Kosar_For_President Posted May 6, 2014 Report Share Posted May 6, 2014 Wow a senator actually doing something. I like it. Let's hear it, she a women and a democrat. Who give a shit, this is a good thing. WASHINGTON — U.S. Sen. Elizabeth Warren is introducing legislation in the Senate on Tuesday that tackles two of her policy priorities - college debt and the tax rate paid by the wealthy. Warren, a Massachusetts Democrat, is poised to introduce a bill which, in part, would allow people holding student loans financed at rates higher than today's interest rate to refinance those loans, similar to the way one refinances a home mortgage or car loan. "When interest rates drop, people can refinance their home, they can refinance their business debt. It's regarded as a smart move for any consumer or business. But student borrowers are prohibited from doing that under most programs," Warren told MassLive.com. "This bill says we're going to change that and let them refinance that down to current low rates." Warren said the measure, which would also allow those with privately held student loan debt to refinance their debt under the Federal Direct Loan program, equals savings for the consumer, which would be funneled back into the economy. It would also take a crack at the statistic showing that one in seven borrowers defaults on their student loans within three years of beginning repayment. "There are more than 40 million people currently dealing with student loan debt. When their interest rates are cut, many will save hundreds of dollars a month and many more will save thousands of dollars a month," Warren said. "That's money they can use to build an economic future and to strengthen the economy." Warren pointed to a report released by the Government Accountability Officein January which determined that based on the loans issued between 2007 and 2012, the federal government stood to profit to the tune of $66 billion from the interest. In her eyes, the government profiting to that degree off the backs of people trying to better themselves is "just plain wrong." "This is $66 billion on just the loans issued during that period. That is insane," Warren said. "This (bill) brings that down. Instead of taxing students who can't afford to pay for college up front, it says we are investing in those students." But since cutting something that has generated such a huge profit over just five years will place a hole in the already-stretched federal budget, Warren is proposing a solution, albeit one that is bound to be viewed as being as political as it is practical. Warren is proposing the government make up the anticipated shortfall by enacting the so-called Buffett Rule, which is derived from a statement made by billionaire Warren Buffett, who suggested that he shouldn't be taxed at a lower rate than his secretary. Enacting the Buffett Rule, which Republicans in the Senate voted to kill in 2012calling it a "political stunt," would increase the income tax rate of Americans earning more than $1 million annually. The money generated through that move, according to Warren, would make the difference and send a message about the nation's "values." "The act covers the full budgetary cost of refinancing by implementing the Buffett Rule. Basically, the way I see it, there are billions of dollars here that flow out of the U.S. Treasury to a tax loophole, that are available to millionaires and billionaires. This bill says to use that money to reduce the interest rate on student loans," Warren said. "So it's a pretty direct choice - should America be investing billions of dollars in tax loopholes for billionaires or investing that money to help young people who are trying to get an education? I think spending should be consistent with our values." When asked if the political nature of how the mass refinancing would be paid for hurts the bill's chances of becoming law, Warren said that she crafted it using the same interest rates Republicans voted to approve in the summer of 2013, so a choice would have to be made. "I start with the fact that nearly all of the Republicans voted to reduce the interest rate on new loans last summer. This bill picks up exactly the same (interest rate) numbers they voted for and says let's use this to refinance all loans. The Republicans have already voted to say an interest rate above the current lending rate is too high, so what about the $1.2 trillion that is outstanding?" Warren said. "If the Republicans feel like it's more important to keep the tax loopholes open, then they are making their values very clear, and that will be a sharp difference between the two parties." Link to comment Share on other sites More sharing options...
LogicIsForSquares Posted May 6, 2014 Report Share Posted May 6, 2014 Sounds nice but I don't see it going anywhere. The average person with student loan debt doesn't have a lobby. They can't afford it. Link to comment Share on other sites More sharing options...
VaporTrail Posted May 7, 2014 Report Share Posted May 7, 2014 Sounds nice but I don't see it going anywhere. The average person with student loan debt doesn't have a lobby. They can't afford it. Yep. Link to comment Share on other sites More sharing options...
