President Obama announces changes to federal student loan repayments

President Obama talked to Denver college students today about changes to federal student loans.  (AJC file)

President Obama talked to Denver college students today about changes to federal student loans. (AJC file)

I took part in a media call yesterday with Education Secretary Arne Duncan on the White House “pay as you earn” plan to help college grads tame their student debt loads and create more workable repayment schedules.

Under the new rules that go in effect in January, 1.6 million borrowers can cap their federal student loan repayments at 10 percent of their income.

President Obama cited the plan today in a speech in Denver on the economy and jobs creation. Here is a relevant excerpt of that speech:

Over the past three decades, the cost of college has nearly tripled. And that is forcing you, forcing students, to take out more loans and rack up more debt. Last year, graduates who took out loans left college owing an average of $24,000.  Student loan debt has now surpassed credit card debt, for the first time ever.

Now, living with that kind of debt means making some pretty tough choices when you’re first starting out.  It might mean putting off buying a house.  It might mean you can’t start a business idea that you’ve got.  It may mean that you’ve got to wait longer to start a family, or certainly it means you’re putting off saving for retirement because you’re still paying off your student loans.

And when a big chunk of every paycheck goes towards student loans instead of being spent on other things, that’s not just tough for middle-class families, it’s painful for the economy and it’s harmful to our recovery because that money is not going to help businesses grow.

And let me say this — this is something Michelle and I know about firsthand.  I’ve been in your shoes…We did not come from a wealthy family…So by the time we both graduated from law school, we had, between us, about $120,000 worth of debt.  We combined and got poorer together.  So we combined our liabilities, not our assets. So we were paying more for our student loans than we paid on our mortgage each month.

Then in last year’s State of the Union address, I asked Congress to pass a law that tells 1 million students they won’t have to pay more than 10 percent of their income toward student loans.  And we won that fight, too  — and that law will take effect by the time — that law is scheduled to take effect by the time freshmen graduate.

But we decided, let’s see if we can do a little bit more.  So today, I’m here to announce that we’re going to speed things up.   We’re going to make these changes work for students who are in college right now.  We’re going to put them into effect not three years from now, not two years from now — we’re going to put them into effect next year because our economy needs it right now and your future could use a boost right now.

So here is what this is going to mean.  Because of this change, about 1.6 million Americans could see their payments go down by hundreds of dollars a month — and that includes some of the students who are here today. What we’re also going to do is we’re going to take steps to consolidate student loans so that instead of paying multiple payments to multiple lenders every month — and let me tell you, I remember this.  I remember writing like five different checks to five different loan agencies — and if you lost one that month, you couldn’t get all the bills together, you missed a payment, and then suddenly you were paying a penalty.  We’re going to make it easier for you to have one payment a month at a better interest rate.  And this won’t cost — it won’t cost taxpayers a dime, but it will save you money and it will save you time.

And we want to start giving students a simple fact sheet.  We’re going to call it “Know Before You Owe”  so you have all the information you need to make your own decisions about how to pay for college.  And I promise you, I wish Michelle and I had had that when we were in your shoes. So these changes will make a difference for millions of Americans.  It will save you money.  It will help more young people figure out how to afford college.  It can put more money in your pocket once you graduate.  And because you’ll have some certainty, knowing that it’s only a certain percentage of your income that is going to pay off your student loans, that means you will be more confident and comfortable to buy a house or save for retirement.  And that will give our economy a boost at a time when it desperately needs it.   So this is not just important to our country right now, it’s important to our country’s future.

When Michelle and I tuck our girls in at night, we think about how we are only where we are because somewhere down the line, somebody decided we’re going to give everybody a chance.  It doesn’t matter if you’re not born wealthy; it doesn’t matter if your dad is disabled or doesn’t own his own home; it doesn’t matter if you’re a single mom who had to take food stamps — you’re still going to get a shot.  You’re still going to get an education.   This country gave us a chance.  And because our parents and their generation worked and sacrificed, they passed on opportunity to us.  And they didn’t do it alone.  It was something that we as a country did together.

And now it’s our turn — because the dream of opportunity is what I want for you, and I want for my daughters, and I want them for your children.  I want them for all young people, because no matter how tough times are, no matter how many obstacles stand in our way, we are going to make the dream that all Americans share real once again.  And that starts right now.  It starts with you.

