Addressing educational cost

Obama’s vision for affordable learning

…Under the terms of this program, anyone who makes his monthly payments for 20 years after leaving college is eligible to have his remaining balance forgiven. At least, this applies to anyone with Federal Direct loans, Stafford loans, and Perkins loans.

Those who take out their loans from private lenders such as Sallie Mae are still responsible for repaying their loans in total.

Individuals who spend 10 years in public service positions become eligible to have their loans forgiven at that point rather than having to wait 20 years. This means their debt is forgiven in half the time and their debt reduced significantly sooner.

It is also a part of the plan that monthly payments be capped at a level of 10 percent of the money that is left over when all taxes are paid and basic necessities taken care of. This cap has been at 15 percent, which takes a lot more money out of the pockets of citizens and out of the economy.

There are also programs in place that allow teachers to work for just five years in elementary or high schools that have been designated as low income schools by the Department Of Education. This applies to FFEL loans and to Direct loans.

Military personnel are also able to achieve forgiveness for their student loans if they have a degree. This program works for members of all five branches of service, including the Coast Guard and Reserves.

A final option is to apply for income-based repayment terms. While it is probably best to sign up for this early in the life of the loan, older loans may still qualify for this lower payment plan. Of course, the clock starts all over when one signs up for this option. That means that someone who has worked in public service for eight years and signs up for income-based repayment must work another 10 years in public service instead of the two he would have had left.

…While nobody will see his loan just disappear overnight, payments have been lowered and the time shortened that one must pay before the remaining balance is forgiven…

Excerpts taken from Obamastudentloanforgiveness.com.

Romney’s vision for affordable learning

…America’s traditional community and four-year colleges are the heart of our nation’s higher education system. However, a flood of federal dollars is driving up tuition and burdening too many young Americans with substantial debt and too few opportunities. Meanwhile, other models of advanced skills training are becoming even more important to success in the American economy, and new educational institutions will be required to fill those roles.

…Consolidate duplicative and overly complex programs within the Department of Education. Focus the department on giving students and families with financial need the appropriate information about completion and persistence, loan repayment rates, future earnings and other indicators to intelligently weigh the risks and benefits of the many options available to them, rather than limiting choices through punitive regulations.

…Reverse President Obama’s nationalization of the student loan market and welcome private sector participation in providing information, financing and the education itself.

…Encourage market entry by innovative new education models, emphasize skill attainment instead of time spent in the classroom and support research and development. Repeal consuming and unnecessary regulations that primarily serve to drive costs higher, and replace them with common-sense reforms that ensure appropriate student outcomes…

Higher education is becoming at once more important and more unaffordable than ever, stretching family finances and producing new graduates who have too much debt and not enough of the skills they need to succeed in the modern economy.

Finally, in focusing on reform, we must not lose sight of those policies that are working. The long-term federal investment in basic research within institutions of higher learning has been a crucial engine for innovation in our economy, and one that could not be replicated through other sources of funding.

Excerpts taken from Romney’s A Chance for Every Child.