Obama to sign executive order easing student loan woes
Source: Reuters/RawStory
WASHINGTON (Reuters) President Barack Obama will issue an executive action on Monday aimed at making it easier for young people to avoid trouble repaying student loans, a White House official said on Sunday.
The president will sign an order directing the secretary of education to ensure that more students who borrowed federal direct loans be allowed to cap their loan payments at 10 percent of their monthly incomes, the official said.
Federal law currently allows most students to do this already. The presidents order will extend this ability to students who borrowed before October 2007 or those who have not borrowed since October 2011, the official said.
The administration says this action will help up to 5 million more borrowers, although it will not be available until December 2015.
Read more: http://www.rawstory.com/rs/2014/06/08/obama-to-sign-executive-order-easing-student-loan-woes/
totodeinhere
(13,037 posts)Ten percent of monthly income translates into a lot of money for some people. Most people on tight budgets can't afford that. And it won't be available until December 2015. That's 18 months from now. A lot of people with heavy student loan burdens can't wait that long.
I would prefer that students be allowed to write off much of their debt no questions asked. If that can be accomplished by executive order then do it now. If it needs a law passed by Congress, then Obama needs to be out there on the bully pulpit telling voters that they need to vote Democratic in November 2014 so that the Democrats can pass the necessary legislation. Of course the pukes would never go for it.
davidpdx
(22,000 posts)I'm into the six figure range. They can come after me for it if they can find me.
Politicalboi
(15,189 posts)Watch the GOP's head explode over this.
Lefta Dissenter
(6,617 posts)greiner3
(5,214 posts)I've had 2 posts hidden, by a jury of my peers, all because I've done the above.
Come on DU members, develop your funny bone!
Oops, should I use the above mentioned icon?
I'll find out in about half hour when my peers vote on THIS post.
Lionel Mandrake
(4,073 posts)someone will take what you write at face value and flame you for it. That is a sad fact of life.
Richard D
(8,693 posts)Doctor_J
(36,392 posts)Just stretched out over more time. It's something I guess. I don't really understand why, when he decides to take these unilateral actions, doesn't he go big? It's not like he has to find some middle ground so that some repukes will get on board. What I'm thinking of here is either a 20% reduction in the principle, or a useful cut in the interest rate.
Cha
(295,929 posts)jtuck004
(15,882 posts)'Cause after paying 10% of their wages from McDonalds (or the other shit jobs that are in their futures) for so many years, they will have no retirement or other money, and trying to live without paying more would be like being killed on death row in Oklahoma. Nothing painless about it.
grasswire
(50,130 posts).....volunteering at the food bank who said that she borrowed $2,000 in student loans in the 1970s. She worked for some time, and paid on them as she could, but the interest went wild. The loan is now ballooned to more than $10,000. She has been without work or some years now, and last year realized that she wasn't getting her full social security check. It's being garnished! And the kicker is that while she gets a check for the remaining $750 a month that they can't take by law, the full amount she would get under SS is reported to SNAP, and that cuts her SNAP benefit every time the COL goes up. Does that make sense?
Ash_F
(5,861 posts)For state schools at least.
closeupready
(29,503 posts)in bankruptcy if it comes to that. K&R