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Started By
Message
re: Trump administration proposes limit on student loan borrowing-Democrats Explode in Anger
Posted on 3/20/19 at 8:09 am to MrLSU
Posted on 3/20/19 at 8:09 am to MrLSU
I attended a conference a few years ago and sat in on a session presented by someone from the American Bankruptcy Institute and at the time there was a little over one trillion in student loan debt with something like 90% backed by the federal government.
There was a young attorney there that had $300K+ in student loans, working for a federal agency that was involved in a forgiveness program and her concern was paying the taxes due when the debt was forgiven.
Last I looked, student loan debt is 1.5 trillion and rising. Without being able to discharge student loan debt in bankruptcy, this will have a significant impact to the economy.
There either have to be reforms to the federal programs or a change to the bankruptcy code. It probably makes sense to do both.
There was a young attorney there that had $300K+ in student loans, working for a federal agency that was involved in a forgiveness program and her concern was paying the taxes due when the debt was forgiven.
Last I looked, student loan debt is 1.5 trillion and rising. Without being able to discharge student loan debt in bankruptcy, this will have a significant impact to the economy.
There either have to be reforms to the federal programs or a change to the bankruptcy code. It probably makes sense to do both.
1
Posted on 3/20/19 at 8:15 am to MrLSU
Good Trump.
Posted on 3/31/19 at 2:51 am to NOLA Tiger
quote:
attended a conference a few years ago and sat in on a session presented by someone from the American Bankruptcy Institute and at the time there was a little over one trillion in student loan debt with something like 90% backed by the federal government.
There was a young attorney there that had $300K+ in student loans, working for a federal agency that was involved in a forgiveness program and her concern was paying the taxes due when the debt was forgiven.
Last I looked, student loan debt is 1.5 trillion and rising. Without being able to discharge student loan debt in bankruptcy, this will have a significant impact to the economy.
There either have to be reforms to the federal programs or a change to the bankruptcy code. It probably makes sense to do both.
That loan is like a death sentence basically
Posted on 3/31/19 at 4:06 am to MrLSU
Privatize it and make it dischargeable in bankruptcy so lenders will have to vet the loans they make like other forms of debt.
Posted on 3/31/19 at 4:26 am to davyjones
quote:
Dems need to keep the leg irons on as many folks as possible....it's what their whole system is based on. Then they swoop in and save the day, so they claim...
They do a very good, no, an exceptional job of this and they are very close to the Fundamental Transformation of this country. This is likely to be done by 2024.
Posted on 3/31/19 at 7:03 am to aTmTexas Dillo
There should be a cap.
And if I recall, there were already some forms of caps in the past where part of the loans were federally backed at crazy low interest rates (subsidized loans), if you qualified, and higher rates if you needed more than what your family financial situation was (unsubsidized).
That way it kept a checks and balance on the system. It still allowed a low income family a pool of money who happened to get into a private school, but if you were middle class or upper class you would have to take more risk by using higher student loans. Or even have to get your parents to get into the loan action by using a PLUS loan.
Now if I am correct there was no hard cap and ways to game the system. I can recall one of my high school teachers (late 90’s) tell me that when they were a student (80’s), someone had cancer and they were living their last days through the student loan system. They stayed as a student for years knowing that they would be gone before having to pay one cent of it back.
Ever since the Obama take over of the student loan program, it sounds like the feds just took everything over and put it at the subsidized rates backed by nothing except the Full Faith and Credit of the US.
I also believe there should be a split in the loan program, where loans would be issued separately for individuals going to to private and public schools.
There should also be a program that maybe the states can get involved in with the state schools that would create a reverse version of the Louisiana TOPS program which would be loans instead of grants issued the to students with the intention of having that student stay and work in the state for X number of years otherwise the loans would need to be repaid.
And if I recall, there were already some forms of caps in the past where part of the loans were federally backed at crazy low interest rates (subsidized loans), if you qualified, and higher rates if you needed more than what your family financial situation was (unsubsidized).
