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Author: 2828 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 726004  
Subject: Student Loan Bailout Date: 1/6/2013 8:02 PM
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I didn't even realize they did this:

http://www.zerohedge.com/news/2013-01-05/here-comes-student-...

A new federal program should make it easier for some recent college graduates to keep their student-loan payments manageable.

The new option, known as the "Pay as You Earn Repayment Plan," lets eligible borrowers sharply lower their monthly loan payments and qualify for loan forgiveness quicker than they might otherwise.

"It's a very good safety net for students who borrow too much," says Mark Kantrowitz, publisher of the financial-aid site FinAid.org. "If your debt exceeds your annual income, you will probably benefit."
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Typically, federal student loans must be repaid within 10 years. At current interest rates, that can work out to a monthly payment of roughly $300 for a borrower with $26,000 in debt.

Pay as You Earn, by contrast, limits student-loan payments to 10% of "discretionary income" as defined by government formulas. Borrowers who make regular payments could have the remaining unpaid amounts forgiven after 20 years.
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So much for student debt being non-dischargeable: borrow hundreds of thousands, but make your monthly payment of a hundred or so bucks, and in 20 years you will be debt free, courtesy of US taxpayers. Actually, scratch that: one doesn't even have to make a payment!

In some cases, borrowers with low incomes could be required to make a zero-dollar payment and would still be considered current on their loan. Monthly payments can increase or decrease each year based on the borrower's income and family size.

For those who think getting full debt forgiveness in 20 years is far too long, why there's a loophole for that too: just go "work" for Uncle Sam:

Borrowers with public-service jobs may qualify for loan forgiveness after just 10 years.
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1.go to some "everyone who applies is admitted" community college

2.take on the biggest Federal loan one can get

3.use the proceeds for everything besides the tuition (of course)

4.be unable to find a job after graduation (naturally)

5.plead poverty, accusing evil employers who don't hire those who majored in Foosball, and make "zero" payments while remaining in "compliance"

6.get a job working for the government, wait ten years, and have the entire loan magically disappear.
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Man did i do it wrong.
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Author: JoshRandall Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 664746 of 726004
Subject: Re: Student Loan Bailout Date: 1/6/2013 8:14 PM
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Man did i do it wrong.

Sucka!

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Author: CCinOC Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 664760 of 726004
Subject: Re: Student Loan Bailout Date: 1/6/2013 9:05 PM
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I know a lawyer who plans to handle his student loan debt using this program.

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Author: bighairymike Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 664769 of 726004
Subject: Re: Student Loan Bailout Date: 1/6/2013 10:24 PM
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I know a lawyer who plans to handle his student loan debt using this program. - CC

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Synchro. My son borrowed a crap load of money to go back to law school. Graduated 1.5 years ago, now living large in Tampa, and is on this very program to retire six figure debt.

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Author: telegraph Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 664771 of 726004
Subject: Re: Student Loan Bailout Date: 1/6/2013 10:48 PM
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free college!...free!....wherever you want to go!.....

just be 'laid back' for the first ten years....don't work too hard....and after 10 years that quarter million you ran up at the 'best' school just vanishes!...

free!....

free!


obama college ....free!



t.

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