College Cost Reduction and Access Act

[Bonko]

Hey everybody I was reading through CNN last night and found this story
http://www.cnn.com/2009/US/06/24/college.loans/index.html

Basically it talks about a new law that goes into effect July 1st. College Cost Reduction and Access Act If you have high student loans but low income then you can make Income based payments towards your student loans over 10 years. On top of that if during those ten year you work for a public service IE the military after those ten year they will drop the remaining balance owed on your student loans.

I did some foot work and you can find more information about it here http://studentaid.ed.gov/PORTALSWebApp/students/english/OtherFormsOfRepay.jsp
They say to call your lender to find out if you willbe eligible for the program.

 

[BACONATOR]

I can't imagine as an officer you'd be eligible, making 50+K a year, unless you had RIDICULOUS college loans or something, but worth a shot.

 

[Picaroon]

So basically... get a really expensive degree that no one wants from a private school, fail to land a real job, and get paid by the taxpayer for it?

Just sayin...

I guess the counter to that, though, is that education is a market failure and this compensates for that.

 

[Bonko]

I can't imagine as an officer you'd be eligible, making 50+K a year, unless you had RIDICULOUS college loans or something, but worth a shot.

Well it is based on your taxes so you wont be making 50+, however I checked it and it shows you would be eligible even then but you are paying about 500 a month towards them. Depends really on how much in student loans you have.

 

[Jynx]

So basically... get a really expensive degree that no one wants from a private school, fail to land a real job, and get paid by the taxpayer for it?

Just sayin...

I guess the counter to that, though, is that education is a market failure and this compensates for that.

While I'm sure there will abusers of the idea, you do still have to be a public servant, which means you are working somehow. Whether or not your work is actually a service to the public depends on the individual job though, doesn't it?

On the other hand, I think the risk of abuse is worth it, especially for people this year. There are many who graduated with Math or Science degrees in '09 who can't get employment because research grant money has dried up. I'd say it's hard to argue in favor of BioChem or Physics being a degree noone wants, but in times like these, a lot of them are taking jobs anywhere they can find, with the result being that they're "under-employed."

 

[villanelle]

While I'm sure there will abusers of the idea, you do still have to be a public servant, which means you are working somehow. Whether or not your work is actually a service to the public depends on the individual job though, doesn't it?

On the other hand, I think the risk of abuse is worth it, especially for people this year. There are many who graduated with Math or Science degrees in '09 who can't get employment because research grant money has dried up. I'd say it's hard to argue in favor of BioChem or Physics being a degree noone wants, but in times like these, a lot of them are taking jobs anywhere they can find, with the result being that they're "under-employed."

I work in grant adminsitration and grant money has defintiely not dried up. In fact, we are busier than ever and with the ARRA (American Recovery and Reinvestment Act of 2009) money starting to arrive, we are expected to get even busier. Every university that I deal with is in a similar situation.

Granted, all of these are univeristy programs, but our scientists are definitely hiring.

 

[navygirl7]

Wow. What a complete and utter waste of money. Most internships at investment banks pay around minimum wage. So, do my internship, get the taxpayer to pay for my absurdly high college loans, then make $200K per year with an expense account. Yay.

Meantime, the Marine Corps is canceling there Active Component College Loan Repayment Program- on the same day this stupid program starts.

 

[Jynx]

I work in grant adminsitration and grant money has defintiely not dried up. In fact, we are busier than ever and with the ARRA (American Recovery and Reinvestment Act of 2009) money starting to arrive, we are expected to get even busier. Every university that I deal with is in a similar situation.

Granted, all of these are univeristy programs, but our scientists are definitely hiring.

ARRA? I'll have to look into that.
What do you give grants in?
I ask because my ex, a biochem major, was told the grant money wasn't coming from private sources anymore, and without it she was SOL. My dad correlated, saying his Psych research dept. was freezing pay and not hiring any one new.

 

[Jynx]

Wow. What a complete and utter waste of money. Most internships at investment banks pay around minimum wage. So, do my internship, get the taxpayer to pay for my absurdly high college loans, then make $200K per year with an expense account. Yay.

Meantime, the Marine Corps is canceling there Active Component College Loan Repayment Program- on the same day this stupid program starts.

I think this program only applies to public service, unless I've misread it. Granted, Citi and BofA are public enterprises now, but I don't think their employees will be eligable as I understand the law.

 

[Bonko]

I think this program only applies to public service, unless I've misread it. Granted, Citi and BofA are public enterprises now, but I don't think their employees will be eligable as I understand the law.

Well that includes military service according to their own documents. The list is on the second page.
http://studentaid.ed.gov/students/attachments/siteresources/LoanForgivenessv4.pdf

 

[Lobster]

So basically... get a really expensive degree that no one wants from a private school

checking that one off my list .

I kind of want the degree though, just like i'm one of those weirdos that actually thought transformers was awesome.

 

[Jynx]

Well that includes military service according to their own documents. The list is on the second page.
http://studentaid.ed.gov/students/attachments/siteresources/LoanForgivenessv4.pdf

Doesn't Mil Service fall under the category of Public Service? We are paid by the federal gov't after all. I rather assumed so, so I find it funny they had to elaborate on that point in that list.
Edit, they apaprently list the military as a not for profit private concern.
"A private organization that is not a for-profit business, ...Military service"