That way it kept a checks and balance on the system. It still allowed a low income family a pool of money who happened to get into a private school, but if you were middle class or upper class you would have to take more risk by using higher student loans. Or even have to get your parents to get into the loan action by using a PLUS loan.
Now if I am correct there was no hard cap and ways to game the system. I can recall one of my high school teachers (late 90’s) tell me that when they were a student (80’s), someone had cancer and they were living their last days through the student loan system. They stayed as a student for years knowing that they would be gone before having to pay one cent of it back.
Ever since the Obama take over of the student loan program, it sounds like the feds just took everything over and put it at the subsidized rates backed by nothing except the Full Faith and Credit of the US.
I also believe there should be a split in the loan program, where loans would be issued separately for individuals going to to private and public schools.
There should also be a program that maybe the states can get involved in with the state schools that would create a reverse version of the Louisiana TOPS program which would be loans instead of grants issued the to students with the intention of having that student stay and work in the state for X number of years otherwise the loans would need to be repaid.
This post was edited on 3/31/19 at 7:27 am
Posted on 3/31/19 at 7:18 am to BestBanker
quote:
Make university co-sign
This - that alone would dampen the damage
Posted on 3/31/19 at 7:21 am to PsychTiger
quote:
STEM Majors: No Cap Gender/Race Studies: $5.00
God yes, at least we'd have a respite from the new terminology these twits orgasm every other month.
Posted on 3/31/19 at 7:35 am to MrLSU
Good and bad. Feds need to get out of student loans entirely. It should look something like this:
Steve graduates high school with a 3.8 GPA and a 29 on his ACT. He wants to go into finance. He can’t afford all the tuition at a public university. Chase Bank sees that Steve could be a good banker, so they elect to pay for his tuition.
To maintain this, Steve must make a 3.0 every semester, stay out of jail, and work as a teller at Chase to learn his profession. When Steve graduates, Chase provides him a position and he must maintain employment with Chase for a set number of years, or he is liable to incur the costs of his tutition.
And Uncle Sam stays the frick out and allows the markets to work.
Steve graduates high school with a 3.8 GPA and a 29 on his ACT. He wants to go into finance. He can’t afford all the tuition at a public university. Chase Bank sees that Steve could be a good banker, so they elect to pay for his tuition.
To maintain this, Steve must make a 3.0 every semester, stay out of jail, and work as a teller at Chase to learn his profession. When Steve graduates, Chase provides him a position and he must maintain employment with Chase for a set number of years, or he is liable to incur the costs of his tutition.
And Uncle Sam stays the frick out and allows the markets to work.
Posted on 3/31/19 at 8:06 am to fjlee90
quote:
To maintain this, Steve must make a 3.0 every semester, stay out of jail, and work as a teller at Chase to learn his profession. When Steve graduates, Chase provides him a position and he must maintain employment with Chase for a set number of years, or he is liable to incur the costs of his tutition.
Yeah that doesn't sound like a system that would be abused at all.
Posted on 3/31/19 at 8:14 am to Magician2
Tuition is not spiking to due athletic facilities. Those are almost all privately funded through donations.
Tuition is spiking because the number and compensation for administrators is also spiking, universities had to upgrade technology infrastructure (think of having to computerize all knowledge and make it functional), but lropbably the number one reason for the spiking tuition, there has been an unlimited supply of student loans.
Capping that will result in slowing down the artificially inflated tuition growth.
Tuition is spiking because the number and compensation for administrators is also spiking, universities had to upgrade technology infrastructure (think of having to computerize all knowledge and make it functional), but lropbably the number one reason for the spiking tuition, there has been an unlimited supply of student loans.
Capping that will result in slowing down the artificially inflated tuition growth.
Posted on 3/31/19 at 8:16 am to Gaspergou202
quote:
Max the loan out in comparison to the average taxable income of a graduate with that degree after 5 years post graduation.
Engineers get thousands.
Gender studies a buck fify.