Westside Steve Posted May 7, 2014 Report Share Posted May 7, 2014 Sounds nice but I don't see it going anywhere. The average person with student loan debt doesn't have a lobby. They can't afford it. They can't? Then I am wondering why they would have a student loan in the first place. If you are not, in fact, studying to get a lucrative position why do it? And if you are not what good is subsidizing your education? What is the benefit for the taxpayer who picks up the tab? Warrens plan to give some free shit to students will certainly be favorable among, well gee whiz, students. (and lest we forget what the bill is... Lowering interest rates on existing student loans primarily paying for that with federal money) WSS Link to comment Share on other sites More sharing options...
FairHooker11 Posted May 7, 2014 Report Share Posted May 7, 2014 which leads to campaigns ... elections.... Link to comment Share on other sites More sharing options...
LogicIsForSquares Posted May 7, 2014 Report Share Posted May 7, 2014 They can't? Then I am wondering why they would have a student loan in the first place. If you are not, in fact, studying to get a lucrative position why do it? And if you are not what good is subsidizing your education? What is the benefit for the taxpayer who picks up the tab? Warrens plan to give some free shit to students will certainly be favorable among, well gee whiz, students. (and lest we forget what the bill is... Lowering interest rates on existing student loans primarily paying for that with federal money) WSS You can have a lucrative job and still not have the billions needed to buy politicians. Link to comment Share on other sites More sharing options...
LogicIsForSquares Posted May 7, 2014 Report Share Posted May 7, 2014 Let us not forget that the banks who front the money for the loans are the same guys who got a huge bailout because they were so shitty at their job. Warren isnt even asking for total forgiveness of loans like the banks got.But if Joe Schmoe is having a rough time paying rent due to student loans, tough shit. He shouldn't have tried to better himself. Link to comment Share on other sites More sharing options...
gftChris Posted May 7, 2014 Report Share Posted May 7, 2014 Out of curiosity, what's the student loan rate like there? Woody - how much for your tuition, and how much will you repay? Link to comment Share on other sites More sharing options...
LogicIsForSquares Posted May 7, 2014 Report Share Posted May 7, 2014 When I paid mine off, between 5-7%. Average student loan debt is 29k. Link to comment Share on other sites More sharing options...
LogicIsForSquares Posted May 7, 2014 Report Share Posted May 7, 2014 If I remember correctly, they try to get you to pay it off in 7 years. Link to comment Share on other sites More sharing options...
Westside Steve Posted May 7, 2014 Report Share Posted May 7, 2014 Let us not forget that the banks who front the money for the loans are the same guys who got a huge bailout because they were so shitty at their job. Warren isnt even asking for total forgiveness of loans like the banks got.But if Joe Schmoe is having a rough time paying rent due to student loans, tough shit. He shouldn't have tried to better himself.Oh please.The education lobby certainly has billions to spend. And who benefits by the Fed picking up the tab for student loans? Let's see... Golly logic I cant imagine. And joe what did you major in? And how about the guy that's having a rough time paying his mortgage because the teachers union is raping him through property tax? Oh yes they have a lobby don't they? WSS Link to comment Share on other sites More sharing options...
Westside Steve Posted May 7, 2014 Report Share Posted May 7, 2014 When I paid mine off, between 5-7%. Average student loan debt is 29k.the price of a decent car... plus I bought my first home at 10%. So what? WSS Link to comment Share on other sites More sharing options...
LogicIsForSquares Posted May 7, 2014 Report Share Posted May 7, 2014 the price of a decent car... plus I bought my first home at 10%. So what? WSS I was replying to Chris. You are inferring that I was saying that as if it is a big deal. Tough morning? Link to comment Share on other sites More sharing options...