–From Maureen Downey, for the AJC Get Schooled blog

78 comments Add your comment

Atlanta mom

October 26th, 2011
5:22 pm

How will much will the interest rate be lower?
You know, if you have a debt, and you take a longer time to pay off said debt, that doesn’t save you money in the long run. It costs you money. Anyone with a 15 year mortgage understands that.

Atlanta mom

October 26th, 2011
5:23 pm

let’s try “How much will the interest rate decrease?”

carlosgvv

October 26th, 2011
5:30 pm

The total amount of student loans is now about one trillion dollars. More and more students either can’t find any work or are under employed. Let’s hope this plan works so we don’t have another financial crisis like the housing one.

Teacher Reader

October 26th, 2011
5:53 pm

Why is the government taking responsibility for a person’s choice to go into debt for their education? No one is paying my student loans. They won’t be paid off until my son begins college and my interest rate is 8.5%, because at that time it was considered a great rate and I consolidated my loans. One should consider the cost of college, their major, and their earning potential before signing the dotted line.

Education prices are just going to keep going up at astronomical rates, as the government will keep giving kids loans that they obviously can’t afford to pay off. Why will the universities slow down in raising their rates now?

Our college diplomas have become the high school diploma of the sixties. How doe this make any sense?

Hopefully someone will get put into office to show people that we all need to take personal responsibility. When you make a choice you need to suffer consequences. This goes for businesses and people. I am tired of paying my way, watching my husband work long hours, spend little time with his family, and pay our bills on time while others just keep taking from the government.

College

October 26th, 2011
7:41 pm

You should take your own advice and take responsibility for your 8.5% interest rate and stop complaining then. I see that your a mother, maybe this is a step for your childs’ future education, so that your child isn’t limited to how deep you and your husband can dig into your pockets. This will give your child a fighting chance to compete in whatever it is your child wants to be, so stop being so bitter about your financial situation, and celebrate for the future of your country.

Teacher Reader

October 26th, 2011
8:40 pm

I am not complaining. When I graduated with my Masters degree (1995), 8.5 % was a very good interest rate and once you consulate your loans, you can’t do it again. I am not complaining about my $30.000 of education debt or interest rate. I make every payment on time and try to pay more than I owe each month to get the debt down. I signed the loans and should pay them off, even if they take 20 years to pay off.

The kids who are graduating also signed their loans, made choices of where to attend college and knew the cost wasn’t going to go down. What did they do to defer the cost? Why should my tax dollars be used to pay for another’s college degree? Going to college is not a right. It’s your responsibility to pay if you make the choice to attend. It seems that we continue to forget the difference between rights, responsibilities, choices and consequences.

I do begrudge having to pay for someone else’s college education, as it’s not the government’s job to pay for your education. Paying for college is your responsibility, especially if you get a degree that is not likely to lead to a job. As I have told my son, poetry, English Lit, Woman’s Studies, African American Studies, History, and any other degree that is not likely to lead to a job is not being paid for by me, he is on his own. My husband and I have worked hard for our money and don’t gamble our money and effort on a degree that probably won’t pan out to much. We have been saving for our son’s college education as best we can from the day he was conceived. We did not have more children than we could afford, as we expect no one to take care of him.

Our country’s future does not depend on how many people get college degrees. Most jobs really don’t require a college degree to perform. As I stated, college degrees are the new high school degree, and students are getting screwed with debt from the universities with the 8 and 9 percent increases each year. I see kids wanting a free college education, but aren’t willing to get a job and pay for it themselves. No one is owed a college degree. I am a firm believer that if you pay for it, you respect it more. If we give everyone a college degree, than what will they want next. Will be giving everyone a free McMansion? A Mercedes? A vacation around the world? When does it end?

Unfair

October 26th, 2011
10:30 pm

So, those of us who paid our debts by working during college, who ate ramen noodles instead of pizza, who dressed within our means and didn’t party,…should have borrowed money and gone into debt instead of paying our own way so we could “default” on our loans and let the government pay them instead?! How is that teaching fiscal responsibility?

