Ditch Your Debt Gremlin

[bxrichards]

closed captioning/transcribing not accurate, could not use with my deaf students

[AnarchisThinker]

This is a great idea in itself, but there's only one problem: If you lift the responsibility of paying the debt away from people, more will decided to go to college. As it is, a growing number of people ALREADY go to college and with this scheme, more will do likewise. Even just throwing that out the window, who's going to pay the people now for that extra amount? The video doesn't say who it will take the money from, just who it will give it to. And it'll likely be paid by taxation.

[AnarchisThinker]

@AnarchisThinker Anything from the government will require some form of taxation to pay for it. Also, considering that taxation applies to everyone, along with everyone having a college loan being eligible for it, wouldn't the money just be going in a loop for college graduates and students, along with a one way for non-college graduates?

[CLASHofTHElonders]

watch some how you'll end up more in debt

[SpreadingTruths]

There's too many idiots getting useless college degrees and paying too much money for them.

[gotlogg]

I think this fucks up the education system in a very similar fashion to how we fucked up our housing market..

[credible2]

government-backed student loans are retarded

[MyKillK]

Obama just signed an update to this law so that the debt is forgiven after just 20 years, and after 10 years for "public service" workers. Using the press releases' own example, a public service worker making $30,000/yr would only have to pay $13,000 on student loan debt of any size, even $70,000 or more. $13,000 on a $70,000 debt????

These aren't loans, these are freaking giveaways! Maybe it's government-guaranteed schemes like this that are contributing to the runaway cost of tuition??

[ireddiamond]

@MyKillK sounds great to me :-D This is a great time to be a college student :-D i love it after working retail for 14 years I am back in school and this is such a relief to know if some thing goes wrong me and my family will be ok and not homeless on the streets.

[eiffuy]

@MyKillK exactly. People need to remember that government money is based on credit, so they will just keep on printing more and more money to "forgive" these debts causing inflation and just peg the national debt to each and every citizen.

[bluediamond2077]

@eiffuy I am stuck in the middle of this. I'm in college and know it's best for me if there is IBR when I get out because i'm not 100% sure i'll get a good job even though i'm going in the medical line of work. I don't want to get out and have such a large monthly bill that I can't survive. On the other hand I do agree with you about the inflation part. I'm prepping for hyper inflation incase. I recommend MELTUP on youtube if you havent seen it already. Very much a mixed bag here.

[beebop46n2]

This will only increase the amount of tuition schools charge because the perceived notion that monthly payments will be capped and loans will be "forgiven." In reality you are paying interest on those additional loans and a system that depends on tax dollars to "forgive" college debt is unsustainable. We need to either cap how much educational institutions can charge or stop the government guarantee on loans. Then lenders will have to look at the student's potential to pay the loan back.

[bluediamond2077]

what's wrong with the colleges getting more and more money? hell it's allot better to invest in americas future then to throw away tons of money on unnecessary wars. To stay a world power we need smart people that can invent things we can sell the world. We need Americans that can support there families and not drain on welfare. Also think . the college students of today will be paying higher taxes because they make more. Oh yeah the lender is going to be the Government. Obama changed that.

[eiffuy]

@bluediamond2077 the problem with colleges getting more and more money is that this 'money' is actually just credit. What system can, forever, run on receiving credit that is never repaid.

[bluediamond2077]

@eiffuy "What system can, forever, run on receiving credit that is never repaid."

No system can run forever like that you Sir are right. Look at the federal reserve. They can just print money out of thin air unbacked by Gold or silver like it use to be. They are printing so much that our dollar is falling. look at the prices of gold and silver going up as our dollar is falling. Soon hyper inflation will hit. Stock up now with food,water, supplies and a little silver. I am. -College student

[gotlogg]

@bluediamond2077 look, this is very simple. Maybe you didn't notice but higher education used to be much more affordable, then in came the government aid. Mr college admin guy isn't dumb and he knows that with 80% of students qualifying for aid he can increase tuition... YAY!! So the price goes up...Fed aid increase... tuition hike...aid increase... hike...etc. etc.... Now it's so high that feds will forgive (pay off the lender) student debt... Lenders like college admin guy sees free money.

[beebop46n2]

How much did your parents owe for their education? nuf said. Look at how much colleges are charging now a days. Everything from tuition, books, lab fees, etc... Every semester requires a new edition textbook which is practically identical to the older version all for the sake of money. I think the problem is quite clear. Another problem is the availability of loans for every tom, dick, and harry, pursuing art and humanities degrees. How about providing people opportunity to pay this off.

[PhillAlexandros]

If government can bail out banks and CEO's - they can help students who are simply trying to do something good with their lives. I shouldn't suffer because I chose an education. Someone here mentioned bankruptcy - but as far as I know, student loans aren't forgiven for bankruptcy in the U.S. either. However, if you have a degree and are getting $26,000 - that company needs to get sued. And I'm sure that we'll have to pay heavy taxes on the "forgiven" part too.

