0 Comments · Wednesday, June 11, 2014
Millions of student debtors now qualify to use “Pay as You
Earn” to repay their loans after President Obama signed an executive
order June 9. Debtors won’t have to pay more than 10 percent of monthly
incomes, and after 20 years anything left is forgiven.
0 Comments · Wednesday, June 11, 2014
At a time when charges for borrowing
money have hit nearly historic lows, students and those currently
repaying federal student loans have been locked into older, higher
by Rachel Podnar
at 01:45 PM | Permalink
New bill would save students and government money, but tax those with big bucks
something that homeowners, business and local governments can do that college
from buying alcohol, everyone else can refinance loans for lower interest rates. But at
a time when charges for borrowing money have hit nearly historic lows, students have been
locked into their older, higher rates. A new bill looks to remedy that and promises to not only pay for itself, but cut government spending.So,
students, graduates and budget hawks are happy, and everybody wins.
tricky part — paying for the program — is something called the
Fair Share Tax. The reduction in spending would come from the second part of the bill.
called “The Buffet Rule,” named after Warren Buffet and championed by Elizabeth
Warren, the tax mandates a minimum rate of 30 percent on those who bring in a
million dollars or more a year.
students loans without a refinancing option is a profitable business — the
government is set to take in $66 billion on interest alone from loans issued
between 2007-2013, according to the Government Accountability Office. Eliminating that money would have big budget implications. That's where the Fair Share Tax comes in.The
Banking on Students Emergency Loan Refinancing Act would allow those with
loans issued before August 9 last year to refinance at the rates passed in 2013 — 3.8 percent
for undergraduate loans.
including Sen. Sherrod Brown, are trying to gather support for the bill. Brown filed the bill with Massachusetts Sen. Elizabeth Warren.
Warren introduced the bill in the Senate on May 5. She, Brown and other Democrats will be pushing it in the
“Every dollar a current borrower pays
in interest is a dollar he or she can’t spend on a car, on a mortgage, or on
starting a small business,” Brown said in an email sent out on Thursday requesting signatures to support the bill.
So far, 36 senators have signed it.
year, Congress lowered the rate of new loans but left existing rates the
Those higher rates are drowning graduates, keeping them stuck in their parents' basements, Warren said on the Senate floor last month. “Make no mistake, this is an
emergency,” she said. “Student loan debt is exploding and it threatens the
stability of young people and the future of our economy.”
The Congressional Budget Office released a report on the bill Wednesday. The report found that lowering
the rates of outstanding loans would increase spending by $51 billion, but with the new tax thrown in, the bill would also
increase revenue by $72 billion between 2015-2019.
report said deficits could be reduced in the next 10 years by about $22
billion. Congressional Republicans are sure to oppose the tax increase, considering most have signed
Americans for Tax Reform’s taxpayer protection pledge to not raise taxes.
won’t be the first time congressional Republicans have opposed the proposed
tax. It was introduced in 2012 as the Paying a Fair Share Act and fell short of
the votes needed to leave the Senate.
the meantime, student loan debt totals $1.2 trillion, greater than all
outstanding credit card debt.
Congress’ latest student loan fix is no long-term answer
1 Comment · Wednesday, July 11, 2012
Student debt in this country has
surpassed the trillion-dollar mark — exceeding even total credit card
debt — and is still climbing. And a lot of it is owed by English and
philosophy majors now working as baristas or not at all.
0 Comments · Wednesday, April 25, 2012
For participants in cannabis culture, 4/20, 420, or 4:20 is Christmas, July 4th and Thanksgiving wrapped into one. The annual date has evolved from being message board material and a secret stoner code to something much more widespread.
0 Comments · Wednesday, April 6, 2011
Anyone who frequents the downtown business district knows that certain local celebrations guarantee a less-than-diverse collection of visitors to our fair city (try yelling “Go back to Mason!” to random people at Opening Day, Taste of Cincinnati or Oktoberfest and you’ll be surprised at how many people think you know them).