dentist

October 26th, 2011
10:31 pm

I am a dentist, i graduated 10 yrs back and i am still looking to pay this 300,000 student loan. well let me tell u, there is no shortage of dentist. and with all the job loss and insurance loss there is very little income for me to live on or pay my student loan. I see my mexican friends who come in and do construction jobs, they dont pay malpractice insurance, licensure fees and dont hold a DEA license. My gosh they are living the life. they have money in their poket and are happy as they can be. then i see my indian friends who got a free eduction in india and are welcomed to come to usa and get paid to finish a higher education in this country and go on to get the same jobs that we are all competing for and they get the job and now they are living the american dream and not worry about a dime in student loan. the third world countries are doing such a better job of educating their citizens to be competing in the world market and at the same time we are here fighting to pay the student loans and taxes and worry about how am i suppose to make the nexr MEAL for my family. no wonder we have so much craziness around. look into the other countries and see how they are ready to flood the system and win. we are so held back that we can not compete and we are a paralized nation. we are no where ready to compete with no one. this education is not worth a penny. i know alot about teeth and human body but I have the same anxieties of everyone else. i thought higher education will set u free. I will be sending my kids to Romania or even India, cost is a lot less and yes they will learn and with the american passport they dont have to worry about J-1 visa and they can make their dicision and yes they will be exposed to a different culture and they will be divesified in person. as for me, hoperully in 20 years from now i will see the remaining balance of ZERO on my student loan statement.

Really?

October 26th, 2011
11:00 pm

Is that 10 percent of gross income?

Teacher Reader

October 26th, 2011
11:07 pm

Dentist, sounds like you should have done more research before taking on $300,000 in loan debt. Going into that much debt was your choice, why should it be wiped out because you made your choice? Why should my tax dollars go to pay off the loan that you decided to take out to pursue your dreams?

If you want to live in a socialist society, than I think your should go there to live. We are a Republic and each person has rights and responsibilities. You have a right to pursue happiness, not to be happy. You have a right to pursue being rich, but not guaranteed that you will be rich no matter what profession you decided to take on.

Indians that come here and attend grad school usually have higher scores on GRE and other standardized tests. They have better skills than their American counter parts. My husband is a college professor and would love to have more Americans in the PhD program. The problem is that the American scores are significantly lower and they do not have the analytical skills to do the work.

Higher education has made no promises to set anyone free or get them a job. I believe that students who go to college need to do their due diligence before taking out a student loan and seeing if the degree that they are pursuing and the cost of the university make sense with the potential salaries that one could make upon graduating. That’s what a smart business man does before opening a business. When you go to college you’re investing in yourself. I don’t want to pay to invest you. You might not be a good investment. My tax dollars are paying for people who made poor decisions. Get over yourself and suck it up.

td

October 26th, 2011
11:09 pm

Teacher Reader

October 26th, 2011
8:40 pm

Very well said and I totally agree. I did not start college until my mid 20’s. It took me 7 years going part time to attain a Bachelors. I paid every penny as I went to school. If I did not have the money to take two or three classes then I only took one and saved more money that quarter. These kids today receive do not even work and I worked two or more part time jobs at a time, at beans and rice, did not date or party and went to school.

bessbear

October 26th, 2011
11:24 pm

I heard “10% of discretionary income”. Who decides what that is? Is there a formula? If I buy a house that is too expensive for my income, does that lead to me having less discretionary income to spend on my student loan.

I also heard that after 20 years, whatever you have not paid off is forgiven? Sorry, but if someone decides to go to a school that is overpriced, in a degree that will not lead to a good job, then they need to pay for their own mistakes in life.

This is reminding me of when President Clinton gave a speech declaring that all people should be able to be homeowners. I knew then that would be a huge mistake, and I have that same feeling about this.

Glen

October 26th, 2011
11:27 pm

The best solution is to NOT take out a student and to attend college where you can afford to pay for it. I guess that makes too much sense for some people.

Hacked off!

October 26th, 2011
11:27 pm

What a joke. Government gurantees loans for students. Students borrow more than they can ever pay back. Pay 10 percent of earnings at max. to pay it back. Capped after 20 years no matter how much is still owed. Taxpayers get stuck with the tab. Government has already committed over 70 trillion in outlays! We’re 15 trillion in the hole right now! College costs increase and runaway because there is influx of money from loans with no free market system. Where is all this money supposed to come from?

Glen

October 26th, 2011
11:28 pm

Enter your comments here

Happy Student

October 26th, 2011
11:33 pm

Shoot, I think this is the best news to be released this year. I’LL TAKE IT!

