Obama to unveil bail out on student loans

[MotF Bane]

Getting pretty sick and tired of this "bailout" shit.

This.

 

[child of wonder]

This.

+2

We're simply delaying the real pain and making it worse.

 

[Wreckem]

I'll kiss you if this is true... she is a trauma surgeon so that fits fairly good into 'public service' I'd think.

I should have added, so long as they aren't private loans. And it depends when she consolidated them.

IF the loans didn't originate(or weren't consolidated) after a certain year she would unfortunately not be eligible for IBR.

Here is a fact sheet.

http://studentaid.ed.gov/students/attachments/siteresources/LoanForgivenessv5_051511.pdf

Even then it might not help much because it would take both your incomes into account. Basically what I am saying it might be something to look into but y'all might not qualify and you might not be a benefit based on income. It all depends.

 

[Throckmorton]

Yes, they have to be GradPlus, Perkins, Subsidized, or Unsubsidized loans.

I consolidated my Perkins loan with some other one because the counselor at the university told me to. Damnit!


Then again I only have about $11k left. That's less than the difference between a private sector and public sector salary in one year.

 

[WhipperSnapper]

Whoopee do. That's not much of a bailout. A real bailout akin to what the wealthy and the banks enjoyed would be to immediately forgive all of the loans. "Banks got bailed out. We got sold out."

 

[a777pilot]

There is over $1trillion in outstanding student loans.

What do you plan to do when the masses start defaulting? Its the next bubble. The government needs to try and prevent it from bursting. If it means forgoing some interest, so be it.

Here's the "too big to fail" argument. If they owe this money to the government, i.e., the tax payers, then so be it. No bail out. The loans stay for ever. No welfare. No benefits. No tax refunds. No social security. No unemployment checks. Nothing till the money is paid back....in full.

We are seeing the entitled generation meeting the real world.

 

[HendrixFan]

We are seeing the entitled generation meeting the real world.

The entitled generation has already come and is on their way out. They are the ones who racked up $14T in federal debt (plus more in state and local) and expect their kids and grandkids to pay for it all.

 

[Wreckem]

The entitled generation has already come and is on their way out. They are the ones who racked up $14T in federal debt (plus more in state and local) and expect their kids and grandkids to pay for it all.

This.

In the '80s tier 1 schools in Texas were $4/credit hour. They were even cheaper in the 1970s. Its about $160 or more per credit hour now.

Tuition has gone up because a multitude of factors. Some say the biggest is because of federal aid. The federal student loan system started in 1965. Its actually, more or less states haven't continued to subsidize education like they use to. And if you look at UT, tuition revenue only accounts for 9.6% of their operating budget. Tuition has really only skyrocketed since the late 1990s/early 2000. What has happened during the same time? States have made cuts a multitude of time. All while schools have record enrollment. Add to that cuts to appropriation for professional programs is even worse. Some states sued to subsidize law and medical schools significantly. In the 1990s California law schools had 80% of their budgets appropriated by the state. Now its 26%.

Older generations received a shit ton of benefits, in addition they raped and pillaged the country by their excessiveness. Now they no longer want to give any benefits to anyone but themselves, and expect younger unemployed/under employed to pay for everything.

Not to mention what generation is responsible for gutting the US in terms of industry, etc?

 

[Ronstang]

If you are going to blame the States for cutting funds to schools then realize that it is because of the ever growing welfare state of America. You liberals like the losers....now you are paying for them in every aspect of your life.

 

[Wreckem]

If you are going to blame the States for cutting funds to schools then realize that it is because of the ever growing welfare state of America. You liberals like the losers....now you are paying for them in every aspect of your life.

Thats just your assumption. It doesn't really play out that way in states like Texas.

And I am not a liberal.

 

[HendrixFan]

Tuition at UT took off right as my time there was finishing up. You are dead right about those who took for decades are now wanting to turn of the spigot and leave everyone else out to dry.

In 2003 HB 3015 was passed to deregulate tuition under the guise of lowering costs. Ha!

http://www.utexas.edu/tuition/history.html

This reduces the total education costs for students and their families and also allows for increased access to the university. This Web site offers additional details about the flat rate tuition system and tuition deregulation.

http://www.utwatch.org/tuition/tuition_dereg.html

There are some good nuggets of info in this link including:

We can now understand former UT Chancellor Hans Marks statement in 1991, "Tuition is primarily a mechanism for supplanting our income. It doesn't amount to a big fraction of it, as you know. The academic budget of UT-Austin is $550 million, and we can earn about $20 million in tuition. The only justification for tuition today is to supplement the budget and to demonstrate to students that they are getting something of value. When you get something free today, there is a tendency to say it is not valuable."

It's a proven failure. In 1987, tuition was deregulated for graduate students. The result? Within two years, tuition doubled in the Graduate School of Business and went up 87% in the School of Law.

 

[Ronstang]

Thats just your assumption. It doesn't really play out that way in states like Texas.

And I am not a liberal.

Sorry, I'm from Texas and it does play out that way. The two biggest expenditures on the state budget are Medicaid and Education. With the ever increasing costs of health care the money has to come from somewhere. It is harder to take money from public K-12 but when you got Uncle "Dumbass" Sam to give out student loans like crazy it is quite easy to take that money from state university funding.

 

[charrison]

Tuition at UT took off right as my time there was finishing up. You are dead right about those who took for decades are now wanting to turn of the spigot and leave everyone else out to dry.

In 2003 HB 3015 was passed to deregulate tuition under the guise of lowering costs. Ha!

http://www.utexas.edu/tuition/history.html



http://www.utwatch.org/tuition/tuition_dereg.html

There are some good nuggets of info in this link including:

And there was a recent study out that said UT Austin could cut tuition in 1/2 if the botttom 80% of the profs were as productive as the top 20%.

 

[Attic]

Whoopee do. That's not much of a bailout. A real bailout akin to what the wealthy and the banks enjoyed would be to immediately forgive all of the loans. "Banks got bailed out. We got sold out."

People saw the bailout as letting off reckless banks with a blank check. Not completely true, the bailout for the banks was/is being paid back with interest. Government expects to turn a small profit, 11 billion in the sale of Citigroup shares alone.


A year old, but goes into more detail about the financial firms affected by the
TARP bailout.
http://www.bloomberg.com/news/2010-...2-profit-to-taxpayers-beating-treasuries.html

 

[a777pilot]

The US universities are no longer in the "business" of education. They are in the business o f making money. Just look at the amounts of money that continues to pile up in their endowments. As long as big government will give stupid kids money to go to college, the colleges will continue to raise their prices and take the money.

The highest paid members of these schools is usually the coaches. Why? Because they are the ones that bring in the money to the schools. And that seems, lately, to be all these schools are interested in.....money. Lots of money.

 

[HendrixFan]

And there was a recent study out that said UT Austin could cut tuition in 1/2 if the botttom 80% of the profs were as productive as the top 20%.

There was plenty of dead wood there when I attended. I'm sure most of the unproductive ones are just there as part of the educational bloat that has come from student loans. They are getting creative just trying to spend all their excess money.

 

[HendrixFan]

People saw the bailout as letting off reckless banks with a blank check. Not completely true, the bailout for the banks was/is being paid back with interest. Government expects to turn a small profit, 11 billion in the sale of Citigroup shares alone.


A year old, but goes into more detail about the financial firms affected by the
TARP bailout.
http://www.bloomberg.com/news/2010-...2-profit-to-taxpayers-beating-treasuries.html

Does that include the returns we expect on the toxic mortgages we bought from the banks at full price? Are they computing the cost of us lending money to the banks, them buying treasuries since the economy had stalled, collecting interest from said treasuries to post profits, then paying back the loans? Because we paid quite a bit in risk free interest to them in order to get our money back.

 

[Spikesoldier]

The US universities are no longer in the "business" of education. They are in the business o f making money. Just look at the amounts of money that continues to pile up in their endowments. As long as big government will give stupid kids money to go to college, the colleges will continue to raise their prices and take the money.

The highest paid members of these schools is usually the coaches. Why? Because they are the ones that bring in the money to the schools. And that seems, lately, to be all these schools are interested in.....money. Lots of money.

this.

everyone knows when the government gets involved, there is money to be made from the waste. see medicare diabeetus companies informing john q public that hes eligible for a diabetic meter on the government's dime.

and college in america has long not been about academia.

 

[Wreckem]

Texas has a demography and revenue problem. Not a welfare problem. Texas population has out grown revenue, and the problem will continue to get worse.

Here is how Texas ranks.

Total revenue raised: 46/50.
Expenditures: 47th/50.

Enrollment in Public Schools: 2/50
Expenditure per pupil: 44/50
Highschool graduation rate: 43/50
% of population over 25 with high school diploma: 50/50
Enrollment for Higher Education: 9/50

Number of uninsured: 1/50
% of low income population covered by medicaid: 49/50
Per capita spending on medicaid 49/50

I can go on and on. Its not a welfare issue. Its structural problem. Revenue growth hasn't kept up with population growth. Hell revenue growth has barely kept up with inflation.

Basically, Texas is almost dead last in every major metric/category. You cannot exactly say Texas is a welfare state.

 

[Wreckem]

And there was a recent study out that said UT Austin could cut tuition in 1/2 if the botttom 80% of the profs were as productive as the top 20%.

Its not a very accurate study and has more or less been discredited because of its methodology.

It more or less says a professor who teaches two 350 person sections of lets say History 1301 is more efficient than a professor that teaches two 60 person sections of advances courses.

1. You cannot do a direct comparison that way.
2. Those professors with 350 person sections have 3-4 TAs per class.

The study really only shows what everyone already knew. A small percentage of a university faculty teach required, introductory courses to a shit ton of students.

 

[charrison]

Yeah and again, that was a hit job by a Perry lackey. Its not a very accurate study and has more or less been discredited because of its methodology.

Yeah because there is no waste or excesses in education..

 

[Ronstang]

I can go on and on. Its not a welfare issue. Its structural problem. Revenue growth hasn't kept up with population growth. Hell revenue growth has barely kept up with inflation.

Basically, Texas is almost dead last in every major metric/category. You cannot exactly say Texas is a welfare state.

Illegal aliens.

 

[Wreckem]

The US universities are no longer in the "business" of education. They are in the business o f making money. Just look at the amounts of money that continues to pile up in their endowments. As long as big government will give stupid kids money to go to college, the colleges will continue to raise their prices and take the money.

The highest paid members of these schools is usually the coaches. Why? Because they are the ones that bring in the money to the schools. And that seems, lately, to be all these schools are interested in.....money. Lots of money.

You need to qualify that as football coaches, and the occasional ball coach. And if you read their contracts most of their money is paid by sponsorship deals and donations.

Because of title IX they need big time money from football and to a lesser extent basketball to stay in compliance with it.

As for endowments. That doesn't come from tuition, again point out at UT only 9.6% of their operating budget comes from tuition revenue. That comes from donations. Its also paid out as need and merit aid. Universities aren't in the business of making money. They are in the business of spending it.

 

[Wreckem]

Illegal aliens.

So 7% of the population is to blame for Texas being dead last or almost dead last in everything?

 

[Wreckem]

Yeah because there is no waste or excesses in education..

Nowhere did I say that. I just said faculty is not really the issue and that study wasn't accurate.

Most of the waste is spending money on useless shit because if you don't spend the entire budget by the end of the fiscal year you lose whatever you don't and your budget is cut by the same amount next year. Every governmental agency has this same exact problem.

Then you have the ungodly numbers of administrators. Does a library for a school with 30,000 students need a Dean and 4 Associate deans? When prior to 2005 they hand no Dean, just a director, and certainly no Associate Deans. Same as above, every governmental agency has way to many administrators.