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Obama to Sign Order to Ease Student Loan Payments

By Phil Mattingly - Jun 8, 2014 - Bloomberg

U.S. President Barack Obama will move tomorrow to ease monthly payments for people with student loans, according to a White House official.

Obama, in executive action coordinated with a legislative push by Senate Democrats, will direct the Department of Education to expand the number of people who can take advantage of a law capping payments on federal direct loans to no more than 10 percent of their monthly incomes.

“I’ve heard from too many young people who are frustrated that they’ve done everything they were supposed to do -- and now they’re paying the price,” Obama said yesterday in his weekly address.

The action marks the latest effort by Obama’s administration to advance policies by executive action after being stymied on Capitol Hill. With the help of several cabinet heads, the president has spent much of this year initiating modest changes in programs that may provide a boost to Democrats in advance of the midterm elections.

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Awesome!

I am a ceo and pay myself a dollar in income. I have deferred my loans for decades and only recently had to start paying them back. All my income is in capital gains but I live in Puerto Rico so taxes are waived for 20 years on those gains. I live off from housing flips from homes I snatched up after the crash and now can sell after holding them for two years on nearly zero interest - interest only loans. Boy oh boy! Now my student loan repayment is capped at 9 cents a month! I'm going to go out and buy the new margaritaville with the salsa dispenser!
Ready the chicken and prepare to consult the charts Yellen.

for those who don't know...

... look up south park margaritaville episode. sorry if you don't see the satirical humor.

Nah that definitely made me

Nah that definitely made me chuckle.

Sigh ....

Just sigh ....

pretty disgusting

Banksters getting free money from the Fed and charging kids trying to get an education.. Still waiting for my bailout lol!!

Government is supposed to protect our freedom, our property, our privacy, not invade it. Ron Paul 2007

Why not allow

bankruptcy protection? I mean if you really care and they really cant pay? It would immediately stop predatory lending practices and it would force colleges to lower tuition since young people would instantly not be able to afford college without the predatory loans.

Exactly.

Exactly.

Ventura 2012

SteveMT's picture

Only the TBTF get a bail-out.The point of the NWO is to enslave.

They will lessen the terms of the payback, but they will never write it off. The politicians that accept PAC money are put on similar hooks and have the same strings attached as securing a loan for a house or an education. Anyone with a loan or any politician with PAC connections are both bought and paid for. That is how the system works.

I wonder if this means that

I wonder if this means that he just lowering the minimum payment required. If so, he is actually increasing individual student debt, as they will be paying more interest for much longer than they would have otherwise been.

I wonder how many college graduates can figure this out?

scawarren's picture

That's exactly what it means

That's exactly what it means unfortunately.

It is easier to fool people than to convince them that they have been fooled. – Mark Twain

TwelveOhOne's picture

Why just student loans?

Why not all loans?

One reason might be: students can be convinced to vote democrat, but homeowners generally cannot [1]; and, students generally have a lot of free time so they can show up at the polls.

[1] -- based on the old quote, "If you're not liberal when young, you don't have a heart; if you're not conservative when old, you don't have a brain." And, repeating this old quote right now amazes me, after having watched a 1:45 video on sacred math this weekend, because it talked about "male energy" and "female energy"; male being straight lines, female being curves; male being "of the brain" and female being "of the heart", and realizing that having the heart and brain working together provides for the best outcome. So, this old quote seems to have been engineered by them -- both to further the left/right, liberal/conservative dichotomy; and also to drive a wedge between our hearts and our brains!

Our hearts have something similar to neurons; we actually do "think with our hearts". This blows me away. I ordered a compass so I can draw the sacred math myself -- look up "The flower of life", it's ingenious how it fits into the creation myth, as well as science.

I love you. I'm sorry. Please forgive me. Thank you.
http://fija.org - Fully Informed Jury Association
http://jsjinc.net - Jin Shin Jyutsu (energy healing)

And then the hapless

republicons will come out and strongly oppose it....and then wonder why they got their asses kicked by Hitlery in 2016.

This is the one thing Obama

This is the one thing Obama has been good on. No reason for students to have to pay the fiat money back to the banks.

Ventura 2012

scawarren's picture

It means they'll end up

It means they'll end up paying more to the banks. This doesn't allow them to file bankruptcy on their student loans it just lowers the minimum payment.

It is easier to fool people than to convince them that they have been fooled. – Mark Twain

Maybe but that's the

Maybe but that's the Student's cho ice
The banks want the money now, not later.

Ventura 2012

And you realize we're going

And you realize we're going to pay for it instead, right?

How? It's just liquidated

How? It's just liquidated debt. They're really not loaning tax money.

Ventura 2012

No. By the government

No. By the government liquidating a student's loan, the taxpayer does get the bill because they ARE loaning tax money. When the government pays School A $10,000 for tuition, where do they get that money? Through taxation.

Now of course, the student is supposed to pay that back with low interest, so hypothetically it ends up being a wash.

But if the government makes some student's loan "disappear", all that means is the responsibility of that loan is transferred from the individual to the collective. The money still has to be paid off, because the government already paid the school. So the government can only get its return back in 3 ways: direct taxation, print more money, or sell debt. All 3 ways are obviously taxation on the U.S. taxpayer.

If government stopped

If government stopped providing loans and also allowed bankruptcy protection to include student loans... pretty much let the free market work, kids could get a whole year of college tuition for about $3k.

Refer to repost of Ron Paul's 2011 talk about student loans.

Over 1 trillion dollars in debt created by the Fed. End this crap and let students and educators reach an agreement. Same with Doctor/Patient relationship and everything else. Government get our of our way! The market will decide.

beephree

SteveMT's picture

Action by Obama = Save the students, save the election.

The dictator will sign another magical E.O. and save the students. Their families will appreciate it too, especially the ones who also had to co-sign on the bigger private student loans. Obama is trying to save the dems in November. Like he said, he's got a pen.