Saturday, 7 June 2014

Student loan | Obama focuses on actions to ease student loan debt in weekly ...

Student loan | Obama focuses on actions to ease <b>student loan</b> debt in weekly <b>...</b>

Obama focuses on actions to ease <b>student loan</b> debt in weekly <b>...</b>

Posted: 07 Jun 2014 07:00 AM PDT

... at a time when college has never been more important, it's also never been more expensive.

President Obama has a hit a theme in his most recent weekly addresses: Here's a problem, here's an executive branch solution I'm implementing, but we still need the help of an obstructionist Congress to provide a more comprehensive solution, and please, Americans, contact your representatives to get them moving on this even as I keep working on it.

This morning's weekly address applied this formula to higher education and student loan debt.

The problem:

The average undergraduate student who borrows for college now graduates owing almost $30,000. And I've heard from too many young people who are frustrated that they've done everything they were supposed to do – and now they're paying the price.

The actions he's taken as president:

I've taken action on my own to offer millions of students the opportunity to cap their monthly student loan payments to 10% of their income.

But there's that damn obstructionist party in Congress:

But Congress needs to do its part. The good news is that Senate Democrats are working on a bill that would help more young people save money. Just like you can refinance your mortgage at a lower interest rate, this bill would let you refinance your student loans. And we'd pay for it by closing loopholes that allow some millionaires to pay a lower tax rate than the middle class.

And the implied action ask, with his own vow to continue to work on the issue:

That's the choice that your representatives in Congress will make in the coming weeks – protect young people from crushing debt, or protect tax breaks for millionaires. And while Congress decides what it's going to do, I will keep doing whatever I can without Congress to help responsible young people pay off their loans – including new action I will take this week.

To read the transcript in full, check below the fold or visit the White House website.

Remarks of President Barack Obama
Weekly Address
The White House
June 7, 2014

Hi, everybody. This is commencement season, a time for graduates and their families to celebrate one of the greatest achievements of a young person's life. But for many graduates, it also means feeling trapped by a whole lot of student loan debt.  And we've got to do more to lift that burden.

See, in a 21st century economy, the surest pathway into the middle class is some form of higher education. The unemployment rate for workers with a bachelor's degree is just 3.3 percent – about half what it is for high school graduates. The typical graduate of a four-year college earns $15,000 more per year than someone with just a high school degree.  

But at a time when college has never been more important, it's also never been more expensive.

That's why, since I took office, I've worked to make college more affordable. We reformed a student loan system that gave away billions of taxpayer dollars to big banks and invested that money where it makes a bigger bang – in helping more young people afford a higher education.

But over the past three decades, the average tuition at a public four-year college has more than tripled. The average undergraduate student who borrows for college now graduates owing almost $30,000. And I've heard from too many young people who are frustrated that they've done everything they were supposed to do – and now they're paying the price.

I've taken action on my own to offer millions of students the opportunity to cap their monthly student loan payments to 10% of their income. But Congress needs to do its part. The good news is that Senate Democrats are working on a bill that would help more young people save money. Just like you can refinance your mortgage at a lower interest rate, this bill would let you refinance your student loans. And we'd pay for it by closing loopholes that allow some millionaires to pay a lower tax rate than the middle class.

That's the choice that your representatives in Congress will make in the coming weeks – protect young people from crushing debt, or protect tax breaks for millionaires. And while Congress decides what it's going to do, I will keep doing whatever I can without Congress to help responsible young people pay off their loans – including new action I will take this week.

This country has always made a commitment to put a good education within the reach of all who are willing to work for it. That's what made us an economic superpower. That's what makes us special. And as long as I hold this office, I'll keep fighting to give more young people the chance to earn their own piece of the American Dream. Thanks, and have a great weekend.

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Obama Has Typical Solution For <b>Student Loans</b> | Right Wing News

Posted: 07 Jun 2014 05:11 AM PDT


Written By : William Teach
June 7, 2014

Another week, another Obama avoidance of the VA scandal. He has yet to truly address it during a Weekly Address, despite the terrible care so many veterans are receiving. This week, he decides he wants to patronize students who took out loans that left them with crushing debt. At least he wasn't chewing gum (video here)

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(White House) Hi, everybody. This is commencement season, a time for graduates and their families to celebrate one of the greatest achievements of a young person's life. But for many graduates, it also means feeling trapped by a whole lot of student loan debt. And we've got to do more to lift that burden.

See, in a 21st century economy, the surest pathway into the middle class is some form of higher education. The unemployment rate for workers with a bachelor's degree is just 3.3 percent – about half what it is for high school graduates. The typical graduate of a four-year college earns $15,000 more per year than someone with just a high school degree.

But at a time when college has never been more important, it's also never been more expensive.

