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Pay as You Earn
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 2014-06-10 9:53 AM |
Pro  9391     Omaha, NE |  Subject: Pay as You EarnObama Calls Out ‘Millionaires’ to Pay for Student Loans I remember the day when we had three branches of government, where one would create laws, one would execute the laws, and yet a third would deem them legal or not. Congress is trying to work on legislation for this very issue and Obama just ignores them and puts in place "what he wants" which is of course to just give everyone free money and ignore the problem. Talk about incentive to not get a good paying job. If you rack up $200k in student loan debt, then go get a government job for 10 years, make your minimum payments and the rest will be covered by your grandchildren. I mean, you deserve the money more than they do right. Here's a priceless quote from another article I saw last night: In previous Obama budgets, the White House has predicted that making the plan retroactive would cost the federal government billions of dollars in the early years. Asked about the costs Monday, Education Secretary Arne Duncan said the administration won't know how much it will cost until they go through the rule-making process to put the expansion in place. "We actually don't know the costs yet," Duncan said. "We'll figure that out on the back end." Seriously? I'm so sick and tired of our politicians just spending and spending and spending and spending and spending. uggh
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| 2014-06-10 10:24 AM in reply to: tuwood |
Regular 1023 Madrid | Subject: RE: Pay as You Earn Have you ever studied Austrian economics or read a book called The Money Bubble ? If you haven't, don't. It will make you even madder.... |
| 2014-06-10 10:25 AM in reply to: gr33n |
Pro 9391 Omaha, NE | Subject: RE: Pay as You Earn Originally posted by gr33n Have you ever studied Austrian economics or read a book called The Money Bubble ? If you haven't, don't. It will make you even madder.... lol, no I haven't. |
| 2014-06-10 11:48 AM in reply to: tuwood |
Elite 4564 Boise | Subject: RE: Pay as You Earn As someone who is heavily indebted in student loans, all I ask is that I can refinance them to current market rates so I'm not paying 7%. |
| 2014-06-10 12:27 PM in reply to: JoshR |
Pro 9391 Omaha, NE | Subject: RE: Pay as You Earn One thing I was wondering about with a change like this. Sure, it's great to have a lower monthly payment, but at 7% interest on somebody with 200k in student loans capping them at 10% of their income could get them in a position where their interest is greater than their payment, which could make things ugly really fast. It also all but guarantees that in 10 or 20 years the taxpayers will "bail out" the individuals' student loan which I guess incents more people to pay the minimum and just let the balance run up knowing that it will go away in 10 or 20 years. Notice how there's no mention of how student loans are responsible for driving the costs of education through the roof which is likely the biggest reason so many people have astronomical student loan balances? Oh yeah, we can't talk about that. Lets just just make the student loans even better so more people run up larger balances. /facepalm IMHO it's really just a clever tax ruse that's primarily focused on the poor and middle class. The government con's everyone into going to school no matter if they can afford it or not by giving "free" student loans. The government pays $100k to the institution of your choice for the right to tax you $7k/year for potentially the rest of your life. |
| 2014-06-10 12:46 PM in reply to: 0 |
Pro 15655 | Subject: RE: Pay as You Earn Originally posted by tuwood One thing I was wondering about with a change like this. Sure, it's great to have a lower monthly payment, but at 7% interest on somebody with 200k in student loans capping them at 10% of their income could get them in a position where their interest is greater than their payment, which could make things ugly really fast. It also all but guarantees that in 10 or 20 years the taxpayers will "bail out" the individuals' student loan which I guess incents more people to pay the minimum and just let the balance run up knowing that it will go away in 10 or 20 years. Notice how there's no mention of how student loans are responsible for driving the costs of education through the roof which is likely the biggest reason so many people have astronomical student loan balances? Oh yeah, we can't talk about that. Lets just just make the student loans even better so more people run up larger balances. /facepalm IMHO it's really just a clever tax ruse that's primarily focused on the poor and middle class. The government con's everyone into going to school no matter if they can afford it or not by giving "free" student loans. The government pays $100k to the institution of your choice for the right to tax you $7k/year for potentially the rest of your life. I need to borrow your tinfoil hat to see if I can dial in on what you just wrote. Edited by Left Brain 2014-06-10 12:46 PM |
| 2014-06-10 1:26 PM in reply to: Left Brain |
Pro 9391 Omaha, NE | Subject: RE: Pay as You Earn Originally posted by Left Brain Originally posted by tuwood One thing I was wondering about with a change like this. Sure, it's great to have a lower monthly payment, but at 7% interest on somebody with 200k in student loans capping them at 10% of their income could get them in a position where their interest is greater than their payment, which could make things ugly really fast. It also all but guarantees that in 10 or 20 years the taxpayers will "bail out" the individuals' student loan which I guess incents more people to pay the minimum and just let the balance run up knowing that it will go away in 10 or 20 years. Notice how there's no mention of how student loans are responsible for driving the costs of education through the roof which is likely the biggest reason so many people have astronomical student loan balances? Oh yeah, we can't talk about that. Lets just just make the student loans even better so more people run up larger balances. /facepalm IMHO it's really just a clever tax ruse that's primarily focused on the poor and middle class. The government con's everyone into going to school no matter if they can afford it or not by giving "free" student loans. The government pays $100k to the institution of your choice for the right to tax you $7k/year for potentially the rest of your life. I need to borrow your tinfoil hat to see if I can dial in on what you just wrote. lol, not really a conspiracy thing, more of a different way of looking at it. The Fed's made almost $20B in "profit" from student loans last year. Isn't government profit by definition a tax? |
| 2014-06-10 1:26 PM in reply to: JoshR |
Not a Coach 11473 Media, PA | Subject: RE: Pay as You Earn Originally posted by JoshR As someone who is heavily indebted in student loans, all I ask is that I can refinance them to current market rates so I'm not paying 7%. I could be wrong, but I believe you can. Only a few lenders may allow you to refi federal loans (many will allow you to refi private loans)--your best bet is likely the gov't Direct Consolidation Loan. Of course, then you lose things like Pay as You Earn.
