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View Diary: President Obama's New Budget To Limit Student Loan Forgiveness (46 comments)

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  •  As somebody who actually is enrolled in this one (4+ / 0-)
    Recommended by:
    Coneria, Pluto, Silvan Elf, houyhnhnm

    Let me share some info. The program only includes credit for payments made regularly for ten years starting in 2007. I've been paying since around 1994. Nobody enrolled in the program has yet qualified for any assistance, but let me tell you- it's the first real break that student loan holders have had since Clinton's administration put the income contingent stuff in place.

    To illustrate the point, I had incurred just over $30,000 in loan debt  for 6 years of school.  I have repaid $34,000 over the last 19 years.  I still owe the Dept. of Education $32,000, due to the wonders of compound interest and stagnant pay scales.  It will be another 3 1/2 years before my loan obligations are forgiven, or anybody else's, for that matter.

    I've more than repaid my original debt. Getting the chance to put that loan payment towards retirement savings before I drop dead, or my public pension is removed through legislative action, would be a relief.

    Ohio has already added two more years to my working career to make up for gaps in their pension fund, in addition to increasing withholding three times to about double the rate of Social Security withholding in the private sector.  I will not even qualify for full Social Security benefits if I do manage to make it until public pension retirement, despite the fact that I paid into the fund for over a decade.

    Deadbeats don't pay their debts faithfully over two decades before finally seeing some sun at the end of the tunnel. Those of us who have been holding up our end of public service can really use a break.

    "I'm not a humanitarian. I'm a hell-raiser." Mother Jones

    by histopresto on Fri Mar 07, 2014 at 02:02:28 PM PST

    •  Thanks for your insight. (1+ / 0-)
      Recommended by:
      Pluto

      It is helpful to be able to talk about the effects on individuals rather than debating how things operate in the abstract.

      •  No problem (1+ / 0-)
        Recommended by:
        Coneria

        Up until this program came along, I had been biding my time until I had a full 20 years of income based repayments made. That's when the Clinton era rules would have let me off.  With bouts of unemployment, underemployment, and forebearances for occasional financial emergencies, it would have taken a couple extra years to get free than this program would require.

        And the thing to remember is that nobody promotes these programs. There's no ad campaign like for the health care program and the private student loan companies certainly don't encourage enrollment.  Word of mouth is what got me enrolled, and I've been telling as many people as I can about it before the program goes away. I thought it was too good to last under the current do-nothing-for-working-people congress.

        "I'm not a humanitarian. I'm a hell-raiser." Mother Jones

        by histopresto on Fri Mar 07, 2014 at 02:38:05 PM PST

        [ Parent ]

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