A'nold wrote:What if you took out UG loans before 2008 but you will take out a "new loan" next year? Does that mean that all of your loans b/w 2008 and 2012 will qualify?
I don't think they're covered. To be eligible for the "new" benefit a borrower needs to take out a loan in 2012 or later; then, for that borrower, it covers loans taken out from 2008 onward. Current 3Ls receive no benefit. Neither do current college seniors, recent graduates, etc.
As others have said, it's political posturing. Though, to be fair to Obama, this may be the most radical change he can make on his own without congressional action.
1. Does nothing to address rising tuition rates because loans are all still federally guaranteed/nondischargeable.
2. Does nothing to slow the student debt bubble from ballooning further.
3. Does nothing to help the high numbers of currently unemployed recent college, LS, etc. graduates.
4. Does nothing to help out the soon-to-be unemployed graduates next May.
5. Does nothing to solve the end-of-payment tax problem that accompanies 20/25-term IBR plans. In fact, makes it worse.