Any help would be greatly appreciated Mr. President!
this speech is being given very near my home, and I'm bummed that I can't go (need a student or faculty ID to get tickets AND to attend). Though I don't count myself an Obama "fan", I do respect him and the things he is trying to do. I'll be very interested in what comes of the speech, what he says, and how it is received.
I don't know how to implement the "balance" either but I do think there are flaws that fall outside of the "Johnny" example. One flaw is that over the lifespan of the loan (some over 20 years) the interest rate can be raised as well as the percentage of income that can be collected. This isn't right. Plus, I don't think it's right that income is determined on a household basis. My wife and I are literally considering getting a "divorce" on paper because it will save us roughly $12,000 a year. -if you consider that the $12k could be used to procure an appreciable investment, the divorce becomes a pragmatic option. -This shouldn't be the case.
According to the plan, we would have the option to cap payments at 10% of discretionary income. I'm not sure what that means exactly, but it sounds pretty good to me. I think debt relief is a great version of stimulus, since consumer spending has been a big problem for the economy. Debt burdens are high enough that many people are giving a huge chunk of their paycheck to the banks, which is terrible for producers of goods and for the overall wealth distribution. I applaud this move, and I hope that the courts don't step in and say that this can't be done by executive order. Sadly, if history is any indicator, they will.