Government takes over all student loans

[stateofbeasley]

Originally posted by: CycloWizard
If this had been the case when I started school and the rules regarding

Anyone can get Stafford loans. Just ask all of the white, middle class graduates of Temple Law School who are now tens of thousands of dollars in debt and struggling to make ends meet as the legal market collapses.

These student loan companies are monsters and should not be on government welfare. They made loans recklessly, and then pass the cost of losses to the taxpayer. Fuck them.

That's not to say that a full government takeover of the loan system is good either. Student loans cannot be handed out like candy.

Student loans should not be granted to people to get a useless BA in something like Elbonian Literature so they can qualify to make coffee at Starbucks and then go on to get a worthless law degree from a sh1t Third Tier law school. The system encourages people to get degrees that just put them in debt.

 

[Craig234]

Originally posted by: Cuda1447
I want less government involvement in our life, not more. I guess that makes me a racist.

N, it just makes you igorant for your selectivity in applying the idea, and an idiot for equating the issue of rcaicm with Obama to holding that opinion.

Link

The link above was a column about people like you, who are being manipulated into blaming the wrong people. Read it and then comment.

 

[duragezic]

Why does the government currently pay all this money to private loaners?

And if my own school loan rates are any indication, I don't want more government ones! My Stafford loans are at 6.8% and some around 7.2%. Ridiculous. My other loan is from what I believe is the university (or at least not the federal government?) and is 5%! Low interest government loans my ass.

But what's ridiculous about them is that I could go get a 5yr car loan at 5% or less. Apparently a vehicle loan for half of the time from a private company is a MUCH better rate than a 10yr higher education loan from the government? Only reason I'm not too ticked about them is I worked hard in school at a good degree and now have a job that can easily pay them back.

That is what I think needs to be addressed. And the out of control costs.

I also don't get his agenda that aims to improve graduation rates? That has nothing to do with the government; that's up to the individual.

 

[Craig234]

Originally posted by: dmcowen674

Originally posted by: Cuda1447
I want less government involvement in our life, not more.

I guess that makes me a racist.

You want less go to another country. Problem for you solved.

That's a weak response to him. Why shoulsn't he tell you to move to another country?

If it's because Obama got elected and not McCain, was it justified to say that under Bush?

 

[Craig234]

[nm

 

[MotF Bane]

Fuck this. I'm getting a better interest rate off my Citi loan than my federal loans.

 

[ohnoes]

Better link from MSNBC: http://www.msnbc.msn.com/id/32...ness-personal_finance/

This only applies to loans with federal $. Currently, private lenders make loans to students directly, but the loans are backed with federal dollars. Now, the government originates those loans and it will still be backed by the _same_ number of federal dollars. Nothing changes, except you cut out the middleman.

You can still get private loans for college just like you could get a private loan for buying a car, a boat, a plane, or a house.

 

[ohnoes]

Looking back @ the WSJ article, it's poorly phrased and implies something that isn't true. Although I'm sure it will be cited and all over the radio/media as another example of gov't takeover.

As an aside, if you make some simple deductions from the WSJ article, it basically means that without federal guarantees on student loans, private lenders don't want any part of the college loan market. And if they did, they'd need to charge credit card interest rates to justify the risk. Capitalism rocks no?

 

[bamacre]

Originally posted by: dullard

Originally posted by: JS80
Also, the price of education should go up too, further fucking over the people.

Why would the price of education go up if students and taxpayers no longer pay profits to companies?

Why do you think the cost of college tuition has gone up so much in the first place? I graduated almost 10 years ago, and tuition has doubled at the school I went to. Is it because the demand has doubled? Nope.

 

[halik]

Originally posted by: CycloWizard

Originally posted by: TruePaige
What the heck are you talking about?

EVERYONE can get Stafford loans.

I could get Stafford loans to pay for about 4% of my tuition. What good does that do me?

How ? You must've messed up somewhere in the process. Only the subsidized loans depend on your level of income.

 

[halik]

Originally posted by: duragezic
Why does the government currently pay all this money to private loaners?

And if my own school loan rates are any indication, I don't want more government ones! My Stafford loans are at 6.8% and some around 7.2%. Ridiculous. My other loan is from what I believe is the university (or at least not the federal government?) and is 5%! Low interest government loans my ass.

But what's ridiculous about them is that I could go get a 5yr car loan at 5% or less. Apparently a vehicle loan for half of the time from a private company is a MUCH better rate than a 10yr higher education loan from the government? Only reason I'm not too ticked about them is I worked hard in school at a good degree and now have a job that can easily pay them back.