Or tie the interest rate to the school's default rate. Then colleges have an incentive to:
1) Keep costs within reason
2) Not offer useless majors
3) Help alumni find jobs
Posted on 3/31/19 at 8:18 am to NYNolaguy1
quote:
Grad school is not that expensive... I am paying right now less than $3k/course for my grad class.
Where are you taking your classes and do you have an assistances hip?
[/quote]Do people really not have that kind of money to just pay in cash?[/quote]
Let’s say you take 6 hours a semester. No most people don’t have $6,000 just laying around, especially if you’re going to grad school
Posted on 3/31/19 at 8:20 am to MrLSU
The giant money making machine that is higher education will not be happy.
Every time you hear them scream "for the children" remember its "for the money".
Posted on 3/31/19 at 8:20 am to Bestbank Tiger
quote:
Or tie the interest rate to the school's default rate. Then colleges have an incentive to:
1) Keep costs within reason
2) Not offer useless majors
3) Help alumni find jobs
A better plan is to get the federal government out of the loan business completely.
If people want to pay with a private loan for a "useless" major, then they should absolutely be able to
I am a history major and got great value out of my degree, but it would probably fall into the "useless" category you described.
This post was edited on 3/31/19 at 8:21 am
Posted on 3/31/19 at 8:23 am to Oilfieldbiology
Christ, after five years of lurking this is what drives me to create an account.
Making College More Expensive: The Unintended Consequences of Federal Tuition Aid (notice that article is from 2005)
Obama nationalized the student loan industry about a decade ago, and the crisis appears... Oh, not too many years later. Student loans turned into Freddie Mac and Fannie Mae a la 2008 (and what they're turning into again.) Outsource risk to the Feds (taxpayers) and therefore the money train never ends, and neither does the debt. Tuition goes up in concert.
Slightly off topic, when TOPS was approved when I was at LSU, I guaranteed that fees would increase much faster than tuition because of TOPS. And it did. State shifted costs, but gave tuition to families for "free." (TINSTAFL, bitches.) Nationalization of student loans accelerated the problem of someone graduating with a basket weaving degree with way too much debt to pay it off given the income.
Making College More Expensive: The Unintended Consequences of Federal Tuition Aid (notice that article is from 2005)
Obama nationalized the student loan industry about a decade ago, and the crisis appears... Oh, not too many years later. Student loans turned into Freddie Mac and Fannie Mae a la 2008 (and what they're turning into again.) Outsource risk to the Feds (taxpayers) and therefore the money train never ends, and neither does the debt. Tuition goes up in concert.
Slightly off topic, when TOPS was approved when I was at LSU, I guaranteed that fees would increase much faster than tuition because of TOPS. And it did. State shifted costs, but gave tuition to families for "free." (TINSTAFL, bitches.) Nationalization of student loans accelerated the problem of someone graduating with a basket weaving degree with way too much debt to pay it off given the income.
Posted on 3/31/19 at 8:27 am to JCdawg
quote:
Only majors in need should qualify for student loans,
I keep seeing this parroted, but colleges were not originally designed to be jobs training programs.
The rise of engineering and business schools have made a lot of people look at Universities as job programs, which is why they fail so miserably at this goal.
University was supposed to be a place where the brightest individuals could congregate, debate, sharpen their intellect and advance knowledge. Because of the animosity for the STEM majors (Tale of Two Cultures) and because of the PC culture permeating through academia (Thanks hippies) they are failing at their original purpose as well
Posted on 3/31/19 at 8:31 am to MrLSU
There should be caps based on major. And rates by gpa.
Oh, but the injustice!!
Oh, but the injustice!!
Posted on 3/31/19 at 8:38 am to LemmyLives
i Think you and I are in agreement that federally backed student loans are the reason tuition spiked, but I can’t tell if you are agreeing with me or calling me an idiot.
Maybe I need to take out a loan to go back to college to learn
Maybe I need to take out a loan to go back to college to learn
Posted on 3/31/19 at 8:41 am to Jcorye1
quote:
Yeah that doesn't sound like a system that would be abused at all.
Because it’s more likely that the current government will not be abused?
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