Maureen Downey

October 26th, 2011
11:41 pm

@bess, From NYT:

Q. Who is eligible for these income-based repayment plans in the first place?

A. Eligibility is based on something known as “discretionary” income, which the federal government defines as anything above 150 percent of the poverty level. The poverty level depends on your state and the size of your family. The big idea here is to only allow people to qualify whose income makes it hard to afford their full federal student loan payments. (Private loans do not factor into income-based repayment.)

All of this is outlined in plain English on IBRinfo.org, a Web site maintained by a nonprofit group called the Project on Student Debt. Your lender or the company servicing your loan will decide whether you’re eligible.

Drew

October 26th, 2011
11:41 pm

To the teacher claiming that students should consider their major, earning potential etc. Schools lie to students about what the earning potential will be. The US News and World Report does as well. I was told that I would get $75k easy out of college with my masters degree – I was told that my field was in high demand and was one of the fastest growing in the country. I was told my faculty, school administrators, national publications and so on. The fact is, less than half of my graduating class can even find a job, and that there is no real demand for my field. The lucky people are making 40k, the lucky ones. I raked up $75k in loans under the impression that I would make that in a year, that i could continue a low standard of living until they are paid off and be debt free within two years. I was lied to, and now Im paying the price.

And please explain to me this Miss “Teacher”… WHY SHOULDNT THE GOVERNMENT HELP US WITH AN INTEREST RATE WHEN IT GIVES HUNDREDS OF BILLIONS TO THE BIG BANKS BECAUSE THEY FAILED OUR COUNTRY!!! We have been working our butts off to get our degrees and make a difference. We have paid our due diligence and we are working hard. Yet you would prefer the big lazy greedy banks to get hundreds of billions in free money for screwing this country, rather than an interest rate deduction for those of us who are working our asses off to make a living?

Shame on these IGNORANT comments.

xxx

October 26th, 2011
11:52 pm

BOO HOO Drew. You should probably head down to the park so you can get those drumming and chanting credits.

UHMHaumana

October 27th, 2011
12:01 am

This is great! A lot of people are saying, “College students should just weigh everything out and accept the consequences.” But, without the extended option to pay off loans over time, some people who come from poor families will find that an 8 year program to become a doctor is unattainable. What’s worse is, that same student, discouraged by his debt may decide half way through that this career is not for him/her and but be forced to continue, in vain, setting themselves up for years of debt in a career they hate. From a human resource standpoint, businesses and services want people who are the right fit. From an education standpoint, we want people to be prepared for their lines of work. From a human standpoint, this is a necessary option. I believe, if you think loans should be paid off sooner, then organize your finances and pay them off sooner! No one is saying this is going to force everyone to pay NO MORE than what they owe. But, this is a good cushion.

[...] Atlanta Journal Constitution (blog) [...]

Jacksmum

October 27th, 2011
12:12 am

What a joke…wish my grandpa was here to say, “there is no such thing as a free lunch”. Of course considering the education most Americans are getting these days, it wouldn’t be understood.

I suppose those of us who paid off our educational loans, pay our insurances, payroll, mortgages, have emergency accounts and save for our retirement will have to stuff it to provide for the up and comers. Cause they have a right to own a house, have a well paying job without paying their dues, free education and free healthcare. OWS protesters, please keep up the fiddling, Rome will continue to burn.

It can be done

October 27th, 2011
12:18 am

I got a degree in history from a very prestigious public college and racked up about 35,000 in debt. I landed a 50,000k a year job out of college and paid off my loans in five years. It can be done, especially if you avoid having children and buying that brand new BMW for a few years. I am all for any program that lowers the interest rate for these loans. The banks make so much money off the business that is modern college costs. Further, there is no such thing as a useless degree and those who use this argument are usually not very good at marketing themselves. A college degree is just a portion of the package that you will present to employers, and your major does not limit the things that you can do. I know plenty of liberal arts majors who work in finance, engineers who work in marketing, and etc. You have to be willing to branch out and get a new education by working jobs outside of what you studied. That is why liberal arts is so great as it allows you to be a broad candidate that can work in many different fields.

Jacksmum

October 27th, 2011
12:20 am

I suppose my husband could have chosen not to complete two degrees plus a medical degree because he was poor. Instead, he worked three part-time jobs and earned his opportunities. He then went on to become a very successful doctor and businessman. He is successful because he worked hard for every opportunity. If you don’t want it badly enough to pay for it, whatever it takes, you won’t be successful no matter how many entitlements you are given.