The funny part is that Obama and Democrats have been pushing hard for snowflakes to take on this same student debt. Interestingly, telling everyone that they need a college education also disses a nice chunk of his base who are blue collar union members. Yes, a college education is important, but the degree matters. Many are getting pretty much worthless degrees in some type of "studies" disciple, the equivalent of the old joke about basket weaving. But, at least basket weaving is a skill that can bring money in.

But over the past three decades, the average tuition at a public four-year college has more than tripled. The average undergraduate student who borrows for college now graduates owing almost $30,000. And I've heard from too many young people who are frustrated that they've done everything they were supposed to do – and now they're paying the price.

Good thing Obamacare streamlined student loans, in which the "Congress (Democrats only, let's not forget) removed the private sector from the student loan process, to eliminate federal payments to banks and to move the revenue from the lending process into federal coffers." The profits are meant to go to help pay for Obamacare. So, Obama and the Dems have a vested interest in making sure lots of snowflakes take out student loans.

I've taken action on my own to offer millions of students the opportunity to cap their monthly student loan payments to 10% of their income. But Congress needs to do its part. The good news is that Senate Democrats are working on a bill that would help more young people save money. Just like you can refinance your mortgage at a lower interest rate, this bill would let you refinance your student loans. And we'd pay for it by closing loopholes that allow some millionaires to pay a lower tax rate than the middle class.

And there we go: he's gone to the same old tax the rich well. I'd note that he's officially out of ideas, but that occurred long ago. Of course, if he was truly serious, he'd stop taking all the deductions on his own taxes and pay the full rate.

Crossed at Pirate's Cove. Follow me on Twitter @WilliamTeach.

Vets&#39; advocates push for more <b>student loan</b> protections - Military Times

Posted: 04 Jun 2014 02:43 PM PDT

For many veterans attending college, student debt ultimately will become "one of the largest inhibiting factors" to their long-term career success, a veterans' advocate told Senate lawmakers Wednesday.

Veterans report difficulty in finding accurate information and also encounter "unnecessary roadblocks" created by loan companies, William Hubbard, a spokesman for Student Veterans of America, told the Senate Finance Committee's fiscal responsibility and economic growth panel.

A Consumer Financial Protection Bureau report in April found that the top five complaints about student loans, collected from more than 1,300 individuals carrying debt, were all related to miscommunication.

The confusion and lack of transparency around loans is a major issue, said Nancy Hoover, director of financial aid at Denison University in Ohio, who works with students to help them understand and eventually repay student loans.

"Keep it simple," Hoover said, recommending making loan service providers virtually invisible to borrowers so there is only one point of contact for all information around a student's loans. For federally-backed loans, that would be the Education Department.

If these changes were made, "a lot of this confusion would be eliminated," Hoover said.

In 2012, former Defense Secretary Leon Panetta told reporters that 41 percent of service members were dealing with student loan debt.

Among them is Rachel Engler, 33, a nurse anesthetist in Northern Virginia who has been in the Navy for nine years, including tours in Afghanistan.

"Figuring out how to pay for school was really confusing," Ensler said. "The stress from the finances was, and still is, a lot."

To pay for a graduate degree in nurse anesthesia at Northeastern University in Boston, Ensler borrowed $60,000 in federal loans.

"You're taking a financial setback for years in order to continue your education," she said.

Hubbard, who joined the Marine Corps at 17 and is still in Marine Corps Reserve, said veterans may have student debt outstanding from schooling before service, poor access to information while on active duty, and a limited understanding of the student loan landscape.

His group, the nonprofit Student Veterans of America, has a number of chapters at colleges and universities throughout country that support student vets on a variety of issues.

Misinformation can lead to veterans getting taken advantage of by loan providers. Hubbard noted a recent case in which private loan provider Sallie Mae paid a $60 million dollar settlement for abusive practices related to student loan products.

The infractions, brought to light by a member of the military community, "made me sick," said Hubbard.

"As they should," responded Sen. Elizabeth Warren, D-Mass., a subcommittee member who has sponsored legislation to refinance student loans at lower interest rates.

"Federal contracts should involve accountability and oversight protections that require servicers to perform to a high standard," Warren said.

Sen. Sherrod Brown, D-Ohio, expressed frustration with overly complex loan repayment options that can confuse student veterans. Many of those options, he said, appear "better suited for a contract lawyer than recent graduates. It's unrealistic at best and cynical at worst."

Brown is supporting a Student Loan Borrower Bill of Rights, legislation that would provide clearer communication around student loans and offer more flexible repayment options.

Such protections are essential, said Hubbard, if there is an expectation for veterans to stay out of debt, buy homes, start businesses and ultimately invest in the U.S. economy.

"The investment America has made in the GI Bill and its veterans becomes an even clearer asset to our economy when those veterans are powered with the right tools," said Hubbard. "By reducing the debt burden on service members and veterans, we can set our veterans up for long-term success."
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