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Posted on 11/14/2011 4:14:34 PM PST by dennisw
The Public schools have done their job well.
Tragic, really, how easily America has given up her freedoms for “free” babysitting, and the resulting loss of the heritage all children of America were entitled to.
This is moronic. The only way a lender will hand over large sums of money without collateral is if the debt cannot be discharged through bankruptcy. The problem isn't the banking lobby - it's politicians who want to use the banks to lend money to their constituents without any regard to their demonstrated ability to repay those loans.
In fact, I’d say the problem isn’t the banking lobby - it’s the education lobby. Students will go school regardless of whether loans are available. What loans affect is (1) student indebtedness and (2) the amount of money people in the education industrial complex are paid. The bigger the loans, the higher the salaries of the educrats, and the more money these educrats have to funnel towards Democratic political campaigns.
Wait a minute. My understanding is that student loans are guaranteed by the federal government.
That means that the bankers don't need to game the legal system. They were still getting their money back when a student loan could be discharged in bankruptcy.
The law prohibiting discharge of a student loan protects the federal government, and therefore the taxpayer. The law was enacted because too many students were declaring bankruptcy soon after they finished school and effectively stiffing the federal government (and taxpayers).
The "students" were gaming the system, and this law shut them down. The banks were simply the middleman.
I posted another reply: I don't think the banks needed to worry about that. Student loans are guaranteed by the federal government.
If a student loan is discharged through bankruptcy, the federal government picks up the tab, and the taxpayers get stiffed.
In virtually every school district across the nation, pension manipulation runs rampant.
The following is a report commissioned in NJ - during the Corzine administration, go figure. So this was prepared for corrupt Democrats (warning, be in a relaxed and apathetic mood before you read this - it’s just a drop in the bucket).
http://www.state.nj.us/sci/pdf/SCIHigherEdReport.pdf
Grabbing all they can is the national pastime of the education extortion industry.
After all, it’s for the kids, right ?
That’s the deal. To banks, it’s just a loan, that’s the business they’re in.
When lending money, one gets as many co-signers and guarantors as possible, right ? Whatever idiot will guarantee someone else’s loan - you give’m a pen, smile, and say sign here. It just makes the portfolio of loans worth more, as the collection rate gets closer to 100%, which, after all, is what a bank needs to remain solvent, a collection rate somwhere near to 100%. Loans are assets to the bank. They need to get all the interest due plus the principal.
This is trouble with most sovereign debt today (including trillions of dollars in U.S. treasuries); the governments can only pay redeem the bonds they have issued by selling more bonds. They have no other way to pay the principal back as it comes due.
Exactly. The Universities are more to blame than anyone.
And the market may not even get a reacharound out of the deal.
The University scam is right up there with the housing scam. None of those kids knew what the were signing up for...just like Jose the janitor making 12 bucks/hr signing a 300,000 mortgage.
Having been abused by the system..none of them will be supporting it. Occupy is the tip of the iceberg.
“..or payoff?????”
DING DIG DING WINNAWINNA!!
501c3’s..the “not-for profit” IRS designation...=laudromats
Anyone making $12 an hour knows they can’t afford a $300,000 mortgage.
Anyone taking out student loans to pay for a private college education at $45,000 a year knows it’s not a good investment.
Anyone running up $25,000 in credit card debt knows they’re going to have trouble paying it off.
The concept of personal responsibility is in short supply - even here at a conservative site.
As a side note, is there anyone here who can convince me that it is a mistake to pay off a fixed rate massive student load with an existing variable rate home equity line at HALF the interest rate?
(And the equity line is not essential for emergencies due to savings).
Cheers!
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