One program, known as Pay As You Earn, allows borrowers to pay 10% a year of their discretionary income in monthly installments. The unpaid balances for consumers working in the public sector or for nonprofits are then forgiven after 10 years and those working in the private sector after 20 years.
Supporters say the plan is working as it was designed and that it teaches students responsibility while allowing them to pursue careers in fields that are historically low-paying.
The Wall Street Journal reported on one such benefactor, Jacqueline, a 2012 graduate from Syracuse University, who now works as a public defender in New York.
By using the income-based repayment plan, Jacqueline pays about $350 per month toward her $180,000 in debt. With a salary of $58,500, without the plan she would not be able to continue working in the public sector.
![Currently, there are only a few ways of getting your student loans forgiven: become a teacher, work in the public sector, or work for a non-profit. One program, known as Pay As You Earn, allows borrowers to pay 10% a year of their discretionary income in monthly installments. The unpaid balances for consumers working in the public sector or for nonprofits are then forgiven after 10 years and those working in the private sector after 20 years. Supporters say the plan is working as it was designed and that it teaches students responsibility while allowing them to pursue careers in fields that are historically low-paying. The Wall Street Journal reported on one such benefactor, Jacqueline, a 2012 graduate from Syracuse University, who now works as a public defender in New York. By using the income-based repayment plan, Jacqueline pays about $350 per month toward her $180,000 in debt. With a salary of $58,500, without the plan she would not be able to continue working in the public sector. While the popularity of Student loan forgiveness programs, such as this one, demonstrates not only their popularity, but their absolute necessity, with the quickly growing tab for such programs, opponents of forgiveness programs are, of course, voicing concerns that students and colleges could exploit the plans. Senator Lamar Alexander of Tennessee is one such opponent. While he stated that he can see the benefit of the [student loan forgiveness] program, he supports proposed changes. “Income-based repayment can be a way for students responsibly to manage debt, but it should not be a bailout for students who borrow too much or for schools who charge too much,” Alexander says. It sounds logical enough, but fails to connect policy with reality. The student loan crisis is at $1.3 Trillion and growing daily. One of the few student loan forgiveness programs, which have been "destroying the budget" and has congress grabbing for the purse strings, is expected to reach $14 billion next year, exceeding government expectations by 90%, as reported by the Wall Street Journal. The debt forgiven by the government, while adding up more quickly than anticipated, belies the reality that college degrees are not the great value or investment, as was promised. The unacknowledged reality is that few degrees are priced according to one's income prospects, and the people or entities with the statistics and facts to provide insight into which degrees are a value or not had a disincentive to do so. And each and every time there is fraud on a grand scale, we as a nation have chosen to punish the victim rather than the the perpetrator. When will we hold the appropriate parties responsible? Going back to Senator Alexander's remarks, he sternly put his foot down about bailouts for students. However, on October 1, 2008, he sternly raised his hand YEA to cast his vote for H.R.1424, the Emergency Economic Stabilization Act of 2008, otherwise known as the bailout of the financial institutions that ruined the U.S. economy. Hypocracy? Or once again a case of corporate bailouts and handouts, but no bailouts and handouts for the American citizens. In Senator Alexander's very words, we see the same tactics used by congresspeople when calling for cuts to basic social safety nets, like food stamps and unemployment, are now being exploited to force changes to the only significant program dealing with the $1.3 Trillion Student Loan Crisis in this country. And unfortunately, without lobbyists and congresspeople in our pockets, we the people are being ignored once again. In response to the illegitimate opposition posed by corporate-influenced congressional members, the administration is proposing a cap for debt eligible for forgiveness of $57,500 per student and extending the forgiveness window to 25 years. And while this proposal may keep the cost of student loan forgiveness down, it fails to recognize the magnitude of the student loan problem. In addition, congressional members like Sen. Alexander voted for an emergency bailout for banks in the initial amount of $760 Billion, but addendums and additional, unpublicized Fed funding put the total amount of the bailout of the failed financial institutions at nearly $4.7 Trillion. This is well over triple the cost of forgiving all outstanding student loan debt, allowing for a complete reset and redesign of the educational system. Tennessee Senator Lamar Alexander supports bailouts for banks but not for students, as some might abuse the program. While the popularity of Student loan forgiveness programs, such as this one, demonstrates not only their popularity, but their absolute necessity, with the quickly growing tab for such programs, opponents of forgiveness programs are, of course, voicing concerns that students and colleges could exploit the plans. Senator Lamar Alexander of Tennessee is one such opponent. While he stated that he can see the benefit of the [student loan forgiveness] program, he supports proposed changes. “Income-based repayment can be a way for students responsibly to manage debt, but it should not be a bailout for students who borrow too much or for schools who charge too much,” Alexander says. It sounds logical enough, but fails to connect policy with reality. The student loan crisis is at $1.3 Trillion and growing daily. One of the few student loan forgiveness programs, which have been "destroying the budget" and has congress grabbing for the purse strings, is expected to reach $14 billion next year, exceeding government expectations by 90%, as reported by the Wall Street Journal. The debt forgiven by the government, while adding up more quickly than anticipated, belies the reality that college degrees are not the great value or investment, as was promised. The unacknowledged reality is that few degrees are priced according to one's income prospects, and the people or entities with the statistics and facts to provide insight into which degrees are a value or not had a disincentive to do so. And each and every time there is fraud