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.
“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.
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”
“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 other big scam:
“General Education requirements”
Oh, we want to BROADEN STUDENT HORIZONS..!
Oh sure you do. More and more ethnica grievance stuff finds its way into these classes everyone has to take, resulting in an Mass Indoctrination Factory.
Plus it’s HIGH-SCHOOL, shifted into college because unionized teachers at the high-school level couldn’t teach them that stuff when they were still there.
Gummint loans shouldn’t apply to the years these scammy gen-ed courses are taken.
Why should white people pay for classes saying they’re evil..?
Same for ethnic studies, diversity requirements.
“If the US University System were a stock, I’d SHORT it.”
—Peter Thiel, famed Silicon Valley Venture Capitalist
The way I remember it, student loans were not that big of a problem until the federal government took over all of them and banned banks from making these loans. I could be wrong.
Purdue University has a page where you can enter a major, graduation date and loan amount to get a payment schedule based on expected pay.
It looks like the major only matters for estimating the wage. Get a $70,000 English job at graduation and your payments will be the same or more than the engineering grads.
adjusting interest rates is the bank’s way of mitigating risk.