That is what I think needs to be addressed. And the out of control costs.

I also don't get his agenda that aims to improve graduation rates? That has nothing to do with the government; that's up to the individual.

Private loans are virtually always variable rate, see if you can find a fixed rate private loan for under 10%. I certainly didn't see anything cheaper than 6.8% fixed over the last 3 years i was in grad school

The reason why auto loans are cheaper is because if you stop paying, they will repo the collateral. They can't repo anything for the 40K of debt you owe em.

 

[ohnoes]

I'd venture a guess that if you wanted to pay for college with a 100% private non-federally backed loan, you might as well pay for tuition with your credit card since that's the rate they'd give you.

 

[spidey07]

Another week, another gubment takeover of private industry.

-edit-
And before anybody screams "Federally funded loans!". Yes I know. It's the pattern that I'm getting at.

 

[ohnoes]

Originally posted by: spidey07
Another week, another gubment takeover of private industry.

-edit-
And before anybody screams "Federally funded loans!". Yes I know. It's the pattern that I'm getting at.

Yea, but what value does that industry really add?

I can see improving the fed's cash flow, but then again its the fed we're talking about.

 

[dammitgibs]

Relax guys, this is just the government competing with the private sector, this is how governments compete, nothing to worry about.

 

[fskimospy]

So we should probably change the title of the OP, don't you think? It's insanely misleading.

 

[JKing106]

Originally posted by: eskimospy
So we should probably change the title of the OP, don't you think? It's insanely misleading.

Then it wouldn't engender false outrage at "everthang gubment is teh ebil!"

Fuckers sure don't mind calling the police or the firedepartment when they need them, do they? And they'll sure as hell take that SS check when the time comes. Hypocrites.

 

[fskimospy]

Originally posted by: JKing106

Originally posted by: eskimospy
So we should probably change the title of the OP, don't you think? It's insanely misleading.

Then it wouldn't engender false outrage at "everthang gubment is teh ebil!"

Fuckers sure don't mind calling the police or the firedepartment when they need them, do they? And they'll sure as hell take that SS check when the time comes. Hypocrites.

I just like how 'government no longer giving truckloads of cash to banks for them loaning the government's own money out' suddenly turns into 'GOVERNMENT TAKEOVER OF ALL STUDENT LOANS HURF BLURF'.

 

[ohnoes]

Actually, if you take out the borrow from Fed to make FFELP loans aspect, it does get a little murky. Dept. of Edu is going to have to put out a lot more money whereas before they were just acting as an insurer on the program.

 

[TruePaige]

Originally posted by: CycloWizard

Originally posted by: TruePaige
What the heck are you talking about?

EVERYONE can get Stafford loans.

I could get Stafford loans to pay for about 4% of my tuition. What good does that do me?

They let you borrow like 10,000 dollars a year...more as you advance along.

 

[halik]

Originally posted by: TruePaige

Originally posted by: CycloWizard

Originally posted by: TruePaige
What the heck are you talking about?

EVERYONE can get Stafford loans.

I could get Stafford loans to pay for about 4% of my tuition. What good does that do me?

They let you borrow like 10,000 dollars a year...more as you advance along.

My room mate went through law school on gov't loans (150K worth), I don't think he knows what he's talking about.

 

[TruePaige]

Originally posted by: halik

Originally posted by: TruePaige

Originally posted by: CycloWizard

Originally posted by: TruePaige
What the heck are you talking about?

EVERYONE can get Stafford loans.

I could get Stafford loans to pay for about 4% of my tuition. What good does that do me?

They let you borrow like 10,000 dollars a year...more as you advance along.

My room mate went through law school on gov't loans (150K worth), I don't think he knows what he's talking about.

Yeah, it doesn't make sense. You can borrow hundreds of thousands of dollars total if you go to grad school, and at least a good 40k (I think the limit is like 55?) as an undergrad.

 

[ohnoes]

This thread brings another pet peeve of mine. My dr. friend uses his med school loans as justification for dr. salaries, but its such BS. Law/Bschool grads take on just as much loans, and make a fraction of his salary out of school.

 

[halik]

Originally posted by: ohnoes
This thread brings another pet peeve of mine. My dr. friend uses his med school loans as justification for dr. salaries, but its such BS. Law/Bschool grads take on just as much loans, and make a fraction of his salary out of school.

Umm lawyers make a lot of money and mean salary from good MBA program is around 6figures also. The reason why the programs cost so much money is the future earning potential - it's supply and demand.

 

[Atreus21]

Freaking brilliant.