Learn What Obama's Student Loan Plan Means for You

so far this is all farce.

Upon calling 1-800-4-FED-AID on 2/12/2012 no one there (even the supervisors) has even heard of this legislation.

THERE IS NO CURRENT WAY TO APPLY.

does anyone know when this will actually begin?

loanowner of CO 4:43PM February 12, 2012

A Big Letdown.

My wife and I were hoping for a better life when I honorably discharged from service and got accepted to college. After she and I graduated, we both were stuck with nearly 300K in school loans that we AGREED to pay off. I'm not arguing that we don't deserve to walk away from the loans scott-free, but in the 5 years since we've graduated, I'm in a job that pays $3,000 more per year than what I was making in the military, and she's an elementary school teacher, so guess what her paycheck looks like. I was better off not going to college, and the G.I. Bill wasn't as favorable to me as it is now with its recent changes. I never wanted a bailout, just a better paying job. But as every other industry has been given a handout with the bailouts, the backbone of this country watches businesses thrive while jobs opportunities become less, and for us reading this article....the loans get worse and start to tip into the "critical mass" stage. As of now, we've defaulted on 1/3 of our loans, and all of our income goes to slow down the deterioration....but not stop it.

Obama's plan looks like it helps the recently graduated.....the ones who haven't struggled and sold off nearly everything they own just to stay somewhat afloat for one more month....who see the edge of the waterfall and can't paddle to the side of safety. They may not have jobs waiting for them after graduation, but they have options .... and this plan, albeit not the best, is better than what we have.

To all who are reading this, I know what you're feeling; my wife just got another letter saying she's defaulted on another loan, and Sallie Mae is saying I will default at the end of this month on a few of my loans. Aside from praying to God, there is one thing that keeps me smiling and sleeping at night: the boss of our company, who just passed away, was a self-made millionaire who lost all his money in the Texas oil business. When I asked him how he got through it with creditors coming after him, he said, "No matter how bad it was, I always told myself, 'They can't eat me.'" That man went to the grave smiling, never letting ghosts from his past ruin his "today". Keep your heads up, and focus on your today. Today is all you have. Don't wait for the government to fix our mess; they're in over their heads by 14 trillion dollars. They can't even clean up their own mess. Don't expect them to clean up yours.

But, as long as they're slinging bailouts to the housing industry, banking & mortgage, and manufacturing, keep screaming for your share. Even as a republican, there's nothing wrong to ask for your share when EVERYONE ELSE is getting one. Good luck to all of you in this mess. Remember, they can't eat you.

williamfelsberg of TX 7:41PM February 07, 2012

I graduated in 2008, and am currently paying both private and federal loans. Does this mean that basically all these new rules are not going to affect me?? Is there something for those that are in student loan debt in both private and federal, who cannot get a co-signer (couldn't get one to go to school, so don't think they would to pay it back), and is having trouble paying the bills even after repayment plans? If I knew this all back when I decided to go to school, it would have been a lot different. I didn't have anyone explaining the process to me unfortunately. I'm now in $170,000 in student loan debt, and most of it is the interest. I've talked to several people in the financial industry, all they can say is get a better paying job because nothing is wrong with my credit other than my debt-to-income ratio... I want to make sure that I'm understanding this correctly, that there is no help currently out there for those like me, other than what I already have.

Jennifer of TX 11:17PM January 31, 2012

So, I thought I was eligible for the new Special Program. Turns out I'm not. I thought at the time I received aid that it was straight from the Feds, everytime I checked on my balance, interest I did so through their website, etc. Turns out, it was federal money, but serviced through a commercial lender (Sallie Mae, inc.), I just thought they were the feds (something like Fannie/Freddie). I do not recall getting any information from my school's financial aid department that this distinction would matter, nor do I remember getting information about having a choice in servicers, commercial or staying public. It has been awhile, so maybe I simply forget and all was transparent at the time. Regardless, Sallie Mae, doesn't count as Direct. According to the woman I spoke to at the Federal Student Aid office, it wasn't until 2009 that the Fed started to take over the loan servicing component keeping it all in-house. This is a major disappointment! How does this even count as a real student loan solution? Everyone I know is like me. How about taking back the loans in total, especially since the commercial lender got them risk free and fully funded (or at least guaranteed) from the feds?

Hilary of DC 4:10PM January 29, 2012