Posted on 01/15/2018 1:13:25 PM PST by reaganaut1
The best lessons for a student is to honor your debt.
The best thing they could ever do is make student loan debt dischargeable under normal bankruptcy law. That would force lenders to be very very tight fisted in making loans. And without free-flowing loans tuition would have to slow its explosive growth
A new system should be put in place requiring their school to back any student loans for all future loans should be dischargeable. Schools will switch focusing on money-making subjects almost overnight.
Then existing students should be given a 2-year amnesty from interest on their existing loans during which period their payments will go towards paying off the balance of the loan, not interest. After that, it’s business as usual on existing loans.
There are a ton of “Private for Profit” institutions (I won’t call them schools) where the only requirement for entry is the ‘student’ has the ability to get a student loan.
The FedGov imposed some minimal standards - finding work after graduation, for example, that did close many of the worst scammers...
However
Many, if not all, of the State sponsored Universities, were to be held to the same set of standards - that is, finding employment with 6 months of graduation in the field of study - they would be cut off from these same loans.
Another complication is students **stupid enough** (I repeat myself) to use student loan money to pay rent, buy food and in some cases automobiles etc - then cry over how they can’t afford to live and still pay the loan.
The FedGov does share *some* of the blame by not having tighter loan rules and followup, before the ‘student’ gets completely buried, to ensure they are really getting an education - doubtful in too many cases.
Student debt is the next **big** debt balloon waiting to explode on the economy and cause yet another ‘crisis’.
The Feds should say,”We’re selling all the loans we have to Arab slavers. It’s up to you to decide how to pay them back.”
You’re a little bit right and a little bit wrong. There was a time not very long ago that an average kid with a good solid summer job and maybe part time work during the year could pay their way through State School.
The unjustified explosion of tuition rates have made that nearly impossible today
The Feds should sue the Profs to claw back some of their ill gotten gains....
For all the posters here going on and on about how they did it dent free 30 years ago, that’s awesome for you but it really has no bearing whatsoever on the argument today. There is a massive difference between when it cost you 10-15k for the degree and 109k plus now. Kids can’t pay that on a part time job or even a full time job. The problem is that the collusion w/lenders and the institutions has made the costs skyrocket. Not to mention that school loans are the only loans that are non dischargeable.
It doesn’t take a genius to see that the system is in need of repair. Allowing school debts to be discharged in bankruptcy is hardly giving the snowflakes a free ride. It would also force the lenders to tighten their standards which would be good for everyone. Last but not least there is nothing wrong with the concept of forgiving loans after 12-15 years of payments. The original loan has more than been paid off with a lot of profit. The government doesn’t need to enslave the youth forever.
I once heard Candidate Trump make some comments re: this issue. His idea had never previously occurred to me.
He stated that the Feds keep increasing funding for these colleges/universities and all these institutions keep doing is never-ending expansion, new buildings, new programs, and all the while, increasing student tuition and “fees”.
So his idea was to cut off ALL funding to these places, and instead, give aid directly to students, who in turn, would shop for the most value for their money.
I thought that was an interesting and good idea.
If Trump wants to be re-elected for life he should promise a forgiveness of student loan debt if somoneone has been paying for 5 years and has been employed for five years.
That's an interesting idea. Question though. If one gives relief of interest for that time frame, what happens to the interest on US debt for that money for the same time period? Seems like the tax payer is now paying the interest. Was that your intent with this idea?
There is a solution. The government needs to establish a “fitness for further education “ test. They will only guarantee loans for students who pass.
If they don’t Pass — get a job.
Invite all the black organizations to participate in developing the test. No racism — just merit.
Feds: Welcome to the real world. You incurred the debt for your liberal arts courses in classical studies now pay up.
And it’s not our responsibility to fund your social security, medicare, recreational medicine, etc.
I don’t recall voting on any of those programs.
How about a hair coloring major in Cosmetology school loan
I agree in principle, but I also just gave you a contemporary example of a student who is graduating in May with very manageable debt.
I just remembered a recent conversation with a friend. He said his kids could all take out loans because they were interest free.
He was shocked when I told him they are relatively high interest, around 6% and some begin to accrue interest the minute you take the money.
He has no kids in college yet and hadn’t really looked at it.
Going to college to go to college or for the experience is kind of stupid. Going for a hard science or legitimate degree is worthwhile.
The dung flinging monkeys will assail you
For that. But you are right.
It really is rich to hear all of you baby boomers (the most worthless generation this country has every had) screaming about the Constitution and he us millennials are stealing from the government when two-thirds of the federal budget goes to funding your trips to the Indian Casinos and five doctor visits a week.
A long look in the mirror is way overdue for you guys.
... some of these “students” are gaming the system. They are in it just for the money without having a job. They know they can get the loan, and a living allowance. They know they can get food stamps. They know exactly how long they have to attend a class and then drop the class and still keep the $$. Makes one think that maybe if we made “college free for everyone” this gaming the system would stop, because who would want to go if there wasn’t any money to be gamed. We could close down this industry down on both sides (the ‘students’ and the Colleges).
Very good point. In all honesty there should be an approved list of degrees that are eligible for financial aid. If you want the other fluff degrees you pay your own way.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.