on a grand scale, we as a nation have chosen to punish the victim rather than the the perpetrator. When will we hold the appropriate parties responsible? Going back to Senator Alexander's remarks, he sternly put his foot down about bailouts for students. However, on October 1, 2008, he sternly raised his hand YEA to cast his vote for H.R.1424, the Emergency Economic Stabilization Act of 2008, otherwise known as the bailout of the financial institutions that ruined the U.S. economy. Hypocracy? Or once again a case of corporate bailouts and handouts, but no bailouts and handouts for the American citizens. The appropriate parties will never be responsible so long as they run our government with their money and financial "free speech". In Senator Alexander's very words, we see the subtle but effective tactics used by congresspeople when calling for cuts in the few basic social safety nets, like food stamps and unemployment, which are now being employed and exploited to force changes to the only significant program dealing with the $1.3 Trillion Student Loan Crisis-- the fear of program abuse and prospect that someone might get something they don't deserve. The financial institutions didn't seem ashamed when they lined up for handouts, and corporations don't seem ashamed when they get billions of dollars in tax breaks. Unfortunately, without lobbyists and congresspeople in our pockets, we the people are having our needs shoved to the side once again. In response to the illegitimate opposition posed by corporate-influenced congressional members, the administration is proposing a cap for debt eligible for forgiveness of $57,500 per student and extending the forgiveness window to 25 years. And while this proposal may keep the cost of student loan forgiveness down, it fails to recognize the magnitude of the student loan problem. What about the economic consequences of not dealing with this $1.3 Trillion problem? The truth is, we absolutely can deal with this problem. And Senator Lamar Alexander and others in congress should know better. Congressional members like Senator Alexander voted for the emergency bailout for banks in the initial amount of $760 Billion, however addendums and additional, unpublicized Fed funding of financial institutions put the total amount of the bailout of the failed financial institutions at nearly $4.7 Trillion. This is well over triple the cost of forgiving all outstanding student loan debt, allowing for a complete reset and redesign of the educational system. That is if we were only able to come to terms that education is indeed a right of all citizens, and not just a privilege for the few.](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjazhI7t-ogzwf_4mAGb9XazH3jqlXBMOCUoizveeFbOA3C3BH0cRK7TWC4tN7BFwc8vWARAgY06SPIgzuTqTCv_-1jPPPe08A5rB6PTxg_IZUo_pe06BwphU4YbFgBV0vAm0SmfGVafjap/s1600/Alexander_Senate_01057_image_1024w.jpg) |
| Tennessee Senator Lamar Alexander supports bailouts for banks but not for students, as some might abuse the program. |
Senator Lamar Alexander of Tennessee is one such opponent. While he stated that he can see the benefit of the [student loan forgiveness] program, he supports proposed changes.
“Income-based repayment can be a way for students responsibly to manage debt, but it should not be a bailout for students who borrow too much or for schools who charge too much,” Alexander says.It sounds logical enough, but fails to connect policy with reality.
The student loan crisis is at $1.3 Trillion and growing daily.
One of the few student loan forgiveness programs, which have been "destroying the budget" and has congress grabbing for the purse strings, is expected to reach $14 billion next year, exceeding government expectations by 90%, as reported by the Wall Street Journal.
The debt forgiven by the government, while adding up more quickly than anticipated, belies the reality that college degrees are not the great value or investment, as was promised.
The unacknowledged reality is that few degrees are priced according to one's income prospects, and the people or entities with the statistics and facts to provide insight into which degrees are a value or not had a disincentive to do so. And each and every time there is fraud on a grand scale, we as a nation have chosen to punish the victim rather than the the perpetrator.
When will we hold the appropriate parties responsible?
Going back to Senator Alexander's remarks, he sternly put his foot down about bailouts for students.
However, on October 1, 2008, he sternly raised his hand YEA to cast his vote for H.R.1424, the Emergency Economic Stabilization Act of 2008, otherwise known as the bailout of the financial institutions that ruined the U.S. economy.
Hypocracy? Or once again a case of corporate bailouts and handouts, but no bailouts and handouts for the American citizens.
The appropriate parties will never be responsible so long as they run our government with their money and financial "free speech".
In Senator Alexander's very words, we see the subtle but effective tactics used by congresspeople when calling for cuts in the few basic social safety nets, like food stamps and unemployment, which are now being employed and exploited to force changes to the only significant program dealing with the $1.3 Trillion Student Loan Crisis-- the fear of program abuse and prospect that someone might get something they don't deserve.
The financial institutions didn't seem ashamed when they lined up for handouts, and corporations don't seem ashamed when they get billions of dollars in tax breaks.
Unfortunately, without lobbyists and congresspeople in our pockets, we the people are having our needs shoved to the side once again.
In response to the illegitimate opposition posed by corporate-influenced congressional members, the administration is proposing a cap for debt eligible for forgiveness of $57,500 per student and extending the forgiveness window to 25 years.
And while this proposal may keep the cost of student loan forgiveness down, it fails to recognize the magnitude of the student loan problem.
What about the economic consequences of not dealing with this $1.3 Trillion problem?
The truth is, we absolutely can deal with this problem. And Senator Lamar Alexander and others in congress should know better.
Congressional members like Senator Alexander voted for the emergency bailout for banks in the initial amount of $760 Billion, however addendums and additional, unpublicized Fed funding of financial institutions put the total amount of the bailout of the failed financial institutions at nearly $4.7 Trillion.
This is well over triple the cost of forgiving all outstanding student loan debt, allowing for a complete reset and redesign of the educational system.
That is if we were only able to come to terms that education is indeed a right of all citizens, and not just a privilege for the few.
