<p>okay, so suppose he gets elected, how soon can he get these ideas implemented and if it will effect us (having kids in college now).<br>
And I want to know what he has to say about loan interest rates, consolidation, etc...<br>
<<eliminate costly="" bank="" subsidies="" currently,="" there="" are="" two="" basic="" college="" loan="" programs:="" the="" direct="" family="" education="" program,="" funded="" privately="" by="" banks="" from="" government.="" loans="" cost="" more="" per="" greater="" benefits.="" obama="" will="" save="" taxpayer="" money="" billions="" and="" directing="" that="" into="" aid="" for="" students.="">></eliminate></p>
<pre><code>* Create the American Opportunity Tax Credit: Obama will make college affordable for all Americans by creating a new American Opportunity Tax Credit. This universal and fully refundable credit will ensure that the first $4,000 of a college education is completely free for most Americans, and will cover two-thirds the cost of tuition at the average public college or university and make community college tuition completely free for most students. Obama will also ensure that the tax credit is available to families at the time of enrollment by using prior year's tax data to deliver the credit when tuition is due.
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<p>On this second issue, does 'checking the box' that is referred to mean that not only your FAFSA info would be sent directly by the IRS AND your banking info would also be Directly transmitted. I mean, from a technological standpoint it is doable. Just match up the social security numbers to tax returns and banking. Not sure how people would feel about that...... </p>
<pre><code>* Simplify the Application Process for Financial Aid: Obama will streamline the financial aid process by eliminating the current federal financial aid application and enabling families to apply simply by checking a box on their tax form, authorizing their tax information to be used, and eliminating the need for a separate application.
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<p>Well tuition at Rutgers is just over $8500. 4,000 is less than 50% of the cost of the first year, so I guess our instate college is not "average", because it does not cover 2/3 of the tuition for the first year. BTW, the fact is that when one lives on campus, the R&B is more than the cost of tuition. Then I just checked the cost of another NJ public U, William Paterson. They charge a smidge under 10,000/year if we include "mandatory fees" in that tuition fee. It looks like they are more expensive than Rutgers, unless Rutgers has similar mandatory fees as well. I don't see $4,000 doing much. It sounds good to those not needing to actually pay a college tuition for a son or daughter who is aspiring to attend one of our instate public schools to keep costs low.</p>
<p>4000 would cover my son's meal plan and a couple of books.</p>
<p>And having the govt administer the federal loans instead of it being a for profit business is a good idea (assuming lower interest rates are the resul)</p>
<p>I think the idea of eliminating the Fafsa and AUTOMATICALLY having the IRS send the data is very interesting. You would also need all the financial institutions on board. The common link is the SS# and from a technological standpoint it seems doable.</p>
<p>that eliminates anybody fudging their numbers. And takes the onus off the parents and students to get it done, correctly.</p>
<p>As a middle class taxpayer, I question whether this program will end up costing me, yep me, more than I will gain in benifits. It won't help my older son. My younger son might get something out of it, but it just seems like a program that will wind up costing more in taxes for the middle class than it is worth.</p>
<p>I can't see it ever flying...sr citizens would rather see social sec issue addressed (AARP is one of the largest lobbyist). People with no health insurance will scream. Middle class taxpayers with babies would want the Hillary plan. YUPPIES and DNKs will want tax relief instead. </p>
<p>Finally, we must remember a pres. can say what he wants, but in the end it the MOC's who vote on it. Didn't they pass a fence bill back in 2005 and I haven't heard anything about it being built. Better yet, the AMT is still being addressed and so taxpayers refunds will be delayed this year....thanks to congress.</p>
<p>The next president will arrive in office with entitlement spending for Medicare and Medicaid taking off (not to mention social security), in an economic slowdown hitting tax receipts, and with no money in the till to create anything more than symbolic new programs.
We can all hope, of course. That costs nothing.</p>
<p>
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People with no health insurance will scream.