LogicIsForSquares Posted May 7, 2014 Report Share Posted May 7, 2014 Oh please. The education lobby certainly has billions to spend. And who benefits by the Fed picking up the tab for student loans? Let's see... Golly logic I cant imagine. And joe what did you major in? And how about the guy that's having a rough time paying his mortgage because the teachers union is raping him through property tax? Oh yes they have a lobby don't they? WSS You do realize that teachers unions have nothing to do with federal student loans or college students in the least bit? So using the plight of some guy getting reamed by a teachers union has fuck all to do with the discussion. I am pretty anti-tax. My argument would be that education is artificially inflated by the feds and the banks that are in league with the feds. Ripping off people who are just trying to get started is a load of shit. The universities are just as at fault because they can name their price and they know that people are put in the position of having to take it because most jobs (ex: sorting mail at a VA office here in Huntington; why the fuck do you need a college education for this?) require a college education. Under Warren's plan, the debts would still get paid off. They would just be able to get refinanced like everything else you can refinance (car, home, etc). As for her plan to tax billionaires, it is laughable. We piss away money and then want to try to find revenues somewhere that won't nearly cover the cost of the money that is going out. Link to comment Share on other sites More sharing options...
Westside Steve Posted May 7, 2014 Report Share Posted May 7, 2014 I was replying to Chris. You are inferring that I was saying that as if it is a big deal. Tough morning? Nope. You just didn't quote who you were referring to. I figure 29 grand is a fair price if it leads to a decent paying vocation. I also think the skyrocketing cost of education is due in great part to government subsidies. WSS Link to comment Share on other sites More sharing options...
LogicIsForSquares Posted May 7, 2014 Report Share Posted May 7, 2014 Nope. You just didn't quote who you were referring to. I figure 29 grand is a fair price if it leads to a decent paying vocation. I also think the skyrocketing cost of education is due in great part to government subsidies. WSS Oh I am with you on that. The government will give the loans up to the amount asked by public universities. It is a big scam. The universities would lower their rates if they thought that the government wasn't free wheeling with loans. Student debt would drop because universities would need students and those students would be paying out of pocket. Link to comment Share on other sites More sharing options...
Westside Steve Posted May 7, 2014 Report Share Posted May 7, 2014 and indeed I know the teachers unions are not the only portion of the education lobby. That's why I mentioned both. So you don't believe colleges and universities have a lobby hoping for the federal government to pass out more money? You think the trade schools have no stake in that fund? I just mentioned the teachers union jacking up property tax, which isn't federal either, because you seemed worried about Joe Schmoe and his rent. People have mortgages too. WSS Link to comment Share on other sites More sharing options...
Westside Steve Posted May 7, 2014 Report Share Posted May 7, 2014 I'm glad we understand each other on that issue. If I didn't think I would hate teaching guitar I'd imagine I could find something even the stupidest kids could play if the federal government is subsidizing his tuition. I know someone personally who is getting paid handsomely to go to school online and passing courses that wouldn't challenge a monkey. WSS Link to comment Share on other sites More sharing options...
LogicIsForSquares Posted May 7, 2014 Report Share Posted May 7, 2014 and indeed I know the teachers unions are not the only portion of the education lobby. That's why I mentioned both. So you don't believe colleges and universities have a lobby hoping for the federal government to pass out more money? You think the trade schools have no stake in that fund? I just mentioned the teachers union jacking up property tax, which isn't federal either, because you seemed worried about Joe Schmoe and his rent. People have mortgages too. WSS If they do (not aware of any formal lobby, I could be wrong), they certainly aren't lobbying for the benefit of the students. Trade schools are at least reasonable and can be paid off by a person working a day job on top of going to school. This is why I talked my brother out of going to a university. When I graduated highschool, all the teachers, counselors, etc. were on a huge push for college. Saying you have to go to college but didn't tell the kids that just going to college is not enough haha. You can't get a philosophy degree and pay your bills after school. If I were to go back to when I was 17, I would tell myself to go to trade school. My brother was skeptical but now he owns his own HVAC business. Link to comment Share on other sites More sharing options...
LogicIsForSquares Posted May 7, 2014 Report Share Posted May 7, 2014 I'm glad we understand each other on that issue. If I didn't think I would hate teaching guitar I'd imagine I could find something even the stupidest kids could play if the federal government is subsidizing his tuition. I know someone personally who is getting paid handsomely to go to school online and passing courses that wouldn't challenge a monkey. WSS Online classes are generally a joke haha. Just another way to milk more fed dollars. Link to comment Share on other sites More sharing options...