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| 2014-06-10 2:45 PM in reply to: JohnnyKay |
Elite 4564 Boise | Subject: RE: Pay as You Earn Originally posted by JohnnyKay Originally posted by JoshR As someone who is heavily indebted in student loans, all I ask is that I can refinance them to current market rates so I'm not paying 7%. I could be wrong, but I believe you can. Only a few lenders may allow you to refi federal loans (many will allow you to refi private loans)--your best bet is likely the gov't Direct Consolidation Loan. Of course, then you lose things like Pay as You Earn.
I don't believe that is correct. I did do a Direct Consolidation loan (all of mine are federal loans) and all it did was combine my payments and weighted my interest exactly the same as it had been. |
| 2014-06-10 4:07 PM in reply to: JoshR |
Not a Coach 11473 Media, PA | Subject: RE: Pay as You Earn Originally posted by JoshR Originally posted by JohnnyKay I don't believe that is correct. I did do a Direct Consolidation loan (all of mine are federal loans) and all it did was combine my payments and weighted my interest exactly the same as it had been. Originally posted by JoshR As someone who is heavily indebted in student loans, all I ask is that I can refinance them to current market rates so I'm not paying 7%. I could be wrong, but I believe you can. Only a few lenders may allow you to refi federal loans (many will allow you to refi private loans)--your best bet is likely the gov't Direct Consolidation Loan. Of course, then you lose things like Pay as You Earn.
*shrug* Guess the program changed. Anyway, 7% is not too bad of a rate. There apparently are a few refi options for federal loans into private (see here), though I doubt your savings would be that great. You already received a subsidy when you borrowed the money. Getting another subsidy to lower the rate might be nice for you, but not sure that it is in any way 'fair'. |
| 2014-06-10 5:58 PM in reply to: JohnnyKay |
Pro 9391 Omaha, NE | Subject: RE: Pay as You Earn Originally posted by JohnnyKay Originally posted by JoshR Originally posted by JohnnyKay I don't believe that is correct. I did do a Direct Consolidation loan (all of mine are federal loans) and all it did was combine my payments and weighted my interest exactly the same as it had been. Originally posted by JoshR As someone who is heavily indebted in student loans, all I ask is that I can refinance them to current market rates so I'm not paying 7%. I could be wrong, but I believe you can. Only a few lenders may allow you to refi federal loans (many will allow you to refi private loans)--your best bet is likely the gov't Direct Consolidation Loan. Of course, then you lose things like Pay as You Earn.
*shrug* Guess the program changed. Anyway, 7% is not too bad of a rate. There apparently are a few refi options for federal loans into private (see here), though I doubt your savings would be that great. You already received a subsidy when you borrowed the money. Getting another subsidy to lower the rate might be nice for you, but not sure that it is in any way 'fair'. Depending on his family, he may or may not have gotten a subsidy when the money was borrowed. My son's student loans are all unsubsidized and he's racking up 7% from the moment the money was distributed. |
| 2014-06-10 7:29 PM in reply to: JohnnyKay |
Master 2380 Beijing | Subject: RE: Pay as You Earn Originally posted by JohnnyKay Originally posted by JoshR Originally posted by JohnnyKay I don't believe that is correct. I did do a Direct Consolidation loan (all of mine are federal loans) and all it did was combine my payments and weighted my interest exactly the same as it had been. Originally posted by JoshR As someone who is heavily indebted in student loans, all I ask is that I can refinance them to current market rates so I'm not paying 7%. I could be wrong, but I believe you can. Only a few lenders may allow you to refi federal loans (many will allow you to refi private loans)--your best bet is likely the gov't Direct Consolidation Loan. Of course, then you lose things like Pay as You Earn.
*shrug* Guess the program changed. Anyway, 7% is not too bad of a rate. There apparently are a few refi options for federal loans into private (see here), though I doubt your savings would be that great. You already received a subsidy when you borrowed the money. Getting another subsidy to lower the rate might be nice for you, but not sure that it is in any way 'fair'. 7% does seem pretty good for a loan that is "unsecured" (no real collateral) On the other hand, it's not dischargeable in bankruptcy, so that does feel a little like "collateral" (of the worst kind)
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| 2014-06-12 7:47 AM in reply to: tuwood |
| Subject: RE: Pay as You Earn So, if you tithe 10% of your pay to the great God Government for 20 years, it will absolve you of your sin of indebtedness. Got it. |
| 2014-06-12 9:34 AM in reply to: tuwood |
| New user 900 , | Subject: RE: Pay as You Earn Originally posted by tuwood Originally posted by gr33n Have you ever studied Austrian economics or read a book called The Money Bubble ? If you haven't, don't. It will make you even madder.... lol, no I haven't. When Money Dies is also an interesting read. |
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