Posted on 05/12/2019 3:30:12 AM PDT by reaganaut1
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Purdue and a few other universities have come up with I.S.A. programs that could point the way forward. They assess different rates and repayment durations depending on the borrower’s major. If you’re a chemical engineering major at Purdue, you enjoy better terms than if you study English: Under its I.S.A. schedule, chemical engineers are expected to repay $33,000 at the rate of about 8.5 percent of their income for seven years and four months, while for English majors it’s almost 15 percent for nine years and eight months. But these university I.S.A.s are meant to supplement rather than replace student loans.
Now private capital is starting to find its way into I.S.A.s, through a handful of online computer science training programs. With names like Pathrise, Thinkful and the Lambda School, these “career accelerators” provide tech companies with certified coders and provide participants with a credential in months, not years. Students in these programs can pay by way of an I.S.A. that is financed and serviced by investors gathered under their own Silicon Valley-style names like Leif. By my estimate, the private I.S.A. sector has yet to reach 1 percent of the $100 billion-plus in annual higher-education lending, but it’s growing fast.
A company called Big League Advance has started lending to algorithmically approved minor-league baseball players; something similar might appeal to college athletes whose scholarships fail to cover all their costs. From there, it’s only a few steps before investors sets their sights on other reliable investments: Ivy League finance, Stanford biology, engineering at flagship state universities.
What’s the appeal of an I.S.A. over a regular student loan? From a capitalist’s perspective, the federal government has a weakness: It treats all borrowers the same.
(Excerpt) Read more at nytimes.com ...
A 15% loan for ANYTHING at a time when the Fed is charging 3% or less is criminal.
I agree. There would also be fewer decent students who don’t really know what they want to do with their lives, getting degrees in soft majors with no real chance of employment unless they also get graduate degrees, wondering if they’ll ever really be adults with a real job and a chance of paying back their loans.
Repayments rates are largely based on socio-economic factors. English majors may be paying back at 1.5% because they work in a school system that may pay off their loans after 10-15 years.
actually let’s think out of the box. no student loans.
No government support of higher education.
The billions of dollars of endowments that the elite universities have need to be put into play. Let them fund themselves and tax them to fund others.
No fed funding of schools will drop prices like rocks and get rid of many many schools
This hyper school industrial complex is a legacy of the Clinton years. His big gift to leftists everywhere.
15% of income
Per Fedzilla, at the end of fiscal year 2015, the market value of the endowment funds of US colleges and universities was $547 billion.
They can loan out their own damn money.
“Subprime children”. What a bunch of communist crap (the deceptive headline, I mean). These are adults not children, and the idea is simply to treat loans for education like every other loan. This is the right way to do it, and this will fix MANY problems. No more 200k debt for a GPA 2.2 student majoring in critical theory sociology. Loans should reflect (1) likelihood of this major in this school to net a job, (2) student’s performance. If a student is “sub-prime” they need to pick a major that will lead to employment and/or work harder. This will lead to people who don’t belong in college to find other careers, eliminate indoctrination masquerading as fields of study, improve quality of education through competition, and help recover the value of having a college degree in the first place.
“From a capitalist’s perspective, the federal government has a weakness: It treats all borrowers the same.”
This is more BS from the socialist NYT.
In fact this is being proposed specifically by socialists because student loans “aren’t fair” because they’re handed out like candy (which socialists demanded) by the government only (which socialists demanded) and now they’re on the hook to be paid back (which socialists hate)
So now they’re supporting indentured servitude.
Want to start a brush fire?...start floating the idea that Libs want to focus on taxing accumulated college endowments to fund investments on poverty programs(like retirement funds are being targeted by some of these shysters)and see what happens to Elite liberal altruism!
The main point here is that if a tiny little college like Hillsdale (Michigan) can afford to line up their own group of lenders and not participate in the federal loan program at all, then what is stopping other institutions, many with much richer endowments, from doing the same?
absolutely.
We need to get fully out of funding education and let the markets prevail.
