Student Loan BailoutIB
I've been reading about this "Pay as you earn" plan that Obama wants to extend to all student borrowers. Basically, it caps your payments to 10% of discretionary income, and forgives the balance after 20 years (10 if you work in "public service").
The implications of this are that your loan payments stay at a very manageable level (10% discretionary, pretty sure some people spend more than that on movies every month) regardless of how much you borrow. That's right, no relationship between what you borrow and what you pay back.
This is a great deal for grad students, who have no limit on federal borrowing (and no oversight of what they spend it on - e.g. cars, weddings, vacations). The article below explains how an hypothetical MBA could have some of their principal, and all of their interest, forgiven despite making $200K + salary:
The WSJ has weighed in on this a few times recently (subscription required for second article):
This is the kind of thing that makes this blue state liberal see red.
How do my fellow tax payers feel about this? Grad students?