will come from interest, not principal. In effect, these "costs" are not really costs, but foregone income to the government. If interest rates were reduced to 0-3%, most people would be able to pay back their loans without needing forgiveness.

Rather than "forgiveness" (which carries an awful stigma of handout/entitlement with the public and GOP politicians), I think slashing interest rates and allowing unlimited tax deduction for student loan repayment could be a much more tenable solution to this issue.

Where are you going to be able to borrow unsecured loan at 0-3%?

The government gives student loans to pretty much anyone who applied. There is also abuse. That is what causing the high interest rate.

 

[deleted390966]

Don't be fooled into thinking IRB or PAYE will help you. They were designed to help low-income earners pay back their loans. They can, and actually do, hurt high-income earners. Just play around with the numbers: Repayment Estimator

 

[Baller MD]

Republicans... lol... nothing good will come from them.

Don't be fooled into thinking IRB or PAYE will help you. They were designed to help low-income earners pay back their loans. They can, and actually do, hurt high-income earners. Just play around with the numbers: https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action

That is why Obama put a cap on loan forgiveness right?

 

[confettiflyer]

That is why Obama put a cap on loan forgiveness right?

I miss George Bush...he started this PSLF gravy train, lol.

 

[Mad Jack]

I miss George Bush...he started this PSLF gravy train, lol.

Sure, a few of my classmates had to die in a pointless war he started, but, you know, PSLF, so it's all good!

 

[BMBiology]

That is why Obama put a cap on loan forgiveness right?

Obama also got rid of subsidize graduate student loans.

 

[user3]

Don't be fooled into thinking IRB or PAYE will help you. They were designed to help low-income earners pay back their loans. They can, and actually do, hurt high-income earners. Just play around with the numbers: https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action

believe it or not, there are professional school financial aid offices that straight up tell students that they won't be able to pay back their COA loans, so to depend on PAYE. I remember reading this about USC dental school ($100K+ annual COA).

despite this, the worst part is that if anything happens to these programs, schools will certainly not be bailing their grads out-- instead, grads will be left holding the bag.