Quote:NEW YORK (MainStreet) — First Pell Grants got whacked. Now it's Stafford loans.

The Pell spending freeze that appeared in the Republican's budget blueprint on Tuesday would cap the max Pell Grant for ten years and roll back recent expansions of the program. Some student advocates thought the worst was over. But tucked into it was a plan to wipe out Stafford loans' in-school subsidy, reverse a roll back an expansion of income-based repayment of these loans and call a halt to the forgiveness of loans made by the Department of Education (ED).

These changes would save taxpayers more than $60 billion during a 10-year period based on the budget estimates. But they would also make student loans more expensive for borrowers--who are themselves future taxpayers--and leave them with less disposable income to put back into the economy.

Interest on subsidized Stafford loans doesn't currently accrue as long as the borrower stays in school. These subsidized loans are available to undergrads from low- and moderate-income families. About half of the Stafford loan volume to undergraduates last year was in the form of subsidized loans.

"The House plan makes college even less affordable by not only forcing needy students to borrow more and raising their cost of borrowing, but also by making it harder for student to repay their loans," said Pauline Abernathy, vice president of The Institute for College Access and Success (TICAS), based in Oakland. "For new borrowers after July 1, 2016, it eliminates Pay As You Earn and a related plan, both of which cap monthly payments at 10% of discretionary income and discharge any debt remaining after 20 years of payments."

(03-24-2015 06:28 PM)Max Power Wrote:  Along with almost everyone else of course. Pell grants whacked, Stafford loans subsidies lost, Obama's generous pay-as-you-earn program whacked. Anybody with student loans who votes GOP deserves what they get. I feel sorry for the rest of them though, along with people who might be dissuaded from ever going to college if the GOP gets their way.

All for $60 billion. And remember, 2 years ago they opposed raising taxes on billionaires because they thought $60 billion wouldn't be worth it. That was literally their argument.


http://www.mainstreet.com/article/stafford-loans-join-pell-grants-on-the-congressional-chopping-block

Quote:NEW YORK (MainStreet) — First Pell Grants got whacked. Now it's Stafford loans.

The Pell spending freeze that appeared in the Republican's budget blueprint on Tuesday would cap the max Pell Grant for ten years and roll back recent expansions of the program. Some student advocates thought the worst was over. But tucked into it was a plan to wipe out Stafford loans' in-school subsidy, reverse a roll back an expansion of income-based repayment of these loans and call a halt to the forgiveness of loans made by the Department of Education (ED).

These changes would save taxpayers more than $60 billion during a 10-year period based on the budget estimates. But they would also make student loans more expensive for borrowers--who are themselves future taxpayers--and leave them with less disposable income to put back into the economy.

Interest on subsidized Stafford loans doesn't currently accrue as long as the borrower stays in school. These subsidized loans are available to undergrads from low- and moderate-income families. About half of the Stafford loan volume to undergraduates last year was in the form of subsidized loans.

"The House plan makes college even less affordable by not only forcing needy students to borrow more and raising their cost of borrowing, but also by making it harder for student to repay their loans," said Pauline Abernathy, vice president of The Institute for College Access and Success (TICAS), based in Oakland. "For new borrowers after July 1, 2016, it eliminates Pay As You Earn and a related plan, both of which cap monthly payments at 10% of discretionary income and discharge any debt remaining after 20 years of payments."

(03-24-2015 08:59 PM)Max Power Wrote:  Clearly we need a less educated, more debt burdened workforce to carry us into the 21st century.

Quote:http://www.thenation.com/article/164348/audacity-occupy-wall-street

A few years ago, Joe Therrien, a graduate of the NYC Teaching Fellows program, was working as a full-time drama teacher at a public elementary school in New York City. Frustrated by huge class sizes, sparse resources and a disorganized bureaucracy, he set off to the University of Connecticut to get an MFA in his passion—puppetry. Three years and $35,000 in student loans later, he emerged with degree in hand, and because puppeteers aren’t exactly in high demand, he went looking for work at his old school.

(03-24-2015 08:58 PM)Max Power Wrote:  If you don't want to borrow it then tax the billionaires.

The GOP proposal not only screws over young people but hurts the economy. These are people who will be the primary drivers of our economy once they graduate, and they'll be paying down loans instead of pumping their salaries back into the US economy.

(03-24-2015 09:38 PM)EverRespect Wrote:  Way too many people go to college. The result: millions living in their parents' basement, $100k in debt, and waiting tables at Olive Garden... and the lack of a skilled workforce and a general populace that simply can't do schit. Can't make money, can't change a tire, can't fix an appliance, and need to call a plumber to unclog a J trap.

(03-24-2015 08:59 PM)Max Power Wrote:  Clearly we need a less educated, more debt burdened workforce to carry us into the 21st century.

(03-24-2015 08:59 PM)Max Power Wrote:  Clearly we need a less educated, more debt burdened workforce to carry us into the 21st century.

(03-24-2015 09:38 PM)EverRespect Wrote:  Way too many people go to college. The result: millions living in their parents' basement, $100k in debt, and waiting tables at Olive Garden... and the lack of a skilled workforce and a general populace that simply can't do schit. Can't make money, can't change a tire, can't fix an appliance, and need to call a plumber to unclog a J trap.

(03-25-2015 12:13 AM)HeartOfDixie Wrote:  This an area where the Republicans are way out of touch with reality.

The debt the kids carry at this point are huge anchors on our economy. Forbes has already had some articles on the fact that kids are not buying houses or cars like the old days.

Grandstanding on some responsibility argument that doesn't hold water is only going to force the taxpayer to pay twice for the screwup the government itself created.