Romney: Forgiveness of Student Loan Interest was 'Big Gift'

Student loan terms that were eased by President Obama during his first term was part of the rationale used by Mitt Romney in explaining his defeat to fund-raisers and campaign donors.
The New York Times reported that Romney told his supporters: “With regards to the young people, for instance, a forgiveness of college loan interest was a big gift.”
What was this big gift?
Congress in June overwhelmingly approved an extension of the low 3.4 percent rate on federally subsidized student loans, avoiding a doubling of the rate on July 1. Romney himself said he approved of the extension during campaigning, but only after Obama made it a front-and-center issue of his re-election campaign for several days.
The Republican-led House of Representatives and the Senate with a Democratic majority showed uncharacteristic harmony by approving the rate extension as part of a big job-creating transportation bill. Had the student loan measure failed, interest rates would have ballooned to 6.8 percent for undergraduates for the coming academic year.
Even before his campaign for re-election heated up, Obama initiated an easing of student loan terms.
Since the start of 2012, an estimated 6 million students and recent college graduates are able to consolidate their loans and reduce interest rates. The lower rates is based on 10 percent of a student’s discretionary income – that figure was previously at 15 percent.  The plan also forgives the balance of their debt after 20 years of payments – instead of the previous 25-year term.
You may be eligible for the so-called Income-Based Repayment (IBR) if your federal student loan debt is high — relative to your income and family size, according to the government site on federal student aid.
The site provides an IBR calculator to estimate whether you are likely to qualify for the lower-rate plan. The calculator examines income, family size, and state of residence to calculate your IBR monthly payment amount.

One thought on “Romney: Forgiveness of Student Loan Interest was 'Big Gift'

  • November 16, 2012 at 10:36 am

    You’re totally right Romney! A total gift! So, If Romney’s daddy didn’t pay for all his school, I guarantee you that Romney would have self-imposed an interest rate double what would be required of him and re-payed all his debt in a single month! Take that you jobless educated snobs.

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