[...] Atlanta Journal Constitution (blog) [...]

Rick in Grayson

October 27th, 2011
12:28 am

Teacher Reader has it right!

The government should not be picking up the tab (and the taxpayers will with Obama’s plan) for those who have buyer’s remorse. Check out the signature on the LOAN papers…if you can recognize it as your own then pay it back. That was the promise you made!

Maybe a college education today is a gamble and those who choose basket weaving as a major have picked the wrong game to play. Engineering majors are doing better than most, why didn’t you choose that field and compete with all the foreign nationals that come to the US to take those jobs?

Ask your elected officials why foreign nationals are allowed to enter the US and take jobs that US citizens could be performing.

Ask your elected officials why our immigration laws are not enforced and we pay $150 Billion each year to subsidize foreign nationals in our country illegally. Why some even are subsidizing the college educations of these illegals and the children of illegals.

Seems like home owners are wanting bailouts on their underwater mortgages and the government can take from responsible citizens to give to the irresponsible.

Just like our current education system that gives “do-overs” for those that don’t get the grade they want on a test. How can students raised under that system ever feel responsible for their own actions?

Rick in Grayson

October 27th, 2011
12:34 am

If you vote for Obama, you are voting for continuing deficits for the US. You may think you are a winner now, but look at Greece…that will be our future…and it won’t be that far down the road.

uhh

October 27th, 2011
12:46 am

Rick and Teacher Reader you do realize that to pay 10 percent of your income for 20 years and still have a loan left you would have to have been in debt for well over 6 figures. For example, the average college student making 45,000 a year would pay off a 30K debt, ignoring interest, in a little over 6 and a half years. This is not going to make the tax payers pick up the “tabs” of everyone’s college education. It will help the average student get lower rates at no cost to the taxpayer and lessen the burden on those who have taken the law school or medical school gamble and lost. Its ridiculous that a bank can expect a recent law graduate making $20 per hour as a temp to make a 2000 dollar a month payment. Law schools should pay some of these loans as they lie to many people about hiring rate and placement after graduation…ie the brochure may say 96 percent are employed by graduation but they dont mention that 50 percent of them are hourly temp or clerk jobs. Its also important to remember that once some of these law and medical folks get better and higher paying jobs they will be able to make bigger payments. They should be able to pay off most if not all loans in 20 years unless they have no job are extremely underemployed during their entire career. You guys are unbelievable…this program wont cost the taxpayer and will help people who need it after they bought the educational lies that are perpetuated in our society.

a great move

October 27th, 2011
12:52 am

This program is designed to protect the people from the banks. Education is a big business and the consumers should be protected from improper business practices like other industries.

Reluctant Student

October 27th, 2011
12:55 am

Checks and balances people. Isn’t this how it is supposed to be? Sadly though there seems to be no checks in place for the price of higher education and it seems to be out of reach for many. Many schools are built on corporate models intended to get people in and out as quickly as possible. That is as long as the checks keep coming in, which do, since most of them come from the government. I speak from experience. I am in pharmacy school and by the time I am done i will be an incredible 200k+ in debt. These schools base their tuition on what graduates earn on average, not necessarily the quality of education they are providing. I can’t say the school I go to is worth a fraction of what I am paying for. Perhaps what amazes me the most is America’s timidness to the inflated cost of education. In Paris (where students do not pay for higher education), there are riots in the streets when they raise the prices of books a few euros. Here they raise tuition 3-5% annually and no one does anything.

Dr. Craig Spinks/ Georgians for Educational Excellence

October 27th, 2011
3:50 am

The USDOE’s IG should audit the various student loan/grant programs as well as the schools which receive proceeds therefrom.

Better yet, a newspaper consortium should do so.

C from Marietta

October 27th, 2011
4:22 am

This is total BS. What about the people that actually PAY their bills? Aren’t they important as well? Your taking a risk by going to college. Just b/c you earn a degree doesn’t guarntee anything. There are NO guarntees in life. What a bunch of spoiled little kids this country has become. Just throw a temper tantrum and you get what you want. BTW… I worked my way through school and have NO debt. Did’nt have debt when I graduated. I worked 30 hours a week at UPS and 15 more delievering pizzas. While taking a full load in Computer Science. Yeah, so I got a degree that is in demand. I didn’t smoke pot and take liberal arts.