[PhillAlexandros]

I'm confused. Obama talked about capping student loan re-payments to approximately 10% of your annual income, and cancellation of debt after 20 years private, 10 years government service. However, isn't that this plan? How is that "on the talks" plan different from this?

[964mula]

2:06 make less than 26K (?? who could that be?) will pay NOTHING AT ALL? sounded great up to that. That just doesnt even look right. What do they mean? If I get students loans and end up a bum i dont have to pay back?

[medicinesux]

This is a great program for those with federal student loans. However, those with private student loans are still without ANY relief. I would hope that one day very soon our govt would allow us to convert these private student loans into federal ones so we could take advantage of IBR.

[seanmc30]

The one thing to research t is what happens when these loans are "forgiven". As I understand it, the law presently has the 'forgiven' portion of your loan tacking on to your taxable income. So if you have been paying small amounts for 25 years then all of a sudden your going to be shoved into the million dollar a year tax bracket and own Uncle Sam some fat money.

The IBR website says this is still under review, but worth checking out b4 you make a decision.

Still looks like a decent program.

[ericaj58]

This is awesome. This will help A LOT of graduates.

[ilovemycat00]

IBR is a great idea...however 25 yrs of payments is too much. The time it needs to be to make payments should be 5 years max.

[CisMediaGuy]

The person who created this animation deserves to have their job. Awesome work

[Axe2Dome]

Student loans are the biggest ripoff. And I wish canada had something like this, ours even follow us through bankruptcy.

[samuraiyao]

Salle Mae is calling me nonstop... I applied for a loan and a private one as well, but I didn't get to finish my degree... I didn't have enough to take another course and the lender won't allow me to borrow anymore... Don't understand this capitalism bullshit...

[sethcat99]

how is prison these days? its looking good, 3 meals, roommate, clothes. might not be so bad.

[ecitraro]

tobasco 77 > College is not a scam, PAYING for college is.

[beachbumm9]

Good news. Good delivery.

[xtrchessreal]

I struggle to stay alive in this economy, I have a huge house payment 1643/month no job, can't get a response from unemployment, living on credit right now, I have 81.8k in outstanding fed student loan. I am a BSEE from University of Colorado. Without this restructuring I will file Bankruptcy. The only hope is to go back to school and acquire even more debt. Hows that for opportunity cost you economists out there?

[tobasco77]

I graduated in 2004 with $46,000 in debt from my undergraduate degree... I currently work 50+ hours a week for 9.50 per hour... At least I am paid by the hour... If I took the salary they offered me, I would only be earning about 9.00 per hour... Never Mind the TAXES they take out of my paycheck.... Today, in 2009... Companies are filled with college graduates who work for NOTHING with ZERO benefits for 50+ hours per week and they all OWE $40,000+ for student loans...

COLLEGE IS A SCAM!!!!!

[Ildecoll]

Forgive Student Loans now!!!!stop rewarding thieves in Wall Street!!!! The productive individuals in this society are hurting because of the ignorance of the ignorants with power.

[urlilmunequita]

This plan, from all the trainings and certifications I've personally had to go into, is excellent for high balanced accounts. It was about time the goverment started to do something about all the interest private lenders charge.

Hope this helps!

[urlilmunequita]

It ends being the same as someone who earns less but owes less in student loans... and I see this everyday. This issue always comes up, and they pay and pay, but the loan balance barely goes down.

Again, my perspective can, and is biased because I speak to borrowers who are having financial hardship, and the ones who aren't are obviously paying and don't need asssitance.

This also happens to doctors who own their own practices, and have so much to pay out, they are left with little.

[urlilmunequita]

In the same way, their gross income (before taxes) is about 5000, but in reality, (as I'm sure you're well aware, it ends up being about 3500, depending on how they file their taxes.

Now imagine having to pay out about 20% of your monthly income towards your student loan. It is almost as high as a mortage on a small house. Generally, these lawyers also have families to support and a lot of taxes to pay at the end of the year because of the tax bracket they are stuck in.

[urlilmunequita]

Let me put an example for you:

lawyers who work as public defendats may earn about, say 60,000 a year. They owe in student loan debt about 150,000, monthly payments are around approx. 1300, from which about 1000 end up being interest (again, this all depends on their interst rate)... and 1000 in interest is very cheap for a high-balance loan.

[urlilmunequita]

Again, we speak to borrowers on daily basis, and even though there is a percentage of borrowers that owe a lot, but also have enough discretionary income to repay their student loans, there are many others on a financial crisis.

