The bus tour comes on the heels of recent news regarding student debt, an epidemic that is cutting across all age brackets and affecting more than 38 million Americans. On August 9, the president signed the Bipartisan Student Loan Certainty Act, which ties interest rates on Stafford and PLUS loans to the fluctuations of the 10-year Treasury bond. Its being touted as a better alternative to the fixed 6.8% interest rate that doubled in July from 3.4%. But while the passage of this new law, which Republicans and Democrats claim will help students, is temporarily lowering interest rates, in five years, its estimated that interest rates will actually end up being higher than before the bill was signed — and according to the Congressional Budget Office, will make the government an extra $715 million. The CBO reports that the government is already making an estimated $184 billion from student loans — and this bill jacks up the number to a staggering $184,715,000,000. Matthew Holmes, a 24-year-old graduate of Johnson and Wales University, whose student debt is almost $20,000 in principal, says adding in the estimated accrued interest over a 10-year-period hikes his debt to almost $35,000 — $15,000 more than his current balance.
Solving the Student Loan Crisis – Piglt Campaigns are Live
Raul Ruiz (D – Calif) Owed between $115,002 and $300,000. Rep. Tom Rooney (R – Fla.) Owed between $100,001 and $250,000 Rep. Kevin Yoder (R – Kan.) Owed between $80,003 and $200,000 And Now A few more members of Congress with student debt: Rep. Bruce Braley (D – Iowa) Owed between $10,000 and $15,000 Sen. Elizabeth Warren (D – Mass.) Owed between $15,000 and $50,000 to Harvard University — her alma mater and former employer — in the form of an interest-free loan for one of her children’s education expenses, according to one of her staff members.
Bankruptcy Should Be Obama student loan forgiveness program An Option For Some Student Loans: Report
Los Angeles, CA (PRWEB) August 22, 2013 Piglt ( http://www.PIGLT.com ), Educations Entrepreneurial Piggy Bank, went live this week. Piglt (pronounced piglet) is the only innovative incentive-based crowdfunding platform that allows individuals to fund their tuition or student loan debt, thus solving the nation’s student loan debt epidemic and helping users find jobs through a dual focus on entrepreneurship and community involvement. Piglt just launched its inaugural batch of Campaigns on Aug 20th. Student loan debt in the US has risen above $1 trillion and the cost of higher education is skyrocketing. Thats preventing individuals from progressing socially and economically.
Student Loans: The New Calculation
The change enacts market-based interest rates for federal student loans, and lowers rates for borrowers immediately. The legislation will link interest rates on Stafford loans along with graduate and PLUS loans (Parent Loan for Undergraduate Students), to that of the 10-year Treasury note. Student rates are determined annually on June 1 and locked in for the life of the loan. It means that students who borrow this fall will pay 3.8 percent on subsidized loans, 5.4 percent on unsubsidized Stafford loans, and 6.4 percent on PLUS loans. The new law reverses the interest rate jump on subsidized loans, which jumped from 3.4 percent to 6.8 percent on July 1. [More from Manilla.com: Are Today’s College Students Getting an Education in Financial Responsibility?
Time to Bring Bankruptcy Back for Student Loan Debt
The way to approach this issue, however, is to establish clear and public standards for what we at the Center for American Progress refer to as Qualified Student Loans, or loans that cannot be easily discharged in bankruptcy, which has been done for other types of financial products as a way to identify safer financial products. Qualified Student Loans would include loans, both federal and private, that have reasonable repayment conditions such as low interest rates and access to favorable forbearance, deferment, and income-based repayment options. These loans would also be qualified based on the successful track records of the institutions and programs receiving the proceeds as a way to ensure that these are programs thatby virtue of their graduate employment ratesgive graduates a reasonable chance to repay. Loans not meeting both standardsborrower-friendly terms and some evidence that graduates, based on their employability, are likely going to be able to repay these loanswould be eligible for discharge in bankruptcy just as credit cards are. It’s a fairly moderate step.