student loan bailout needed

[sabbat hunter]

I think the next step that should be taken is to help those with student loans out. There are millions that are indebted and are being crushed by student loans, young people who can use the help in getting out from under these loans, spend that money elsewhere. I do not think the loans should be forgiven, but interest rates adjusted, some interest waived.


Also I think that the Bush tax cuts should be repealed and replaced by an exemption of the first 50k of earned income from income taxes.

[closeupready]

1. Interest should be prime + 1 or 2 - that's it.

n/t

[peace13]

2. People don't realize what has happened to school loan interest.

My son consolidated some of his school loans this summer. The interest rate had been at 6.5! We refinanced at 4.5. 4.5 still seems high when you consider that banks are paying 0% on savings accounts these days. He does have a job, so that is good...even if it does pay $16 dollars an hour. I wonder how many people are aware of just what their interest rate is on these loans.

[dionysus]

6. and once you consolidate, you are basically locked in forever.

to date i have paid around 12k in interest vs 2k principle on my loan

[sabbat hunter]

12. open up an ING Direct account

they are paying 2%. still sucky but better than 0%

[debbierlus]

3. Yep - interest rates should go WAY down & there should be a option for work exchange

For forgiveness...with a larger percent forgiven then actual hours put in.

My sister and her husband have a couple hundered thousand in loans combined and it is dead weight around their shoulders. Even the interest rate reductions would be a huge help.

[BonnieJW]

4. Parent Plus loans, too.

Our daughters took over these loans once they began working, but have had to give them back to us in the downturn. It was legit, though, they were really hurting and they will take them back once they get better financially. Although from what I'm reading, that could be quite some time.

[closeupready]

5. Oh, and also, student loans should be dischargeable in Chap. 7, if necessary.

It is immoral for our government to lord financial obligations over citizens for their lifetimes. Citizens should pay it back, if they can, but if disaster happens, they should actually be the first thing to go.

[peace13]

8. At a minimum the interest rate should be as low as possible. n/t

[LiberalEsto]

7. We can't save a penny for retirement

because we're paying over $750 a month on our daughters' student loans, plus about $10,000 a year in tuition and fees for the younger one, who is still in school. Plus her rent and food. My husband earns a good salary, but I've been unemployed since October and am not having any luck finding a job. After paying our bills, there isn't a penny left over. My husband earns too much for us to qualify for any kind of tuition help for our daughter.

The student loans are just about killing us. Our older one is three credits short of her BA, and there is no money to help her finish. She is teaching at a private preschool and barely getting by. The one still in school can't find any kind of work in the economically depressed part of rural Virginia where she's living.

I fervently pray that President Obama eventually finds a way to help people like us refinance student loans, and more ways for our kids to work off part of their debts.

[izzybeans]

9. I pay more in student loans than i do for my mortgage, car payment, .

and insurance combined. All my supposedly disposable income goes to it.

[yurbud]

11. I pay more than rent

[yurbud]

10. I teach college, and ironically didn't make enough first 8 years to pay regularly, so interest..

doubled my nut to about $100K.

The student loan business is especially criminal for educators.

I enjoy my work, so it's not like I'm Mother Theresa for doing it, but I shouldn't be economically punished for choosing this career either.