Mamie Till Mobley

"There was an important mission for me, to shape so many...young minds as a teacher. God took away one child but...(gave) me thousands. And I have been grateful for the blessing." Mamie Till Mobley

Saturday, January 26, 2013

Student loans in Australia and United Kingdom not same as USA, Congress should not pass student loan payroll deduction bill

There is a discussion underway in Congress to deduct student loans from payroll deductions alleged to be similar to the United Kingdom and Australia, but the U.S.A. Congressional sponsors of the bill are disingenuous and spreading misinformation about how it works in these  two countries.
There is an income threshold in both countries students have to meet to start paying back the loans. In  the UK its over  21,000 pounds that converts to over $32,000 in USD.
Does Australia Have the Answer? - Brainstorm - The Chronicle of Higher Education
In Australia "Currently, that threshold income is around $45,000 per year and as soon as the borrower meets that threshold, whether it is while the student is still in school or even years after graduation, repayments begin. The monthly payment amount is not based on the size or term of the loan, but instead on the borrower’s level of income, with students at the threshold level paying 4-percent of their earnings in loan payments and those earning higher wages paying no more than 8 percent of their earnings. Unlike in our Income Based Repayment program, interest does not capitalize and the total amount due does not increase just because a longer repayment term is in order (unless the economy is so strong that CPI increases dramatically over that period of time, in which case one would assume that wages would maintain a similar rate of growth). Perhaps most importantly, there are no defaults in the Australian student-loan program. It is the Australian Tax Authority that collects student loan payments, not the Department of Education, and the borrower has the option of either making payments through routine payroll deductions (similar to the way in which Americans pay their FICA and other taxes) or through annual tax assessment."

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Whitney Tilson (3rd background)

Whitney Tilson (3rd background)
"Let’s be honest: we need a lot more well-off, well-educated white folks with a personal stake in both charter schools and education reform in general if we’re going to take reform to the next level, both politically and operationally.Whitney Tilson, hedge fund manager and major funding angel for the school privatizing Democrats for Education Reform, thinks there’s not enough rich, educated white folks.( Preaprez) click photo to his blog.

Arne Duncan

Arne Duncan
U.S. Secretary of Education, click photo