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Marco Rubio Has Introduced an Awesome (and Bipartisan!) Student Loan Bill
Slate ^ | July 17, 2014 | Jordan Weissmann

Posted on 07/18/2014 8:19:07 AM PDT by wmap

Here’s the good news: A bipartisan bill has been introduced into the Senate that might just solve the single most pressing problem with student debt.

(Excerpt) Read more at slate.com ...


TOPICS: News/Current Events; Politics/Elections
KEYWORDS:
Comes from Slate not a conservative source
1 posted on 07/18/2014 8:19:07 AM PDT by wmap
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To: wmap

Not only does the report come from Slate, but the proposal is by RIN-ubio.

Sorry, ain’t buyin’ it.

Liberals and sub-liberals (RINOs) can shove it.


2 posted on 07/18/2014 8:21:02 AM PDT by Da Coyote
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To: wmap

Where is the barf alert? Has Mario gone totally nuts?

No one owing a student loan will ever make another payment.

They think Bambi will bail them out.


3 posted on 07/18/2014 8:22:22 AM PDT by shalom aleichem
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To: wmap

A person who didn’t have a job would never have to pay back the loans. Stay at Home Mom not filing jointly or not married to her partner.


4 posted on 07/18/2014 8:22:49 AM PDT by AppyPappy
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To: wmap

The obvious question is why should students who go to elite schools with high tuition be subsidized by blue collar workers who don’t go to college. I vote no. Emphatically. Just more government subsidization of debt which encourages higher tuition, that ends up in the pockets of liberals, and more debt. Looney tunes unless the reporting is wrong.


5 posted on 07/18/2014 8:25:36 AM PDT by jwalsh07
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To: wmap

Lotta people predicted that the Pubbies would offer loan forgiveness, if only to pre-empt the Dems from doing it.


6 posted on 07/18/2014 8:27:41 AM PDT by Buckeye McFrog
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To: jwalsh07
Just more government subsidization of debt which encourages higher tuition

And more reckless borrowing, to boot. When you subsidize something, you will get more of it.

7 posted on 07/18/2014 8:31:30 AM PDT by Leaning Right (Why am I holding this lantern? I am looking for the next Reagan.)
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To: All

The best Student Loan Bill is more dollar bills in the pockets of graduates. There aren’t any good paying jobs.


8 posted on 07/18/2014 8:31:31 AM PDT by r0tten
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To: wmap

More Big Brother government.

The answer to the student loan situation is simple.

Get the government out of the equation and require the borrower to pay the loan back as agreed.

It is not the constitutional responsibility of the government to extort money from taxpayers to help students through college.

A student loan is just another loan to buy something now and pay for it later - like a vehicle, a boat or a home and should be treated as such.

If the borrower has to pay their own loan, and the lending institution has to deal with the financial impact of bad loans, they will both be a little more responsible in seeking ans making loans.


9 posted on 07/18/2014 8:39:01 AM PDT by Iron Munro (The Obamas Black skin has morphed into Teflon thanks to the Obama Media)
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To: wmap

How about this plan Marco? You borrow it .......... you pay it back.


10 posted on 07/18/2014 8:40:46 AM PDT by boycott
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To: wmap

I don’t believe anywhere in history has there been so many 25 - 26 year olds that have never worked a job a day in their lives.

All these government grants and loans are a slacker’s dream come true. Regardless of a student’s academic achievement, there will be a so-called university or college willing and wanting to take the government money (taxpayer money).

This is one reason all these illegals come over here. Our working class are all slacking on government dime until they’re about 25-26. They then wonder why no one has a job for them other than Starbucks. Could it be that they’ve never worked a day in their lives?


11 posted on 07/18/2014 8:48:41 AM PDT by boycott
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To: wmap

The federal government has no business being involved in student loans; and I don’t trust Rubio as far as I can throw him.


12 posted on 07/18/2014 8:50:53 AM PDT by Arm_Bears (Rope. Tree. Politician. Some assembly required.)
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To: wmap
This is why I hate the Republican Party. For far too long, they accept the Left's premise on an issue and offer their own "solution," a solution which doesn't address the fundamental problem and maintains the status quo.

End all federal government involvement in education. From pre-school Head Start to college education and loans. Period.

13 posted on 07/18/2014 8:51:05 AM PDT by Extremely Extreme Extremist
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To: wmap
Here's my plan:

a) Allow student loans once again to be forgiven in bankruptcy. Bankruptcy has pretty severe consequences for several years.

b)With the provision that there will be a charge-back against the school(s) and the bank(s) originating the loans-- they are primarily responsible for 'shepherding' students into borrowing too much money, let them pick up part of the tab.

14 posted on 07/18/2014 8:51:55 AM PDT by pierrem15 (Claudius: "Let all the poisons that lurk in the mud hatch out.")
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To: wmap
The problem with all of these fixes for all of these problems is that we try to do things retroactively. That is wrong. If you make a deal (good or bad), you stick to it.

Now, we could change the deal going forward for new students. That would make sense.

I propose we cap repayment at 10% of yearly earnings with a maximum payback period of 15 years AND make the educational institution a co-borrower on any federal education loan GOING FORWARD. That would solve the problem real quick. If the kid doesn't or can't pay the loan payments, the school eats it. I bet the amount of majors in "Ethnic Gender Studies" will drop dramatically overnight.

A $50,000 loan at 5% interest paid back over 15 years would be about $400 per month. A student would need to earn an average of $48,000 per year over those 15 years to be required to fully pay back the loan. If they didn't, the school would have to pay any short fall.

Problem solved.

15 posted on 07/18/2014 8:54:27 AM PDT by nitzy
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To: shalom aleichem

Yep. They’ll also underemploy themselves through that time, pulling down the economy. Coupled with the Obamacare subsidies, food stamps, etc., there will be little incentive for anyone below the top third or so in earning power to work at capacity for their first 20 years out of school.

What’s next, for them to be on their parents healthcare until age 46?


16 posted on 07/18/2014 8:55:56 AM PDT by 9YearLurker
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To: boycott

Marco just wants everyone to get the same benefits he received.

The Fla GOPe gave him a special party credit card and he used it to supplement his income. He felt no obligation to repay those loans until it was mentioned during his run for the senate. I’m certain he figures, ‘why shouldn’t college students have a similar deal?’ Next, with his views on illegals, it will be, ‘why shouldn’t everyone in the whole world have a similar deal. US taxpaying citizens can pay for it.’

Marco Rubio is showing himself to be a real Mark Kirk.


17 posted on 07/18/2014 8:56:33 AM PDT by Waryone
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To: Waryone

Rubio has been a huge disappointment. The tea party put him in office and now he acts as if he’s never heard of the tea party.


18 posted on 07/18/2014 8:59:17 AM PDT by boycott
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To: wmap
All federal loan borrowers would be enrolled in an income-based program where they paid 10 percent of their earnings each month, with a $10,000 annual exemption. Meanwhile, the government would collect the money directly from workers’ paychecks, just like tax withholding. One potentially controversial part: It would forgive up to $57,500 worth of loans after 20 years, but anything above that amount wouldn’t be forgiven for 30 years. (The current Pay as You Earn repayment program forgives all debts after two decades.) But borrowers who don’t like the income-based option could opt out and set their own payment timetable.

All those people trying to break free of the welfare state by getting an education will just continue to be domesticated livestock until ... until ... well, forrrr-eeeeee-ver.

Thank you, La Raza Rubio.

19 posted on 07/18/2014 9:04:38 AM PDT by meadsjn
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To: jwalsh07
-- The obvious question is why should students who go to elite schools with high tuition be subsidized by blue collar workers who don't go to college. --

An obvious precedent to that question is the issue of how the federal government finds being in the loan business, to be among its enumerated powers.

-- ... more government subsidization of debt which encourages higher tuition, that ends up in the pockets of liberals, and more debt. --

Rubio sees giving away public money as a path to electoral success.

20 posted on 07/18/2014 9:12:35 AM PDT by Cboldt
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To: wmap

“All federal loan borrowers would be enrolled in an income-based program where they paid 10 percent of their earnings each month, with a $10,000 annual exemption. Meanwhile, the government would collect the money directly from workers’ paychecks, just like tax withholding. One potentially controversial part: It would >forgive< up to $57,500 worth of loans after 20 years, but anything above that amount wouldn’t be forgiven for 30 years. (The current Pay as You Earn repayment program forgives all debts after two decades.)”

Since these are `guaranteed student loans’ (the lender is guaranteed repayment) “forgive” means if s/he doesn’t pay, then you and I pay—it falls on the taxpayers’ backs.

I paid on my GSLs for years until they were paid off. And @ 9% interest. And no tax write-off. Screw RINO Rubio and the pony he rode in on. Students are adults when they sign these contracts. Now they want to re-negotiate their agreements?

They either keep their agreement or they don’t. They can’t have it both ways.


21 posted on 07/18/2014 9:41:38 AM PDT by tumblindice (America's founding fathers: all armed conservatives)
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To: Iron Munro
A student loan is just another loan to buy something now and pay for it later - like a vehicle, a boat or a home and should be treated as such.

That's the way it ought to be, but that's not the way it is. Student Loans and Parent PLUS loans hang on extorting payments forever.

The stated reason is that while a vehicle, a boat or a home can be repossessed if the borrower misses payments, they can't repossess a college education.

While that may be so, there is nothing to prevent them from holding transcripts or even revoking degrees. An educational institution which allows some nimrod to run up a $100,000 debt majoring in puppetry (the Occupy Wall Street poster boy) ought to share some of the responsibility just as institution which makes a $50K loan on a car worth $15K would have to.

There are a lot of reasonably priced colleges and universities out there which offer quality education for reasonable tuition. One of them, Hillsdale College in Michigan, even has their own group of lenders to make the loans at rates better than what Fedzilla offers. Why do you suppose that is?

22 posted on 07/18/2014 9:47:38 AM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: 9YearLurker

Yes. All correct. The main things are (a) Keep government out of process, do not guarantee loans, and (b) do not allow students to borrow too much (unless they borrow privately).

I know kids who live on these loans, do not really engage seriously in college full time but enroll in all sorts of fly by night “schools”, tech programs, on-line scams etc which are just set up to help students live off their loans and kickback some to the “school”. Racket. Much abuse. These people are terrible loans risks.


23 posted on 07/18/2014 9:55:23 AM PDT by shalom aleichem
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To: wmap
Meanwhile, the government would collect the money directly from workers’ paychecks, just like tax withholding.

LOL. What could go wrong?
24 posted on 07/18/2014 9:59:59 AM PDT by nhwingut (The Rand Paul Foreign Policy Faction in Congress consists of Rand Paul)
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To: shalom aleichem

Yep—all good points.

If students don’t otherwise have resources, scholarships, creditworthiness, whatever, there are community colleges that can get them through their first two years and state schools that they can attend part-time after that. The states already subsidize higher education well enough without the feds being involved at all.

(And if the states didn’t subsidize it, the market would provide cost-effective programs.)


25 posted on 07/18/2014 10:01:19 AM PDT by 9YearLurker
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To: meadsjn

Part of this thinking it fits the politics and also gets us closer to problem solving. Has anyone been through bankruptcy?It works on main street. Has anyone ever had loans restructured or refinanced? It does work on main street. It is the idea and politics I think needs some pondering.


26 posted on 07/18/2014 10:02:44 AM PDT by wmap
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To: wmap

If Slate likes it, it must be bad


27 posted on 07/18/2014 10:04:31 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: Vigilanteman
If the EPA can garnish wages for digging a well in your own back yard there is no reason why a bank or other lender should not be permitted to garnish wages to recover a student loan in default.

People who whine about having to repay student loans (like Michelle Obama has done) are just wannabe moochers - no better than people who think working taxpayers should pay for their food, housing, transportation, cell phones, condoms or sex change operations.

28 posted on 07/18/2014 10:04:48 AM PDT by Iron Munro (The Obamas Black skin has morphed into Teflon thanks to the Obama Media)
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To: boycott

this kind of funemployment allows them to be artists and writers and stuff... if they were literate of course... I am sure fanfiction will pay someday... or not.

lol


29 posted on 07/18/2014 10:06:38 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: wmap
might just solve the single most pressing problem with student debt

Banning it?

30 posted on 07/18/2014 10:10:34 AM PDT by Jim Noble (When strong, avoid them. Attack their weaknesses. Emerge to their surprise. Hat)
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To: wmap

They should be looking into why college costs so much.


31 posted on 07/18/2014 2:07:03 PM PDT by Sybeck1 (Remember Mississippi!)
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To: Vigilanteman

There are a lot of reasonably priced colleges and universities out there which offer quality education for reasonable tuition. One of them, Hillsdale College in Michigan, even has their own group of lenders to make the loans at rates better than what Fedzilla offers.
***********************************
Agree.

Stop gov. loans to private universities/colleges like Harvard, Yale and many others. Let those dip into their HUGE endowments to give loans, with interest due, to qualified students who only take a curriculum that has a well known earning potential. ...No more of the stupid gender studies, hip-hop music (prof. Marc Hill, Yale), art history and other time wasters. If students want to take such ridiculous courses of study, they can pay full tuition.

Permit gov. student loans to State/Community univs/colleges, with the same requirement that degrees must be in fields of study that have good earning potential; none of the fluff stuff. ...Restrict such loans to only such schools that have a reasonable tuition rate (place a cap on it, depending on prevailing costs of living in the area, or the schools will just keep raising tuition rates).

Students that want to get a useless degree can pay for it but wont be saddled with a loan debt that the earnings from their degrees would not permit them to repay; and, no lenders would be stuck.


32 posted on 07/18/2014 7:06:31 PM PDT by octex
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