C from Marietta

October 27th, 2011
4:26 am

@It can be done

In today’s market you can’t just get any degree. 15 to 20 years ago YES, but now you have to graduate with a specific skill. If you believe a liberal arts degree will get you an engineering job. You are sadly mistaken. Liberals Arts = waiting tables if you lucky. As a matter of face, my company doesn’t even look at liberal arts majors. It shows us the student was lazy and took the easy way out.

Jshortie

October 27th, 2011
4:37 am

What a web we spin! Our government has our children in schools that are inadequate for meeting the education standards to compete in this job market. U.S. schools are deficient compared to other countries. The wealthy are the one’s who for the most part advocate a system of vouchers so that they can get their tax money to send their kids to schools most of us could never afford. It’s easy for the wealthy to send their kids to private schools getting them the best education possible. You can bet your sweet bippie that the majority of these students are not the men and women who fight our countries battles in the armed forces! How many soldiers have died in the name of their country that come from the middle and lower class of society? I would love to see those numbers, you can bet the wealthy won’t be in that equation. China, Japan, and countless other countries are blowing our “tattered socks” off with their system of education because they put their money into their people, and we don’t! We used to be a great country that could put our young peoples minds up against most any other country, not anymore! The current system of politics has run us aground to the very precipice of failure. Just look at the state of our country and how it is being driven into an oligarchy form of government, separating the very wealthy from the rest of us poor slobs. The 1% versus the 99%…..sound familiar.

Corporations and those who support them, have sent this country into the imbalance that we are seeing today in our present state of economy, education, jobs, bailouts to banks and wallstreet, housing, cost of consumer goods and the failing currency on the world stage. I know who you are and you know who you are. Now it’s just a matter of time before the 99% you see as peacefully occupying our cities will turn the tide back to the people who have the real power. Our money lost on the inflated “Prime Housing Market” and the mass # of foreclosures, our taxpayer bailouts of the banks, auto dealerships, Wall Street firms, jobs shipped offshore for cheap labor to maximize profits, huge salaries and yearly bonuses to corporate executives and etc. etc.. I can say that this gross imbalance will be rectified and sooner rather than later. The 1% can’t be allowed to control the 99%, it just won’t be allowed to happen. I am angry and so are the rest of the 99%. Tea partiers, step aside, the real reform party is making their voices heard!

C from Marietta

October 27th, 2011
4:39 am

It ends when we end up like Greece. It has become apparent to me that President Obama has successfully conned 45% of this country (maybe more). If he wins the next election. We will go the way of Greece and Italy. If he wins the next election. I am willling to bet. It will be the last president we elect. Shoot, we already have groups supporting President Obama saying it’s already bad enough to suspend elections. You may laugh, but it has happened in the past. DON’T think it can’t happen here, because it can.

C from Marietta

October 27th, 2011
4:44 am

@ Jshortie

LOL. Have you been to China? I have and MOST of the people live in tin shacks. MOST of the country is cheap labor. Why do you think our factories are all in China, b/c they are well educated? Japan, well they have been in a recession since 1991. They tried to spend their way out of it. Hasn’t worked for them. Reason for the foreclosures in this country. Folks getting loans. They can’t afford. Look at your boy Barney Frank. He is one of the reasons for the banking failures. Please pull your head of the sand and stop parroting this 1% – 99% BS.

C from Marietta

October 27th, 2011
4:47 am

Inflated Prime Housing Market. LOL. Housing Market is in the toilet, b/c it was over valued. Way? Again, folks getting houses they could’nt afford and it’s the banks fault? How about taking responsiblity for your actions. 99% it’s more 20% idiots that think they are entitled to someone’s hard work.

C from Marietta

October 27th, 2011
4:52 am

@ Rick in Grayson

and Teacher Reader.

I take comfort in the fact that you get it. Let’s hope we are not the minority. This entitlement crap has to end.

Jshortie

October 27th, 2011
5:08 am

to: C from Marietta

Yes, I know that China has poor people living in tin shacks, are you kidding me? What do you expect from a country that has 1.4 billion people, that they would all be living in palace’s and mansions? Duh! The corporations here have dummy-downed this country to the point where we are debtors to China! Gee, I wonder who won on that count! C from Marietta, I don’t know where you have been, but the whole world is in recession in the event you haven’t looked lately. Our foreclosures are due more to the money hungry banks and mortgage companies allowing inflated housing values while there were no government regulations to make them accountable before loans were issued to people before the market correction showed housing values that were upside-down. Stop this Barney Frank nonsense, one man does not make a system wrought with failures. One thing you can be sure of is that Obama was handed one hell of a mess from the git-go. No wonder John McCain put himself into the worst position possible so as to not win the presidency. Pick Palin as a running mate, then step aside for Obama to take the Presidency and the fall for the Republicans.

