TheHill.com reports:
“What we’re trying to do is help on the back end, to reduce those monthly payments on those loans,” Duncan said. “To make sure folks have a better opportunity to be successful there — less defaults will strengthen the economy, and we can do this by ourselves. We don’t have to wait for Congress — we can’t wait for Congress. We’re moving ahead today.”
According to Duncan, the Know Before You Owe plan will cap monthly student loan payments at 10 to 15 percent of the graduate’s income.The Obama team has long advocated moving student loans out of the private sector and making them a government-only operation. Now they advocate more money for the pipeline while capping loan repayment. Sounds like a sure-fire way to run more deficits, and ultimately stick someone else with the bill.
If government wants a put an end to abusive student loan debt, maybe it should stop loaning vast amounts of money to students who are pursuing courses of study that will never allow them to earn sufficient income to make realistic repayments.
These idiots think the solution to outrageous tuition prices is to simply loan more money. Quit subsidizing universities and create a market for them to offer competitive services. The Government has artificially increased demand to the point where an otherwise worthless degree can be yours for $80K.
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