Went to a public college graduaiton yesterday
Embarrassing on how self congratulatory the leftists all were about their commitment to diversity.
Most all of the diversity folks had a free college ride. Except it was not free, it was on the backs of you the tax payers.
Perhaps their commitment should be to giving people adequate education at lower costs.
And pulling back the goverenments right to license everything.
State licensing has turned into guilds preventing compitition.
Just heard about this.
An excellent idea, but one that I expect to be banned. Most of the college industry is geared against STEM degrees. My old school keeps floating the idea of adding a 20% surcharge to the STEM tuition for “fairness”
Two examples:
On Thursday, when I was out shopping, I saw an older woman taking a photo of a younger woman in a graduation robe (using an apartment complex’s fountain as a background). The younger woman, in addition to the robe, was wearing a stole in kente cloth with panels that read, “Black Graduates Matter.”
Yes saw those too.
and many Somolis Women in headresses and graduation caps.
They are the cause celebre for leftists here.
>>State licensing has turned into guilds preventing competition.
You can say that again!
It’s crazy what all we require a license to engage in as a job.
PROFESSIONS ARCHITECTS & INTERIOR DESIGNERS
ATHLETE AGENTS
ATHLETIC & ENTERTAINMENT COMMISSION
ATHLETIC TRAINERS
AUCTIONEERS
CEMETERIES
CHIROPRACTORS
CONDITIONED AIR CONTRACTORS
COSMETOLOGISTS AND BARBERS
DIETITIANS
DISPENSING OPTICIANS
ELECTRICAL CONTRACTORS
ENGINEERS & LAND SURVEYORS
FORESTERS
FUNERAL DIRECTORS & EMBALMERS
GEOLOGISTS
HEARING AID DEALERS & DISPENSERS
IMMIGRATION ASSISTANCE
LACTATION CONSULTANTS
LANDSCAPE ARCHITECTS
LIBRARIANS
LOW VOLTAGE CONTRACTORS
MASSAGE THERAPY
MUSIC THERAPY
NURSING
NURSING HOME ADMINISTRATORS
OCCUPATIONAL THERAPISTS
OPTOMETRY
PHYSICAL THERAPISTS
PLUMBERS
PODIATRY
PRIVATE DETECTIVES & SECURITY AGENCIES
PROF COUN/SOC WORK/MARRIAGE
PSYCHOLOGY
RESIDENTIAL AND GENERAL CONTRACTORS
SPEECH PATHOLOGISTS AND AUDIOLOGISTS
USED MOTOR VEHICLE DEALERS
USED MOTOR VEHICLE PARTS
UTILITY CONTRACTORS
VETERINARY MEDICINE
WATER & WASTEWATER TREATMENT PLANT OPERATOR
http://sos.ga.gov/index.php/licensing
“I think student loans OUGHT to priced to reflect the risk of default. “
When Congress passed legislation that companies had to fund their retirement plans the same law applied to the federal government. Suddenly, the federal government had to show where the funding for their elaborate federal retirement plans was coming from. Congress decided that, instead of raising taxes they would use student loans. Congress forbade banks from granting student loans giving themselves the monopoly on this money cow. Then, they changed the bankruptcy law so that judges are forbidden from forgiving student loans. This guaranteed money caused colleges to raise their prices because the students weren’t paying for it and were too stupid to consider the future costs.
Here is the hilarious part. Virtually all Democratic candidates are running on a platform of forgiving student loan debt. They can’t. If they do than they suddenly need to find the huge amount of money to replace that debt to fund federal retirement programs. The alternative (horrors!) is to reduce the size and cost of government.
Ninety-five percent of students should simply work their way through, with community and online classes for the first two years, then just the last two at a four-year school they can afford—if it makes sense for them to move on. Those racking up the debt shouldn’t be bailed out by taxpayers.
the guilds require more and more credentials because they are at state level peopled with professors and others in education in their field, and godknows you have to keep the education maw fed.
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