Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.


Sign in to follow this  

Obama Plans Steps to Ease Student Debt

The last post in this topic was posted 2299 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Recommended Posts


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?

Share this post


Link to post
Share on other sites

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 by RedHairedLady

Share this post


Link to post
Share on other sites

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.

(B) This memorandum shall be implemented consistent

Share this post


Link to post
Share on other sites

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!) :)

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

The last post in this topic was posted 2299 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Similar Content

    • By skibble
      I am in the process of divorce, and I have racked up a lot of debt.
      I am not sure how much information I should give, so I will start with some basic information.
      I have a mortgage, car loan, lending club consolidation loan and 11 credit cards.
      I want to try to keep from filing bankruptcy, but not sure if it is even possible.
      My plan is to close several if not all of the credit card accounts.
      I want to call each company and explain my situation and see if they will allow me to close the account, adjust the balance and/or APR
      My wife owes me her share of the marital debt and is giving me half of the money owed.
      I was going to look at the accounts with the highest APR and highest balance and apply that money on them to help lower monthly payment amounts.
      Anyway I was curious if I am headed down the right or wrong path.
      I appreciate any input.suggestions
       
      sk
    • By tyabeau2
      After many years of paying rent we have decided we want a home of our own. Would 18 months be too early to start the mortgage process? Here is our story...bear with me it's long,
       
      Back in December of 2012 we closed our accounts at a traditional bank and moved our accounts to a credit union (bank was giving us no love even when we never overdraft in the 5 years with them). September of 2013 requested a CC from credit union and received it. Been keeping uti under 10% paying off each paycheck. November we received a car loan with credit union for a 7.99% interest for $33,000, paying on time, never late. Husband is an authorized user on brother's AMEX to help build credit.
       
      In other words we didn't have good credit. Husband's "baddies" will fall off in 2015. My baddies were all medical from hospitalization in 2012. Used WhyChat's method and they are all gone! In September I went on a CC spree and obtain a Capital One CC, Wal-Mart and Care Credit (joint with husband) for me and for husband a Valero, Care Credit and Target. Will keep balances down to at the most 1% and pay off each month.
       
      My credit scores are as follows: EQ 637, EX 615, TU 611 (Very excited about my scores, this time last year they were all in the low 500s!)
      Husbands scores are as follows: EQ 600, EX 559, TU 614 (He has 5 baddies, scheduled to fall off by 2015)
       
      We are planning on using our Credit Union since we are building a relationship with them, with the car loan and cc. I was also planning on April of 2015 obtaining one more CC, not a store card, to help our portfolio. Should I or should I not???
       
      I need advice on what we need to do to bring our scores up by May of 2016 to obtain a mortgage at a good rate. I hear that 620 is the rate some loan companies will approve. I want at least a low 700 or very high 600 before we start looking. Would love a 720 to 750 on all! My husband's score will go up once the "baddies" are gone. I am worried about how recent our credit will be and if that would be an issue on obtaining a mortgage.
       
      Need to also mention, both of us have two jobs and nickel and diming everything to save at least 20% to put down on a place. I've been at my current full time employment for over 9 years, husband just switched jobs in October, 2013 so he has been there a year.
       
      Would we be able to obtain a mortgage loan in 18 months???
    • By hodap2001
      Federal Student Aid will be replacing the PIN to a user name and password based log-on system. Check it out here: http://www.ifap.ed.gov/eannouncements/100114NewFSAIDtoReplacetheFederalStudentAidPIN.html
    • By ImStartingOverAgain
      First, I would like to thank everyone here for sharing your wealth of information. I just signed up a few days ago and have been lurking for about 2 weeks.
       
      A little about me. I walked away from everything approximately 6 years ago in order to leave an abusive relationship. I had a house, a car, a few credit cards and a few other outstanding bills. I knew my credit was going to be trashed, but I didn't much care. I have essentially been living without any credit since then. A few weeks ago, I decided to try and rebuild my credit and that is how I ended up here.
       
      I have been reading the newbie section and I will admit that I am overwhelmed. I have started by trying to delete my old addresses and by opting out.
       
      I am content to let most of my old debt fall off of my report. No one is trying to actively collect from me at the moment and I can easily wait as things will start dropping by this coming March (2015) and most should be off by July (2015). I do have a Midland collection that I am confused about how to proceed. It is scheduled to fall off in November of 2016. The original debtor was TMobile and the amount is $357. The statue of limitations for open ended accounts in my state is 3 years. But for written contracts is 10 years. I can't find clear information about how my TMobile account is classified.
       
      Any ideas about how to handle this? Should I ignore it and wait for it to fall off? Should I make an attempt to get it off of my report? I can't tell if this is still within the SOL or if I am safe from that now. I was hoping to have my credit cleaned up enough by mid 2015 to purchase a small starter home for me and my kids.
       
      The only report I have pulled so far is Experian. Credit Karma says I have a score of 580 and that is with the record of a foreclosed home, repossessed vehicle and several charged off credit cards and utilities.
       
      I hope that I am posting this in the right place and that you will offer some advise as what the best course of action might be.
    • By hodap2001
      John Oliver discusses student debt, which is awful, as well as for-profit colleges, who are awfully good at inflicting debt upon us. https://www.youtube.com/watch?v=P8pjd1QEA0c



  • Member Statistics

    • Total Members
      179,661
    • Most Online
      2,046

    Newest Member
    aferr1981
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines