Obama Plans Steps to Ease Student Debt

[hodap2001]

http://www.nytimes.com/2014/06/08/us/politics/obama-plans-steps-to-ease-student-debt.html?_r=0

 

More information to come later today!!

[Bohemian]

I am wondering what this really means for those of us with old loans. From what I read, it looks like this might be for newer borrowers. I have had student loans since 1996... but I returned to school and didn't stop being a student till 2009... I think... and I consolidated my loans. So, I'm curious how they are going to iron out theses details. I'm curious if they even thought about the details, or if we will have to pass the bill in order to know what's in it. Anybody know any concrete details?

[ICANHASMUNY?]

http://www.theguardian.com/world/2014/jun/09/obama-order-student-loan-payments

[RedHairedLady]

I'll be watching this as well.

 

I consolidated my (federal) student loans in 2011, but the original loans are from as far back as 1996, to as recent as 2009 - undergrad and some grad school coursework. Yes, it took me a looong time just to get my bachelor's degree

 

I've never qualified for the 10 percent pay as you earn plan, due to my student loans not being new enough.

Edited June 10, 2014 by RedHairedLady

[ICANHASMUNY?]

I am wondering what this really means for those of us with old loans. From what I read, it looks like this might be for newer borrowers. I have had student loans since 1996... but I returned to school and didn't stop being a student till 2009... I think... and I consolidated my loans. So, I'm curious how they are going to iron out theses details. I'm curious if they even thought about the details, or if we will have to pass the bill in order to know what's in it. Anybody know any concrete details?

 

http://www.whitehouse.gov/the-press-office/2014/06/09/presidential-memorandum-federal-student-loan-repayments

 

 

Therefore, by the authority vested in me as President by the Constitution and the laws of the United States of America, I hereby direct the following:

Section 1. Expanding the President's Pay As You Earn Plan to More Federal Direct Loan Borrowers. Within 1 year after the date of this memorandum, the Secretary of Education shall propose regulations that will allow additional students who borrowed Federal Direct Loans to cap their Federal student loan payments at 10 percent of their income. The Secretary shall seek to target this option to those borrowers who would otherwise struggle to repay their loans. The Secretary shall issue final regulations in a timely fashion after considering all public comments, as appropriate, with the goal of making the repayment option available to borrowers by December 31, 2015.

Sec. 2. Improving Communication Strategies to Help Vulnerable Borrowers. By December 31, 2014, the Secretary of Education shall develop, evaluate, and implement new targeted strategies to reach borrowers who may be struggling to repay their Federal student loans to ensure that they have the information they need to select the best repayment option and avoid future default. In addition to focusing on borrowers who have fallen behind on their loan payments, the Secretary's effort shall focus on borrowers who have left college without completing their education, borrowers who have missed their first loan payment, and borrowers (especially those with low balances) who have defaulted on their loans to help them rehabilitate their loans with income-based monthly payments. The Secretary of Education shall incorporate data analytics into the communications efforts and evaluate these new strategies to identify areas for improvement and build on successful practices.

Sec. 3. Encouraging Support and Awareness of Repayment Options for Borrowers During Tax Filing Season. By September 30, 2014, the Secretary of the Treasury and the Secretary of Education shall invite private-sector entities to enter into partnerships to better educate borrowers about income-based repayment plans during the tax filing season in 2015. Building off of prior work, the Secretaries shall further develop effective ways to inform borrowers about their repayment options during the tax filing season in 2015, as well as through personalized financial management tools.

Sec. 4. Promoting Stronger Collaboration to Ensure That Students and Their Families Have the Information They Need to Make Informed Borrowing Decisions. By September 30, 2014, the Secretary of Education, in consultation with the Secretary of the Treasury, shall develop a pilot project to test the effectiveness of loan counseling resources, including the Department of Education's Financial Awareness Counseling Tool. The Secretary of Education shall convene higher education experts and student-debt researchers to identify ways to evaluate and strengthen loan counseling for Federal student loan borrowers. Additionally, the Secretaries shall collaborate with organizations representing students, teachers, nurses, social workers, entrepreneurs, and business owners, among others, to help borrowers represented by these organizations learn more about the repayment options that are available to them in financing their investment in higher education and managing their debt, and to provide more comparative, customized resources to those borrowers when possible.

Sec. 5. General Provisions. (a) Nothing in this memorandum shall be construed to impair or otherwise affect:

(i) the authority granted by law to an agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

( This memorandum shall be implemented consistent

[hodap2001]

Here is the White House Fact Sheet on Making Student Loans More Affordable:

 

http://www.whitehouse.gov/the-press-office/2014/06/09/factsheet-making-student-loans-more-affordable

[Bohemian]

Well, it would appear nothing much has changed for me. But that's ok. I don't spend much time thinking about my loans.

[ICANHASMUNY?]

Well, it would appear nothing much has changed for me. But that's ok. I don't spend much time thinking about my loans.

have you been thru the CFPB q/a site fore paying off SL?

 

maybe there are options you aren't aware of

 

http://www.consumerfinance.gov/paying-for-college/repay-student-debt/#Question-1

[hodap2001]

StudentAid.gov too has a lot of great information on repaying your student loan debt too! Most of the information on CFPB is from StudentAid.gov (copy-cats!)

[Bohemian]

Thanks Ican and Hoda. I'm not a new borrower and have been on the IBR for a while now. My payment is zero. It doesn't get much better, I was just curious what ideas were being bandied about. They are great ideas, but don;t affect me. Thanks again.

[hodap2001]

I don't think you could have a better repayment plan than $0.00 a month!

[DaddyO]

Well, it would appear nothing much has changed for me. But that's ok. I don't spend much time thinking about my loans.

 

 

but nothing will change until December 2015......if all goes well, in Dec 2015 the 10% paymnt rule will apply.

 

 

if I am reading this correctly.