[BadCreditEasyLoan]

In some situations, your reduced payment under IBR may not cover the interest on your loans. If so, the government will pay that interest on your Subsidized Stafford Loans for your first three years in IBR. After three years and for other loan types, the interest will be added to the total amount you owe. While your debt may grow if your affordable payments are low enough, anything you still owe after 25 years of qualifying payments will be forgiven.

[armywife274]

Sooooooo grateful!!!!

[workn4evr]

To add insult to injury, if you have massive student debt from say, oh, law school or med school and you earn a decent salary that is reduced to a crap salary because of this, guess what? You don't qualify! How nice.

[writerach]

If you earn a decent salary, you should be able to PAY your loan back. This is for people who use their education to perform a public service for which they should not expect to realistically receive "a decent salary."

If your salary is "reduced to a crap salary," and it truly IS a crap salary, then you'd be eligible.

[workn4evr]

I would say ZERO would qualify as a crap salary. If a statement isn't clear to you, ask questions rather than jump to conclusions based on your biases. So please don't assume you know the whole story.

[rags847]

Huh? Why would a doctor or lawyer's 6 figure salary be "reduced to a crap salary because of this"? What the hell are you talking about?

[workn4evr]

Not everyone that attends law or med school practices these professions or even completes the education. You are sorely misinformed and biased if you think every doctor and lawyer earns 6-figure income like you see on TV. So, "the hell" I'm talking about is paying for the education even if you're not in the profession, regardless of the circumstance. Before blasting your uninformed vitriol, get the facts.

[rags847]

What the heckeroone are ya talkin' about? How does this program reduce a decent salary of a doctor or lawyer to a crap salary? How would you not qualify with a crap salary? How does 0 (zero) qualify as a crap salary and disqualify you from this program? And most doctors and lawyers clear six-figures (fact).

[lilgame34]

Must be nice to make those six figures when having to pay Dr.s insurance at 5 figures and their personal insurance and others. There is a statistic out there of many Dr.s saying if they could go back, they would choose a different career.

[rags847]

Poor doctors. They didn't want to help people, they wanted to have 3 Mercedes, instead of just two. Boo-hoo-hoo!

[urlilmunequita]

I work for the student loan industry...and to be honest with you... it's such a different view when I work with their financial statements and their profit/loss statements. You'd be surprised how little they can actually keep as income

[rags847]

Can you give us a typical example?

[bgatten]

Why are you complaining about this? Was there some program before that would have helped you out of your situation that this has replaced? Or are you just bitter that you didn't realize just how much med school would cost before you went and now gripe when other people benefit from a new program unrelated to your situation?

[crzblu3y3z]

Does this just work for fed. loans or private sallie mae loans as well?? anyone know??

[rse29]

It depends what you mean by private Sallie Mae loans. If you have Stafford or PLUS loans, which are Federal loan programs, for which Sallie Mae is the servicer, the Federal government will be allowing people to make those privately serviced Federal loans into Federal Direct loans in order to be eligible for the Public Service Loan Forgiveness. I'm not sure if you need to do that for IBR in general and the 25 year forgiveness if you work in for-profit sector.

[crzblu3y3z]

right- i have safford and plus loans but the gov would only give me so much because of the "majic" before your 24 and still go off of you parents income.- therefore only getting so much but not enough to pay entire tuition- rooma nd board and cost of living- therefore i had to take out "private" loans through sallie mae in order to cover the rest- understand?

I found out yesturday that they are not covered- so i am still owing 75K in private loans on a salary that is half that

[318767663]

GREAT !!!!!!!!!!!!!

[wanman2006]

Thanks Obama, but you are going to get it back somehow, it is what you do.

[johndoe2006xxx]

Bush signed this into law. Obama had nothing to do with it.

[ababy8mydingo]

True, but the bill was passed by the Democratic Congress that took over after the 2006 election so I don't think you can properly credit GWB with anything here.

[edieirons]

Yeah, the servicers and lenders don't all have as much info as we wish they did, but the program IS real and it WILL be available on July 1. Just keep calling them and asking for a supervisor.

And yes, it is federal student loans only. The video mentions that around 1:10. It's easy to miss a few details since there's a lot of info in there. Thanks for the tip!

[rigso321]

nice, I have alot of private loans too though, they don't count for this?

[pecanpie314]

nope. you're out of luck on that score.

[benfajen]

Awesome video!! Great job providing this important information to those who need to know about it.

[psmatt]

This sounds like a great program. Unfortunately I have called the servicer of my loan twice and they say they do not have enough info on IBR yet. Hopefully they will soon.

[kungpowvoodo]

Great job. Cute and informative!

A clarification that might be useful as the video circulates... the video just says, "students loans" and "your debt," but the written description specifies IBR covers just federal student loans. I assume a student's private debt won't be impacted.