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</p>
<p>People who are paying for their own health insurance, but do not have children would scream too.</p>
<p>Just to add, I think that we will have to do something about the runaway costs of college. There will come a time in the not too distant future when middle America will no longer be able to afford to send their children (and I am not talking about private colleges). We will end up with a less educated population.</p>
<p>Everyone keeps saying that, but look at cother countries that use models closer to this, adn their quality of education is SKYROCKETING in comparison to us. This ia step in ther ight direction imo.</p>
<p>it's called capitalism, supply and demand. I think it already is changing. Many students are going to cc's 1st than transfer to a 4 yr. college as a jr.</p>
<p>UND offers 100% financing on both merit and financial aid The ivies are now following suit. Once qualified candidates turn down admissions to go to public than universities have to address how to keep their prestiige, in other words, they will have to give out more meritorious scholarships.</p>
<p>Also private colleges can charge whatever they want if they don't accept federal funding, thus it would be difficult to regulate them</p>
<p>I also believe once we start letting the govt dictate, the beauracracy beomes unreal...Can we all say no child left behind or goals 2000?</p>
<p>if he wants to "simplify" the process, why not just fund community colleges directly, or, for that matter, the colleges directly? Each college could count up its students in Sept and send a bill to the feds for the full tuition costs (community college) or up to $4,000 for each one of their full time students. It gets the students/families completely out of the paperwork process.</p>
<p>bluebayou, I think that he is proposing 4k for only freshman. It seems that this is a one time deal for the first year. If schools are given the money directly, then taxpaying parents don't feel like they got anything, I guess. Nothing like seeing 4k come off taxes, or getting a check for that amount ;). Of course your plan makes much more sense, IMO. If schools continued to raise tuition by thousands per year (4-8% of what, 45k for privates, and 20k for public schools) the 4 k quickly vanishes from one's bank account anyway. It is a joke, IMO, and one that will raise my taxes again.</p>
<p>
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I think that we will have to do something about the runaway costs of college.
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<p>Easy - don't pick the high-cost colleges to send our kids to or lower the costs by attending a local college and not paying for the dorms which is a significant cost. If there was no demand then prices would come down. In reality, this isn't what we want and so far there's still plenty of demand so what incentive is there for the more expensive colleges to reduce their costs? Actually, the more money made available through taxation (as in Obama's plan), the more the colleges are likely to charge and we'll be right back where we are now albeit with the colleges likely reaping more money on the backs of taxpayers.</p>
<p>my very rough numbers suggest this could easlily be paid by reducing Social Security payments by about 3%.... My research could be wrong, but I see 3.3 Million high school graduates 3.3*4000= 13.2Million$... OASDI</a> Monthly Statistics, October 2007 - Table 2 </p>
<p>Total SS payment 34.6Million$ per month *12 =415Millon$ per year 13.2/415=3.18% ... </p>
<p>I have no opinion one way or the other, Politically (really). I do suspect most private schools would be $4000 more expensive per year....</p>
<p>The median family income in the U.S. is around $53k - with the middle quintile being $43-$67k. I doubt that on average they pay $4k in federal taxes. So the tax credit is hardly aimed at middle income taxpayers.</p>
<p>What it will do is run up public tuition rates for those least likely to be able to afford them. It sounds like a good REPUBLICAN plan-primarily benefitting individuals in the top two quintiles, and including getting rid of FASFA paperwork.</p>
<p>In my opinion, the republican plan is exactly what we have we have now. Raise the pell grants by a small margin while runaway college tuition goes up quite a bit more at public and private colleges. Keep the middle class happy by increasing federal loan amounts that we can put on the backs of our childrent with 6-7% interest. If enough pressure is there we can open look like big spenders by cutting the interest rate in half and then we can slowly raise it again. For those less fortunate we can offer Perkins Loans on top the Stafford Loans for more debt to those in need. Isn't this what we have today?</p>
<p>"my very rough numbers suggest this could easlily be paid by reducing Social Security payments by about 3%.... My research could be wrong, but I see 3.3 Million high school graduates 3.3*4000= 13.2Million$.."</p>
<p>Not a chance in a million. Why take it out of the pockets of retired people?</p>
<p>actually thats my point!! One way or the other it will come out of someones pocket.... why not the retirees??</p>
<p>I do think an educated citizenery is very important 'even as someone who is rich' by Mini and IRS standards (by that mini I mean that you have used numbers to show that the rich and middle class are different that what many of us-me included use to think --i feel blessed to have the resources I do)</p>
<p>Lots of uneducated poor would potenitally harm my lifestyle, not to mention the good sense of helping others.</p>
<p>WHAT this does not -most likely mean- is a private'elite' education .. i went to a mid-tier public in texas... it has served me well in having a good life, of income, education(yes I learned culture at texas tech-at least more than I had), opportunities , and life enjoyment . I think we should tax large endowments ... interesting to see who yells when their 'Ox is gored"</p>
<p>The problems of the "uneducated poor" tend to run far deeper than worrying about getting money for college. For most graduating from HS would be a major improvement. Even pushing large amounts of money into schools has not proven to work very well ( see Kansas City and some fairly rich suburbs with lower income areas). The problems still run deeper.</p>