{"id":143920,"date":"2023-07-06T07:00:31","date_gmt":"2023-07-06T11:00:31","guid":{"rendered":"https:\/\/valorguardians.com\/blog\/?p=143920"},"modified":"2023-07-04T12:49:22","modified_gmt":"2023-07-04T16:49:22","slug":"student-loans-a-modest-proposal","status":"publish","type":"post","link":"https:\/\/www.azuse.cloud\/?p=143920","title":{"rendered":"Student Loans: A Modest Proposal"},"content":{"rendered":"

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Well, we all know what happened with the Supreme Court – they looked at Biden’s student loan cancellation program and decided (amazingly) that financial matters are Congress’ purview and that ol’ Joe was overstepping his authority a tad. OK, a few light-years. Lot of folks on the left side of the aisle, notably the Free Shit Army who want everything paid for FREE (meaning by someone else), are unhappy with this. There has been a three year moratorium while student loan payments have been suspended, and I am guessing that even if interest was put on a moratorium as well, no one wants to start making payments again.<\/p>\n

Now the Republicans have unleashed their counterproposal to Biden’s plan:<\/p>\n

Members of Foxx’s committee have introduced a bill called the Federal Assistance to Initiate Repayment (FAIR) Act, which would allow student loan borrowers to access affordable and burden-free repayment options, according to the text.<\/p>\n

Among other changes, it would require the education secretary to make “at least 12 notifications” to borrowers before repayment begins — including options for repayment, the deadline and more.<\/p>\n

The legislation would also create an income-driven repayment plan, set at 10% of borrowers’ discretionary income, and would automatically have borrowers repaying based on their income.<\/p>\n

Interest would be paused and half of a borrower’s payment would go toward the principal for those with adjusted gross income that is less than 300% of the federal poverty line — or $45,675 for people under 65.<\/p>\n

GMA<\/a><\/p><\/blockquote>\n

Me, I don’t see much light at the end of the tunnel on this proposal either. The main issues with student loans, from what I read, is a) the universities made easy loans a license to steal by raising their rates ridiculously almost across the board, and b) high compounding interest which makes them like the Mafia loans with the old 6 for 5 weekly vig. Or did we rename our government “The Company Store” at some point?<\/p>\n

Not sure there is much to be done on the university side – if you think the local U is too high priced, don’t send your kid there – and let them know why. If attendance falls enough, maybe they’ll be forced to reprice their services. But on the interest side, The United States of Shylock has a relatively easy solution available.<\/p>\n

Given: folks accepted those loans of their own free will – they should be paid back. What they seem to complain about most is the vig\u00a0<\/del> the interest they accumulate, right? How about a loan reset , recompute the loan at a modest straight-line interest like 5% or 6%, deduct the payments already made against that total, and have them continue to pay off at that rate?<\/p>\n

You would think the payments would drop significantly, and borrowers would be able to see light at the end of the tunnel.<\/p>\n

Those who owe millions on their underwater basket weaving degrees… well, Ron White may have already addressed them. You can’t fix stupid. But for folks who borrowed as much as a new car or two would cost, this would allow them to pay off in a reasonable time – and without sticking the rest of us with the bill.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Well, we all know what happened with the Supreme Court – they looked at Biden’s student … Student Loans: A Modest Proposal<\/span>Read more<\/a><\/p>\n","protected":false},"author":668,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[220,213],"tags":[],"class_list":["post-143920","post","type-post","status-publish","format-standard","hentry","category-the-floggings-will-continue-until-morale-improves","category-your-tax-dollars-at-work"],"_links":{"self":[{"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/posts\/143920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/users\/668"}],"replies":[{"embeddable":true,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=143920"}],"version-history":[{"count":0,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/posts\/143920\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=143920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=143920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=143920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}