... and Obummer obviously believes that our bankrupt nation is wallowing in cash. Here's his latest spending binge. Another giveaway. Another round of punishment for those who behaved responsibly and kept their debt at manageable levels. More rewards for those who screwed up.
Obama in Colorado pushing student loan relief
By the CNN Wire Staff
updated 11:05 AM EST, Wed October 26, 2011
(CNN) -- President Barack Obama takes his economic relief plan to another state Wednesday, highlighting new measures designed to help college graduates manage student loan debt.
One of the president's proposals would push up the start date for more favorable terms on a special loan repayment program based on income, according to White House domestic policy adviser Melody Barnes. Another measure would encourage graduates with two or more kinds of federal loans to consolidate them and get a small break on interest rates.
Obama is expected to discuss the two measures -- part of his announced strategy to bypass a polarized, seemingly ineffectual Congress -- during an appearance in Denver. The stop comes at the end of a three-day presidential trip to Nevada, California, and Colorado.
"We're just going to do this by ourselves. We can't wait for Congress," Education Secretary Arne Duncan told CNN Wednesday morning. This "is about putting more disposable income in people's pockets and helping them pay the rent or buy groceries or pay the electric bill."
Ultimately, Duncan said, "by reducing that debt each month (and) lowering those payments, we'll reduce default rates for the country."
College education costs have continued to spike in recent years. The price of attending the average public university rose 5.4% for in-state students to $21,447 this fall, according to a report released Wednesday by the College Board. The cost for one year at a typical private college rose 4.3% to $42,224.
The average student loan debt for the graduating class of 2009 at four-year non-profit colleges was $24,000, according to the Institute for College Access & Success.
While college costs are rising, employment prospects for new college graduates are dimming. In 2010, the unemployment rate for college graduates age 24 and younger rose to 9.4%, the highest since the Labor Department began keeping records in 1985.
One of the Obama proposals would advance the start date for a special loan repayment program based on income that aims to help struggling graduates.
The way the Income-Based Repayment Plan works now is that graduates who enroll get charged 15% of their monthly discretionary income to pay off loans, with debt forgiven after 25 years.
Congress passed a law set to go into effect in 2014 that would drop the monthly payment for loans originated that year to 10% of discretionary income and would forgive all debt after 20 years.
The administration would improve on the law by fast-forwarding the new terms to take effect in 2012 on loans originated that year, Barnes noted Tuesday.
So far, about 450,000 students are enrolled in the income-based repayment plan, but hundreds of thousands more would be eligible for the repayment plan based on 15% of income earned with the debt forgiven in 25 years.
The other proposal would encourage graduates with two or more kinds of federal loans to consolidate their loans, giving them a small interest rate break of 0.5%, according to Barnes.
Obama's student loan relief event in Colorado follows an appearance in Nevada on Monday in which the president unveiled new measures meant to help struggling homeowners refinance their mortgages. Most economists cite the depressed housing market as one of the primary reasons for country's continued economic weakness.
Political analysts also cite electoral reasons for the president's current trip, which has included a number of fundraisers for his upcoming re-election campaign. Obama carried Colorado and Nevada in 2008, but both states are expected to be hotly contested in 2012.
http://www.cnn.com/2011/10/26/politics/obama-student-loans/
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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