[...] Atlanta Journal Constitution (blog) [...]

[...] Atlanta Journal Constitution (blog) [...]

Dr NO / Mr Sunshine

October 27th, 2011
7:48 am

Nothing like a little early campaigning attempting to lure in these young college grads. Hopefully they will see thru this latest “smoke and mirrors.”

He’s an idiot and Duncan too.

Atlanta Media Guy

October 27th, 2011
7:54 am

Government employees, also known as professors, at the state schools have had plenty of pay raises over the years as well as cuts. Budget cutting by the states and these union based employees at the universities have forced the schools to raise tuition and other costs. But of course it’s the taxpayers fault and we must pay these teachers more! Please, everyone is having to tighten our belts through this government induced recession. Obama spends like a drunken sailor. Did you see the story this morning about the prison nurse in California who made over $250,000 dollars thanks to overtime? She was the top employee in California working overtime this past year. This is where the whole nation is headed if Obama wins another 4 years. The spending has got to stop or we will see an American Spring of angry taxpayers.

Teacher Reader

October 27th, 2011
7:56 am

@ Uhh if you ask me 10% is too low. It should be more. No reason why a college grad should have to rent a fancy apartment, drive a new car, go out clubbing, and have kids if they can’t afford them. Life is about choices. People made choices to take out astronomical amounts of student loans. That was their choice. I don’t want to pay for it.

My house is at least $70,000 under water, not counting the $40,000 of renovations that we did to . I am not asking for a bailout or not paying my mortgage. We signed the loan and it is our responsibility.

Our country has such a sense of entitlement. Our kids grow up where everyone receives a trophy. This is not reality. Our kids have no idea on how to work hard to obtain things that they want. Few starts out with a McMansion, a BMW, and a pool. Most have to work their way up to that with hard work and sometimes have several jobs to get where they want to be in life.

Dr NO / Mr Sunshine

October 27th, 2011
7:56 am

Obamas problem is he, like Ted Kennedy, doesnt want to be President. He just doesnt want anyone else being President. Obamas place is with the OccupyWhatever clowns parading around in jester outfits and making complete fools of themselves.

Yes!

Teacher Reader

October 27th, 2011
8:00 am

@ Drew YOU didn’t do the research, you relied on the school to tell you what the outcome would be. It’s like trusting a used car sales man when he tells you that the car you’re looking at is sound and you not taking it to a mechanic to get it checked out. If you haven’t gathered yet the media doesn’t care about you, as they aren’t reporting the truth about many things that are happening in our country.

Dr NO / Mr Sunshine

October 27th, 2011
8:04 am

Drew

October 26th, 2011
11:41 pm

…And does you mommy still change your diaper?

Dr NO / Mr Sunshine

October 27th, 2011
8:09 am

carlosgvv

October 26th, 2011
5:30 pm

It wont work. Basic economic fundamentals will illustrate that. The Community Organizer n Chief is just grasping at straws, anything to keep from being evicted from his posh estate in DC.

The only thing that will be missed about Obama is the VP. Biden comedic value and just sheer stupidity is irreplacable.

Teacher Reader

October 27th, 2011
8:22 am

@ Jshortie

The housing problem is due to the government forcing banks to make loans that they knew people could not afford. Look up Barney Frank and Mr. Dodd. The government, the bank, and the person signing the loan are all to blame. I know too many people all over the country who were able to buy homes that were way beyond their means and they went ahead and did it. They didn’t use their brains to make wise decisions.

I remember when my husband and I were told how much we qualified for a loan and laughed as we knew we’d be house poor and we wanted to have a family, savings, and not live in fear about not getting a pay check. The people at my husband’s job all live in bigger homes that cost way more than my own, but I have money in the bank, paid off cars, and am able to stay home with my son, because we lived well below our means. Others should try it!

student

October 27th, 2011
8:58 am

I think this is great, especially in the wake of the changes made to the HOPE Scholarship.