When my husband and I got married, we married each other and we married each other's debt. I think we had something like $28k in student loans from my husband when we got together, which we started paying off immediately. Those were the good old days before mortgage and a kid, and we were fortunate to have jobs that paid damn close to what we make combined now, eek, ten years later. If we had to pay those loans off now on top of childcare and all the stuff that comes with rising utilities and food costs and house repairs, we would be in serious trouble. Even back then when everything was (relatively speaking) flush, I lived in fear of being in default of those loans, because what would that do to our credit rating and our ability to buy a house or a car or get a job in the future? Messing with your government loans is serious business: the government can seize your tax returns, garnish your wages and more.
Credit Image: B Rosen on Flickr
Today Obama announced a plan to address student loan repayment while at an event in Denver.
Here's the gist of it from CNN:
The way the Income-Based Repayment Plan works now is that graduates who enroll get charged 15% of their monthly discretionary income to pay off loans, with debt forgiven after 25 years.
Congress passed a law set to go into effect in 2014 that would drop the monthly payment for loans originated that year to 10% of discretionary income and would forgive all debt after 20 years.
And from what I understand after watching the newscast on CNN, Obama wants to speed that up by putting what Congress approved into place next year in 2012.
Blogger Reaction to Obama's Student Loan Announcement
moon cat at LeftinaAlabama is all for it:
The economic benefits of a good education are immense -- to society, not just the student -- but no one should be forced to sign away their paychecks for life in order to secure a college degree.
Professionalstudent wrote on BlogHer.com, calling student loans "The Silent Killer":
In order to finish up my MBA I had to take out yet another loan for 3,000 dollars. Yuck! Nonetheless, I was able to finish school in November 2010 with my Master’s in Business Administration concentrated on Program Management. Ecstatic, I quickly began looking for work. And still, no such luck. In the next few months I will have to start paying back that tedious 70k loan along with my new 3k loan.
But Rachel at Thoughts From a Conservative Mom is very much against Obama's position:
Earth to Obama: Congress is not “dysfunctional”. It’s doing exactly what it was DESIGNED by our Founding Fathers to do: stand as a check against the harmful agenda of an out-of-control Executive Branch.
Obama and Romney are taking student loan debates to the people. This morning, the Obama campaign released this video.
Here is Romney's video.
Is speeding up this legislation a good idea or a bad idea? Are you still paying off student loans?
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