Black People Politics : Student loan rate extension passed under threat of veto

Discussion in 'Black People Politics' started by Clyde C Coger Jr, Apr 27, 2012.

  1. Clyde C Coger Jr

    Clyde C Coger Jr going above and beyond PREMIUM MEMBER

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    In the Spirit of Sankofa,




    .......Pressure from the President, Mr. Barack Obama...


    [​IMG]
    Student loan rate extension passed under threat of veto

    The House on Friday passed a Republican version of a bill that would extend the low 3.4 percent rate on government-subsidized student loans, despite pressure from conservative groups to oppose the measure and a veto threat from the White House.

    http://news.yahoo.com/blogs/ticket/...nsion-passed-under-threat-veto-171547048.html


    Obama would veto Republican student loan bill, says White House

    Obama criss-crossed the country this week in support of legislation that would keep more money in the pockets of cash-strapped college students. Republicans initially resisted the idea, but Mitt Romney quickly moved to neutralize the issue as a political weapon by embracing it in principle. House Republicans adapted by finding a clever "pay-for" solution to defray the cost of the legislation (lower interest rates = lower payments = lower revenue for the government). They chose the Prevention and Public Health Fund included in what all sides have now agreed to call "Obamacare," which Republicans have vowed to repeal.
    http://news.yahoo.com/blogs/ticket/obama-veto-republican-student-loan-bill-says-white-160233278.html

    Peace In,

     
  2. Clyde C Coger Jr

    Clyde C Coger Jr going above and beyond PREMIUM MEMBER

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    In the Spirit of Sankofa,





    ........A better understanding of student debt and its connection with the national debt, and obviously, the economy's recovery:


    A guide to student loans
    By KIMBERLY HEFLING, AP Education Writer – 3 days ago
    WASHINGTON (AP) — President Barack Obama and his likely GOP opponent, Mitt Romney, agree on an issue of importance to college students: Keeping the interest rate low on a popular federally subsidized student loan issued to low-and middle-income students.
    The interest rate is scheduled to double on July 1 from 3.4 percent to 6.8 percent on subsidized Stafford loans unless Congress acts. About 7 million undergraduates would be affected, raising costs by an average of $1,000 each, according to the White House.
    Q: How big of a problem is student loan debt?
    A: U.S. student loan debt has surpassed credit card and auto-loan debt, with some estimates putting it at $1 trillion. This debt jeopardizes the fragile recovery and increases the burden on taxpayers.
    http://www.google.com/hostednews/ap...dYnC4A?docId=158633047edc4af08c09f6aa90e01fae

    Peace In,
     
  3. Shikamaru

    Shikamaru Well-Known Member MEMBER

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    I am unsure if this is correct.

    Let's use the rule of 72 for this example.
    Let's round 3.4 down to 3.
    Let's round 6.8 up to 7

    Dividing 72 by 3 yields 24.
    Dividing 72 by 7 yields approximately 10.2.

    School debt interest compounds.

    At 3%, the debt doubles every 24 years.
    At 7%, the debt doubles every 10 years.

    3% and 7% are Annual Percentage Rates (APR).
    The Annual Percentage Yield (APY) of both will be a bit higher due to compounding interest.

    Furthermore, school debt is amortized with the bulk of one's monthly payment settling the interest first and the principal amount later as the end of the loan approaches.

    This ensures the banker gets his profits first.

    Taking into account the aggregate of student loans as well as the increase in the number of student loans that are in trouble, I say the figure of $1000 on average is greater.
     
  4. Clyde C Coger Jr

    Clyde C Coger Jr going above and beyond PREMIUM MEMBER

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    In the Spirit of Sankofa,






    .......Perhaps, but in all fairness to the report, given in generalities, which states costs are to rise "on an average" and "about" to the total number of affected students; from which there is no great disparity in comparison to your general calculations: "I say the figure of $1000 on average is greater."


    Further, on negative amortization, there's this:


    And this:


    And then the report offers other critical considerations...




    But by all means Shikamaru, be welcomed to assist the Government in sorting out this problem. At the end of the day, its a good thing, in my book, President Obama used his veto power to get the House(GOP) to maintain low interest rates.

    Peace In,
     
  5. Shikamaru

    Shikamaru Well-Known Member MEMBER

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    All the assistance they shall be receiving from me is the paying of my school debt off in its entirety before the close of this year never to fall for the trap of borrowing money for college ever again.

    Staying away from debts that can't be discharged out through bankruptcy is the lesson learned from paying that "tuition".
     
  6. Clyde C Coger Jr

    Clyde C Coger Jr going above and beyond PREMIUM MEMBER

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    In the Spirit of Sankofa,




    .......lol, so is it safe to say you applaud the President's efforts in this case?


    Peace In,


     
  7. Shikamaru

    Shikamaru Well-Known Member MEMBER

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    What they do or fail to do won't matter to me since it won't apply to me.
     
  8. Clyde C Coger Jr

    Clyde C Coger Jr going above and beyond PREMIUM MEMBER

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    In the Spirit of Sankofa,




    .......True... Just thought you had some concern for those that will be affected by the President's actions.


    Peace In,
     
  9. Shikamaru

    Shikamaru Well-Known Member MEMBER

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    Not really. Can't really worry about the folly of others.
    People will learn the hard way about the bondage of debt.

    Most learn by experience, some learn by revelation.

    Nothing wrong with learning by experience, but it can be a god awful hard way to learn.
     
  10. Clyde C Coger Jr

    Clyde C Coger Jr going above and beyond PREMIUM MEMBER

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    In the Spirit of Sankofa,




    .......I see.


    Peace In,

     
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