Learn What Obama's Student Loan Plan Means for You

Bottom line is, if you graduated from college within the last 5-10yrs, you're on your own in every possible way. I'm not complaining, but that's reality and it makes me sad for new grads that paid there own way.

You mention these programs and changes that essentially apply to nearly no one. You really think a .25 discounted rate offsets tuitons doubling the last decade? The Fed cut funding to the states and schools, they in turn increased tuition even more. The loan forgiveness programs are laughable, considering most loan terms are 20yrs or less anyway, including my Fed consolidated loans. And that income based repayment is really something else too, essentially if you make 50,000 annually you get no help, or at least not to any extent when you own a home and don't have 10-15% of the 50k laying around, so start looking for a second job....

And I cannot even fathom what the defaults cost taxpayers (including the ones struggling to pay their loans and not default) considering the Fed sells defaults to contracted collection groups for pennies on the dollar.

No disrepect to the blogger here, but this all smoke & mirrors, and it will only get worse until something prevents these sham online programs from duping people. I've read up to 40% of students using financial aid to pay for such programs default on their loans, which is unbelieveable. And people wonder why you have 20-something years olds that give up hope, lose themselves and go on shooting rampages.

It's really just sad to think Education is such a joke now that I have an MBA with honors and if I had a 18yr kid, I'd be advising him to try to get into a union, read books on his own and start his own business. But hey what do I know, let's focus on trying to fix health insurance for another couple years or so....

Ziggy of PA 3:16PM August 13, 2012

where do people go with loans that started at 50,000 and gain 82,000. in interest and no where to turn. It has caused me so much stressed it costs me a terrible divorce, loss of my home , and multiple health issues caused by stress. Ive been teaching 18 years in SC and still only make 52,000.

My first paycheck was only 1800. a month the repayment of school loans was 600. a month. my ex husband was unemployed and i had two children.

I tried to find out for 2 years after about how and why my loans were so much but never got any info. I was told from the college the records went into a "file" that after 6 months of graduating was put into a vault and they were not required to give me any info..????sounded shady.

I have spent numerous years on the phone trying to find a way to pull myself out with all the bills as a single mother trying to pay basic bills it has been a horrifying circle and i will forever be struggling .I sometimes feel suicidle since that seems to be the only way these loans will ever go away. unfortunetly i will be 79 years old before obamas plan would help me though for the young it would be better. please let me know if there is a better way than IBR 2012 or even Obama's 2014

robin goin of SC 5:50PM August 05, 2012

F U !!! how bout the one's of us that lost jobs....took over a year to find a new job...only now to be penalized with HUGE fees from collectors, hounding us now for every penny we make....to repay SALLIE !! KUDOS to oboma for taking care of those NOT HAVING BORROWED YET...how bout those of us in need NOW...with loans going into collection with threats of TAKING DIRECTLY FROM OUR EMPLOYER !! WTF....how dare you insult us with plans to help those not borrowing yet and why nt take better care of those that have lost jobs due to your poor management of this country....i tell everyone that asks me now...to hell with college and grad school...go find a trade and master that...else you'll be paying out your rear-end for the rest of your lifetime..not worth it

JABBERWOCKY of AL 7:59PM June 07, 2012

There is nothing new about these programs. They are the same as the FFELP loans. The only thing that I can see that the Government faid to mention, is that there were thousands of people that lost their jobs because of this direct loan program and doing away with FFELP loans. Oh and lets see the GOP is tring to stop Obama from raising interest rates but he vetoed that and won't tell anyone that he is trying to raise interest rates on federal student loans.

Diane of FL 12:01PM April 28, 2012