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In addition, homeowners at risk of foreclosure may benefit from the bailout bill by being able to modify their mortgages. The purpose is to lower the payments to an amount that homeowners can pay them consistently. Organizations similar to the National Association of Realtors are pleased with the legislation for helping individual homeowners by minimizing foreclosures which help stabilize the housing market. Lawrence Yun, chief economist of the National Association of Realtors asserts, “Now there is an ability to hopefully quickly modify loans that people are having trouble paying and that will lessen the foreclosures” (Bahney). Changes may include lengthening the loan, reducing interest rates or writing down some principal. This is a huge advantage for homeowners since the Bailout Bill gave them an opportunity to modify their mortgages in a way that suits them.
Last but not least, the jobs situation already looked uninviting before the recent financial meltdown, and some expect that it will get worse. The national unemployment rate reached a five year high of 6.1 percent, about 9.4 million people, in August (Lee). To fix this issue, the House of Representative approved a jobless benefits extension to the bailout plan. Regulations for unemployment insurance are different by state. Usually applicants have to prove that they had lost their job through no fault of their own. Once approved, they have to present many proofs that they are searching for a job. Their payments are based on prior income, up to a weekly limit of $250 to $370 depending on the state. State aid lasts for 26 weeks. The pending House and Senate extension proposals would add an additional seven weeks of aid for all states. Where unemployment goes over six percent, that states would receive another 13 weeks aid. A
professor of economics at the UC Berkeley quotes, “Without a bailout, the unemployment rate could hit as high as 12 percent. A successful bailout could help keep the unemployment rate
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below eight percent for the next year” (Coombes and Mantell). This is a tremendous benefit for the 800,000 laid-off U.S. workers. Through the Bailout Plan, they are now capable of supporting themselves and their families.
Many felt that their money should not be used to rescue “greedy bankers”. However, many others also felt that they should “at least” do something to pull them out from this financial turmoil, instead of using more time figuring out a better plan while conditions worsen. The Bailout Bill needs to take effect in order to help the United States take a path away from this financial burden. In doing so, the Bailout Bill will assist students in obtaining loans, help homeowners modify their mortgages, and curb the unemployment rate. Amber Fetter points out that in an October 6 article in the San Francisco Chronicle titled, “After the bailout: What’s next?” the article stated, “The only thing worse than having a bailout would be having no bailout at all.”
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Works Cited
Bahney, Anna. “Bailout bill may help homeowners at risk of forecloser.” USA TODAY
3 Oct. 2008. Gannet Co Inc. 19 Oct. 2008 <
/economy/housing/2008-10-03-bailout-helping-homeowners_N.htm>.
Coombes, Andrea, and Ruth Mantell. “Bailout plan will help most Americans, but not
much.” Ventura County Star 28 Sep. 2008. The E.W. Scripps Co. 22 Oct. 2008 < http://www.venturacountystar.com/news/2008/sep/28/bailout-plan-will-help-most-americans-but-not/>.
Fetter, Amber. “Could bailout force college students to bail out of college.” Michigan
Tech Lode 08. Oct. 2008. 19 Oct. 2008. <>.
Hughes, Jamie. “Professor: Bailout will save student loans, job market.” The Oklahoma
Daily 15 Oct. 2008. The University of Oklahoma Independent Student Voice.
19 Oct. 2008 <http:// >.
Lee, Chisun. “Will Congress Bail Out the Jobless?” ProPublica 2 Oct. 2008. Sandler
Foundation. 19 Oct. 2008 <>.
“President Bush presses for action on student loan bill.” FOXNews.com 26 Apr. 2008.
FOX News Network, LLC. 21 Oct. 2008 <http://www.foxnews.com/story/
0,2933,352720,00.html>.
