patrick.net

And people are stupid.

Again, attending 2 years jc and 2 years California state school will leave one with appx $20k in debt, all inclusive, less than the cost of the average new car.

If one wants to major in art history at a UC or private school....it’s their funeral as far as I’m concerned.

Bloomberg getting ready to tout student debt forgiveness as a free shit campaign promise?

GOP Senator Lamar Alexander: Let's Take Student Loan Payments From Your Paycheck

Will your student loan payments be taken out of your paycheck?

If one U.S. Senator has his way, the answer is yes.

Here's what you need to know.

Student Loan Repayment

If you're one of the 44 million student loan borrowers, then you're familiar with making monthly payments. They are either automatically deducted from your bank account if you sign up for autopay, or you may manually submit a monthly student loan payment.

A new proposal from U.S. Senator Lamar Alexander (R-TN), the chairman of the Senate Health, Education, Labor and Pensions Committee, may change that.

Under a new proposal, Alexander advocated for automatic payroll deductions for student loan repayment. This means that like taxes and Social Security, your federal student loan payments automatically could be deducted from your paycheck. Alexander proposed the idea during a speech last week that discussed reauthorization of the Higher Education Act of 1965, which is the chief federal law that governs higher education.

Student Loan Payments: Payroll Deduction Rationale

Advantages: Alexander's proposal could bring several advantages, which include helping borrowers from falling behind on their student loan payments. By 2023, 40% of student loan borrowers may default on their student loans. With automatic deductions from a paycheck, borrowers could lower their risk of student loan default. Plus, since student loan borrowers would make payments on-time each month, they wouldn't face adverse impacts to their credit score. Finally, this proposal could provide a more systematic way to pay off student loans.

Disadvantages: The disadvantage is that an automatic student loan payment system feels like wage garnishment, and may provide financial pressure particularly to lower income student loan borrowers.

Student Loan Repayment: Simplified Payment Plans

Like President Trump proposed during the 2016 election, Alexander proposed a simplification of federal student loan repayment plans. Alexander advocated consolidating the nine current student loan repayment plans to two. The first plan would be the Standard 10-year Repayment Plan and the second would be the Revised Pay As You Earn (REPAYE) plan.

Under REPAYE, student loan payments are capped at 10% of discretionary income and student loan borrowers can receive student loan forgiveness after 20 years (for undergraduate student loan debt) or 25 years (for graduate school student loan debt).

Several Questions Remain

While this is only a proposal and there are so signs that this will become law imminently, here are a few more questions to be considered by lawmakers:

1.Would student loan borrowers still be eligible for student loan forgiveness under REPAYE?

2.What about public service loan forgiveness?

3.What if a borrower runs into financial trouble or is unable to make regular student loan payments?

4.What happens for those borrowers who lose their job?

5.What about freelancers who have more variable employment and income?

This proposal only applies to federal student loans, not private student loans. Therefore, you wouldn't be subject to automatic repayment for private student loans and still would have the flexibility to refinance student loans.

https://www.forbes.com/sites/zackfriedman/2019/02/13/student-loan-repayment-paycheck/#28d675fd3499

The people so willing to take these loans drove up the costs of college for those who saved. When a kid is born, you have 18 years to build a college fund. During the 18 years I saved up for my daughter's college, college cost substantially increase. This increase was fueled by the easy credit student loans. Without the easy credit and the selfish non-savers who eagerly took on the debt, colleges would have found ways to keep costs down. I say no discharge or forgiveness for student loans, you assholes caused the problem, you can pay the piper. If student loans are a problem then do away with student loans completely. Students then would take college more seriously, and not see it as a four year (or more) extension of adolescence.

Kakistocracy says

student loan payments are capped at 10% of discretionary income and student loan borrowers can receive student loan forgiveness after 20 years

Pathetic! In other words... you pay very little of your income toward the loan for 20 years and then you're done. I'm guessing "discretionary income" means income after some costs for housing, taxes, and food. Maybe a $60k income has $40k of "discretion" so you're paying only $4k/year. Checking a loan calculator, a $100k loan at 7% requires $9303.60 per year for 20 years. Heck, the interest alone on $100k would be $7k.

Let's try a little harder. You know... sacrifice a little. This is what I did: rent a house or large apartment with 3 or 4 of your college friends, buy a $5k used car, take turns cooking your own means. You should be able to live fine on $10k/year rent ($3333/month house rental with 4 people), $10k/year taxes, $5k/year transportation, and $5k/year food, $6k/year other. That leaves $24k/year to go to the loan. Using that handy loan calculator, you're done in 5 years.

If you are a US citizen and spent at least $100k for college, you should be able to get a job in silicon valley doing something that pays $60k/year. If you are female you would probably win the "female engineer of the year" award every year ... even if you don't know how to program at all! The costs of living I outlined above are just about doable even in silicon valley; you might need to have 5 people share the rent instead of 4.

On the bright side, student loans guarantee a steady supply of well educated, nubile porn stars.

Just stop Federal Loan Guarantees other than the GI Bill.

No Stafford, No Perkins.

BOOM! Watch Tuition Costs collapse. Do it now so when the 50 something Admins get axed, there is no replacement.

SunnyvaleCA says

Pathetic!

I know, I know - what else do you expect from a GOP lawmaker....and their supporters

I paid off $48k in a little under two years. Worked two jobs and lived in an apartment with a roomate paying $500 a month rent.

theoakman says

I paid off $48k in a little under two years. Worked two jobs and lived in an apartment with a roomate paying $500 a month rent.

One could follow your example, or instead profess that you should be taxed on that spare income to help those whose "life's lottery" did not award them with such stamina, drive, and intellect.

CovfefeButDeadly says

And people are stupid.

Again, attending 2 years jc and 2 years California state school will leave one with appx $20k in debt, all inclusive, less than the cost of the average new car.

If one wants to major in art history at a UC or private school....it’s their funeral as far as I’m concerned.

What wife and I did, funny that this is never said by the media, its such a simple thing.