In what I count as the third major expansion/improvement to the IBR/PAYE/Loan Forgiveness programs since the 2007 College Cost Reduction and Access Act, Obama is announcing that borrowers' monthly loan repayments will be limited to 10% of monthly income.
Right. Very positive.
Shovel more money into students' hands who have no real prospect of repaying.
Then, forgive the loans.
The schools rake in the dough; the students aren't as hurt.
Problem solved!!!
Posted by: anon | June 09, 2014 at 03:10 PM
I would be amazed if the American people find it acceptable behavior to originate loans and then expect to only pay back 10% of discretionary income for a period of time, until the balance of the loan is forgiven. How is this still considered a loan?
For the last couple of decades, college has been essentially a four year binge drinking affair where young people develop drug dependence, learn nothing and lose any work ethic they might have had coming in prior to moving back in with their parents. It would be much better if prospective students chose to (A) not attend, or (B) attend with a much greater sense of purpose.
Obama is doing his best to make sure that 18 year olds rush head-long into 4 year degree programs regardless of any logical consideration. This is terrible policy.
Posted by: JM | June 09, 2014 at 04:36 PM
JM
More to the point here, this move will allow the greedy hogs at the trough to gorge themselves further on federal money, using unwary juveniles as pawns in the game. The support for this, not surprisingly, comes to our attention first from an admissions director.
Law schools will use this development as part of the pitch to bring in even more of the unsuspecting.
Just at a time when law schools should be facing some hard truths, and reforming, many will double down on the unseemly practices that have contributed to the sharp decline in applications, and even sharper decline in honor.
Posted by: anon | June 09, 2014 at 06:04 PM