Millions of student loan borrowers will be eligible to lower their payments and consolidate their loans under a plan President Barack Obama intends to announce Wednesday, the White House said.
I see this along the same lines as "Cash for Clunkers." For the 28-year-old with the Masters in Sociology who has racked up $100,000 (actually, there was an actual New York Times story about such a student except it was only her Bachelor's degree, she had a double major in Comparative Religious Studies and Womens Studies, but it was still $100,000 in debt), it has already been demonstrated that he or she lacks financial savvy to understand that you have to weigh the value of something before you assume debt to acquire it.
So, chances are, a reduction in debt on this person's personal balance sheet is likely to be replaced with more debt. I would even be willing to bet it will be consumer debt - the new notebook, car, or backpacking trip to Katmandu.
Yeah, gotta reuse this picture because this is the target audinece of this latest plan from Obama.
Or worse, someone will think, "Great, now I can move to Greenpoint and open that sustainable vegan latte-and-cupcake bar I've always wanted!"
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