Here's a bottom up bailout idea: forgive compounded interest on student loans

[yurbud]

Alternet had a good story on kids getting out of college and only being able to get crappy service jobs for years, so the interest piles up on their loans and makes them more and more unmanageable.

That is exactly what happened to me. I went to grad school hoping to become a community college instructor. It took me a couple of years to get my first teaching job, but even then, because I had to patch together several part time jobs, I wasn't able to make regular payments for seven or eight years--partly because none of my schools gave me health insurance for that period and I had to do it out of pocket.

Consequently, my debt doubled from $50,000 to more than $100,000.

That interest isn't even going to the federal government but to Chase Bank, who consolidated my loans.

I want to repay my debts, but when it is virtually impossible even when I have a government job, something is profoundly wrong. I'm sure a lot of people here have similar stories.

[LiberalEsto]

1. It's an excellent idea

The federal government also needs to regulate the outrageous practices of the companies that service these loans. Even though interest rates in general have dropped significantly over the past year, one of my daughter's month loan payments was increased by about $15. When I called to ask why, they told me it was because of higher interest rates.

I demanded to know why the interest rate on her loan was increased when other interest rates were dropping. I was handed over to a manager, then another, but nobody could explain it. Finally somebody told me that on the date the loan payment was re-calculated, the interest rate was allegedly higher that last year. This was utter horseshit, but I had no way to prove or disprove it. These variable rate student loans leave the door wide open for all kinds of sleazy practices.

[Trillo]

2. When you consider the huge sums (said to be) going to the banks from the taxpayers,

the idea of debt forgiveness balances some of the inequity.

However, why should it be limited only to student loans? For that kind of taxpayer subsidy, shouldn't every citizen be getting something in return now?

[TexasObserver]

3. Forgiven debt is income to the taxpayer.

You're better off now.

You need interest stopped, not forgiven.

[Johonny]

4. These should be grants not loans

end of story

[Gin]

5. I don't have a student loan...but I do have a mortgage and Credit card

debt...I could use a "grant"!!! Please????

[yy4me]

12. Me too, if all the biggies get handouts, I think we should get

one too. After all, we are the ones who put the (tax) money up for them to get. I don't want much, just pay me CC debt. It isn't that much but it sure would be a help to me. How about it, agree? Didn't **** tell us to go out and shop? Can we help it if we did and we're now in trouble because he screwed up. If there is going to be a bail out, we need some help too. No more of these piddly little checks. If we can support the world and the likes of AIG, we can give our citizens a check that they can actually make some kind of a dent with.

I'm not saying that the last incentive check was not appreciated but on the scale of things, we are far worse off than another $300.00 check will can cure.

[Greyhound]

6. Like everything the corprocrats do, student loans are just another corporate welfare program.

Like the SBA and a dozen other programs begun to help us, it was turned into a huge profit with no risk for connected campaign contributors.

Forgive them all, acknowledge our rights to health care, justice, and education.

[yurbud]

7. and make the bankers into food for stray dogs and cats

[yurbud]

8. I can't figure out why the help at the resort where AIG did their retreat didn't just sneak into

their rooms in the middle of the night, accidentally put a pillow over their heads, and then accidentally sit on it until the parasitic little ass weasels stopped struggling.

You could blame the mass deaths on bad sushi.

[Greyhound]

9. If you've ever stayed at The Pointe Tapatio Cliffs (I think that's what they call

it now that Squaw Peak is no longer Squaw Peak) you would know that the help is divided into two groups, the front of the house white children of privilege making some bucks while they are in school and the illegal back of the house Mexicans that do most of the work.

[yurbud]

10. so the white kids want to be the assholes, and the Mexicans don't know the guest are assholes?

[Greyhound]

11. The Mexican's just don't care, they're going to be fucked no matter what

and they know that. The new economy is going to really hurt them a lot.

One of the worst things about our profits-over-people economy is that we've siphoned off the Mexicans that are most needed in Mexico. The kind of person that will go through the danger and hardship to come here, if it were not an option, are the same people that would be helping to force the change that Mexico desperately needs.

[yurbud]

13. good point.

[AwakeAtLast]

14. I would fall into that category

My debt is not as large as yours, but I bet I've had mine longer. I would like to find a way to pay this puppy off quickly - I cannot increase the amount I pay right now. My interest rate is high and because I consolidated I can't refinance. For a supposed 'good loan' (as I was told when it was given to me) it's pretty bad. They have us over not one, but many, barrels. :(

Great idea! :hi: