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Student Loan Fairness Act (HR 1330)

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nageov3t

Lifer
Feb 18, 2004
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Nice idea, but you have to think about the secondary effects. Do you know how the market would "handle" that idea? By cutting the availability of student loans by, oh, maybe 90%.

Do you think insurance companies are going to lend $100,000+ to 18-year-olds with no assets, no income, no guarantee of future employment and no collateral, when all they have to do is declare bankruptcy -- at a time when they have nothing anyway -- and then just walk away from it?

You could call your proposal the Student Loan Elimination Act.
my understanding is that it used to work like that, but it was abused by people graduating from med school and law school to dump all their debt.
 

sze5003

Lifer
Aug 18, 2012
13,132
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Roughly calculating my loan repayment over a 30 year period, I would owe about 2400 a month. Jealous?
I feel for you man it sucks but just be glad you didn't major in fashion or arts like many of my friends. Most of them majored same as me in IT and business but refused to learn development so they are stuck doing support jobs ugh.
 

TheVrolok

Lifer
Dec 11, 2000
23,253
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I feel for you man it sucks but just be glad you didn't major in fashion or arts like many of my friends. Most of them majored same as me in IT and business but refused to learn development so they are stuck doing support jobs ugh.
I don't so much mind repaying the debt (well, I would obviously prefer not to, but a debt's a debt). What frustrates me is that due to interest, I will end up paying about a million dollars for my schooling, while my colleges who come from wealthy families will end up paying about 200k. Wealth certainly begets wealth, no?
 

werepossum

Elite Member
Jul 10, 2006
29,876
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Roughly calculating my loan repayment over a 30 year period, I would owe about 2400 a month. Jealous?
LOL Not sure if you're talking about home loan or school loan, but either way, not jealous. My home is small and modest, but it's paid out and I earned it, so it's enough. But congratulations if that's your house.

And with that, I really have to go home and work or I'll be working the rest of the night.
 

sze5003

Lifer
Aug 18, 2012
13,132
277
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I don't so much mind repaying the debt (well, I would obviously prefer not to, but a debt's a debt). What frustrates me is that due to interest, I will end up paying about a million dollars for my schooling, while my colleges who come from wealthy families will end up paying about 200k. Wealth certainly begets wealth, no?
Yeah you are right. All my colleagues had their schooling payed for by their families and never asked to pay back. While my family doesn't bother to ask for money when they are in trouble. At the same time, it does teach you to be way more responsible about things.
 

MarkLuvsCS

Senior member
Jun 13, 2004
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They should just try to adjust the repayment period a tad. Give a year instead of 6 months to being repayments, and for the first year, keep monthly payments less and just increase it by a ~50% a year to make up the difference. I think the biggest issues that come from repayment are the time involved in getting their first real job. At least once people have a decent job, if they work at it, they should be able to easily structure their income to pay off the student loans monthly.
 

TheVrolok

Lifer
Dec 11, 2000
23,253
2,517
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LOL Not sure if you're talking about home loan or school loan, but either way, not jealous. My home is small and modest, but it's paid out and I earned it, so it's enough. But congratulations if that's your house.

And with that, I really have to go home and work or I'll be working the rest of the night.
School. :(
 

pcgeek11

Lifer
Jun 12, 2005
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Why should there be this "personal responsibility" for only student loans? Why are car loans, home loans, home equity loans, revolving credit loans, personal loans, etc... so different and exempt from this "personal responsibility" that exists with student loans?
I agree with you. I never said Only Student Loans.

All Loans should be held to the same standard. You Owe it You Pay it Period.

I have never defaulted on any loan of any type. Do not borrow what you cannot pay.
 

pcgeek11

Lifer
Jun 12, 2005
17,543
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I'd really like to see a college open that was really interested in making an investment in its students. Tighten up admission standards then offer only financially viable degrees and free tuition and books while attending school. Once you graduate you give a percentage of your gross income back to the school for the next 10 years.

This wouldn't be a government mandated thing, just something the school does on its own.

The entire paradigm of college education would be different with a system like this since the college has a vested interest in making sure the student selects a worthwhile degree, attains employment, and earns a lot of money. The school would offer resume writing, interviewing, and negotiating workshops, REAL job placement assistance (not the limp dick garbage colleges offer today), and so on because they want the student to graduate and earn a good living since it increases their return.

Like Indentured servants.
 

OverVolt

Lifer
Aug 31, 2002
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So the government needs more laws to fix the problems caused by ones it already made.

Why does anyone think that will work as intended? Since it clearly never goes as planned.

FAFSA has done enough thus far for the cost please no more. Please! :awe:
 

drebo

Diamond Member
Feb 24, 2006
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It also seeks to replace the current, 10 year “Standard Repayment Plan” for the full amount of the loan balance with the “10-10” plan as the default repayment option for borrowers entering repayment.
This worries me a bit. 10% of my yearly "discretionary" income would be about $6000. That's more than the total amount of my student loans. Why should I have to pay that for 10 years?

Does my 10-10 stop after I've paid it out? Does it keep going for the full 10 years to subisidize other people?

This whole bill sounds like a really dumb idea.

Best way to fix college education in this country is to stop telling everyone that they need it.
 

Mai72

Lifer
Sep 12, 2012
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I met someone who owes $70k in student loan debt. He told me that he isn't going to pay it back. He's going to spend the rest of his life in South Korea. I guess Sallie Mae can't get to him in Asia?

If you're going to take money out for school loans, then it's your responsibility to pay it back.

just my opinion...
 
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OverVolt

Lifer
Aug 31, 2002
14,285
87
86
I met someone who owes $70k in student loan debt. He told me that he isn't going to pay it back. He's going to spend the rest of his life in South Korea. I guess Sallie Mae can't get to him in Asia?

If you're going to take money out for school loans, then it's your responsibility to pay it back.

just my opinion...
You can denounce your citizenship AFAIK.

Probably not a good idea, just saying.
 

zinfamous

No Lifer
Jul 12, 2006
103,500
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Nah. grants fund the research. And the support costs are included as part of the overhead for the grant. I can't remember which school, but one has an overhead cost of 100% (if you ask for $100k as a research grant, you're really asking for $200k to help pay the other costs.)
not only do grants fund the research, but that money also goes to pay support staff salaries for the most part. (department-by-department administrative costs).

I'm still not sure where the skyrocketing tuition costs actually go...
 

the DRIZZLE

Platinum Member
Sep 6, 2007
2,955
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This is a terrible bill. I've posted several times before that the solution to the education bubble is:

1. Allow the market to price the risk for different schools and degrees. This would include making it somewhat easier to discharge student loans in bankruptcy. However, easing the bankruptcy laws while the government is still giving out money indiscriminately is a recipe for disaster that will leave the taxpayers with a massive tab.

2. Increase disclosure requirements for colleges to help potential students make better decisions.
 

Zargon

Lifer
Nov 3, 2009
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What about something like medical school? Get a job and save 150-250k+? Become a physician at 40, 50, 60?
we are just importing them from overseas anyways, so it wont affect that much :ninja:


but seriously. thats retarded and the cost is the problem there. 150k debt to become a dr or lawyer, on top of what, another 50k from undergrad?

so you life is practically ruined till you are mid 40's then you have to start saving for retirement.
 

Zargon

Lifer
Nov 3, 2009
12,245
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This is in my opinion how good government should work - government fronts you some money, you get a good (or at least better than you could afford on your own) education, you are therefore a more valuable member of society, you pay back your loans, government fronts that money to the next Joe or Joan. Thus I never turn up my nose at someone who has student loans, only at those who want someone else to pay back their student loans. One caveat though - one is never a fool to repay what one owes, regardless of whether one has the opportunity to avoid it.
I have a friend that went 60k in debt to get a photography degree, I turn my nose up at him for being stupid, but hes pretty suprised he isnt working for Victoria sSecret or Sports Illustrated at age 30
 
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werepossum

Elite Member
Jul 10, 2006
29,876
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Wow. I hope you're a doctor. I hope you're THE doctor. :D

Although if you went to Harvard or such, a degree in weaving toe knuckle hair might be worth that kind of money, just for the contacts made and the prestige.

I have a friend that went 60k in debt to get a photography degree, I turn my nose up at him for being stupid, but hes pretty suprised he isnt working for Victorias Secret or Sports Illustrated at age 30
Wow again. My ex-wife spend some years as a professional photographer, although at her level it was less education and more being willing to travel around the country taking pre-arranged photographs of people and then selling them said photographs in large, expensive packages. But I do not believe that any schooling one could get for $60K would materially help your chances of landing a plum job.
 
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nageov3t

Lifer
Feb 18, 2004
42,826
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I feel like photography (along with most of IT, art, and theater/music) are fields where students should be encouraged to go to trade schools and apprenticeships instead of getting a 4-year college degree they won't utilize.
 

herm0016

Diamond Member
Feb 26, 2005
7,311
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i got some money from my grandmother passing away, and worked 3 jobs while going to school. i graduated with my last semester on a CC.

you take out loans, you pay them back. i really don't understand how anyone can have a problem with this concept.

people need to know what their degree is worth, before they pay for it. Would you pay 100k for a civic?
 

piasabird

Lifer
Feb 6, 2002
17,183
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Why does the govt want to be a bank and manage all these govt backed student loans? That will never cause a problem! [insert sarcasm here].
 

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