Westside Steve Posted May 7, 2014 Report Share Posted May 7, 2014 Sure and I don't mean to say its all bad. A good friend of mine was laid off by a union machine shop that went tits up. among the paid benefits they could choose was selecting a trade school. He chose to go to barber college and now owns his own shop. WSS Link to comment Share on other sites More sharing options...
MLD Woody Posted May 7, 2014 Report Share Posted May 7, 2014 Out of curiosity, what's the student loan rate like there? Woody - how much for your tuition, and how much will you repay? I spent 7 semesters at Michigan (was able to get out one early, so I worked a semester to stay on the 4 year path, graduate with buddies, etc). The total for all of that, tuition and housing, came out to about $180,000. Books, food, etc, stuff like that I paid for directly, so that number is just tuition and housing. Being an out of state student going to the University of Michigan, there isn't a ton of financial aid they give you. Most of it is saved for in state students. I got a small amount of scholarship money here and there, but nothing big. The main way they gave me financial aid was through govt loans. Direct Stafford Subsidized Loan, Direct Stafford Unsubsidized Loan, Federal Perkins Loan. The Direct Stafford Subsidized has an interest rate of 3.86% now (3.40% on my previous ones) and I don't need to start repaying for 6 months. I believe it start accruing interest either now that I am officially out of school, or when I officially start work. The Direct Stafford Unsubsidized has an interest rate of 6.80% and I also do not need to start repaying these for 6 months. These have been accruing interest already though. The Federal Perkins is a loan taking directly from the school, or the school is "the lender" or something. The interest rate on this is 5.00% and I don't need to start repaying this for like a year and a half. I think this load accrues interest like the Subsidized loan as well. All in all I only have $17,500 in debt, so not much (and like 10 on my car, haha). The bulk of that is in subsidized loans as well. I believe because I do not have a ton of loans, and therefore not a ton of interest, I can deduct the interest I paid on my student loans in my tax returns. Link to comment Share on other sites More sharing options...
Kosar_For_President Posted May 7, 2014 Author Report Share Posted May 7, 2014 $180,000 Wholey shit, I though mine was bad. Link to comment Share on other sites More sharing options...
MLD Woody Posted May 7, 2014 Report Share Posted May 7, 2014 Yep, that's OOS at Michigan. That's only for 7 semesters too, not 8. Link to comment Share on other sites More sharing options...
Westside Steve Posted May 7, 2014 Report Share Posted May 7, 2014 but you say you owe 17.5 K? and, if successful, you stand to make ballpark per year...........? WSS Link to comment Share on other sites More sharing options...
DieHardBrownsFan Posted May 7, 2014 Report Share Posted May 7, 2014 Poor little rich boys, gotta pay back a loan. Link to comment Share on other sites More sharing options...
MLD Woody Posted May 7, 2014 Report Share Posted May 7, 2014 My family isn't rich, I'm just fortunate enough to have a father that was smart with money. He, with the help of funds from my grandma, put together a good college fund for me. 17.5k left to pay after my education is not much at all, and I'm very grateful for it DieHard sounds cranky. His assisted living nurse should get him to bed. He must be tired. Link to comment Share on other sites More sharing options...
MLD Woody Posted May 7, 2014 Report Share Posted May 7, 2014 but you say you owe 17.5 K? and, if successful, you stand to make ballpark per year...........? WSS Depends on what I do. I want to go into management. So, I could make a lot of money. My starting salary now is in the 60ks and I turned down offers in the 70ks. 17.5k won't be much at all. Link to comment Share on other sites More sharing options...
Westside Steve Posted May 8, 2014 Report Share Posted May 8, 2014 Nope, 17 K is chicken feed. Congratulations! WSS Link to comment Share on other sites More sharing options...
MLD Woody Posted May 8, 2014 Report Share Posted May 8, 2014 Thanks Link to comment Share on other sites More sharing options...
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