Tuesday, October 25, 2011

Obama Announces Executive Action to Help Student Loan Borrowers

I was on a conference call today with the White House to discuss President Obama's plan to help student loan borrowers. The piece can be read here.

8 comments:

None said...

So, I know this doesn't address bankruptcy concerns, and it doesn't apply to private loans, which make me rather unenthusiastic about it to begin with. I assume 10% of discretionary income is a reduction compared to the current federal IBR and ICR programs. But what about the tax issue. So it's 20 years instead of 25. Big deal. Until further notice, if it's a tax event, it just means that it comes 5 years earlier than now. I realize only so much can be done by executive order, but what am I missing. Is this supposed to be a big deal?

Anonymous said...

I will try posting this again:

This plan really does not help as many people as it could or should. The IBR plan still does not address the issue of being married in a community property state (consisting of nine states, CA and Texas being two of them) while trying to deal with IBR.

I think it is really sad that this is another illusion perpetrated on the borrower giving them the impression that they are being helped. If this administration was serious about helping people, it would lower interest rates for all student borrowers. Paying 6.8 percent interest on an educational loan when interest rates are at historic lows is ridiculous.

This is sad. It shows that our politicians are still out of touch.

Anonymous said...

More "hope and change?" No. People, we are approaching an election year. Obama is trying to regain the faith of the millenials and the "youth" vote. Remember that Obama supported a law that allows robocallers from India call centers to call student loan debt borrowers on their cell phones. This "aid package" is an empty campaign promise. Obama can sign an executive order to implement this policy but he will have it dragged out in Congress and blame the Republicans for not passing it. Obama is a phony. He is on the Tonight Show right now jive talking with Jay Leno. Wonder why he is on NBC and not on CBS? GE owns NBC. GE gives millions to Obama in exchange for tax breaks and tax dollars on solar R&D. College students matter little to Obama. Remember, he eliminated the interest subsidy while in grad school. The question is, will you fall for this snake oil salesman?

Cryn Johannsen said...

My feelings as well, None. So, they are advertising IBR more (should have already been done), and cutting loan forgiveness by 5 years, etc. I am not surprised by this lackluster approach. It will appear that they're tackling the problem, but they are no where close.

Dan said...

Dan-

Cryn I hope you are not supporting this. We both know this only empowers the cartel further.

Forget about the tax implications. How about the fact that there is no contractual right to remain on it? Or that it further weakens our generations' ability to buy homes as this absolutely destroys creditworthiness.

Bankruptcy protections at a MINIMUM. This is an insult and a bribe to OWS. I hope young people aren't stupid enough to be appeased by this.....

None said...

@ Dan: Agreed. Problem with an Executive Order is that it depends on who the executive is.

None said...

@ Dan: Agreed. Problem with an Executive Order is that it depends on who the executive is.

Anonymous said...

Yup, agreed with all of the above posters. I had posted that I anticipated this to be a bunch of "nothing," and it is. I'm disappointed, but not surprised. This provides more of the same, "oh look at what we're doing to help," with the reality being that it's not meaningful or remotely helpful whatsoever. Thanks for nothing.