Posted on 08/25/2022 6:16:16 PM PDT by ChicagoConservative27
On Thursday’s broadcast of CNN’s “New Day,” CNN Chief Business Correspondent and host Christine Romans stated that under President Joe Biden’s student loan cancellation, “the winners are the colleges that just keep raising tuition again and again and again.” And the plan doesn’t address the root cause of student loan debt, the massive cost of college.
(Excerpt) Read more at breitbart.com ...
Universities give millions of dollars to the democrat party candidates. There would be no student loan bailouts to universities if universities gave millions of dollars to the assistant democrat party.
Colleges are just hedge funds with guaranteed deposits and a laundry out back to pay the commissions for the scam.
Leftist universities overflow with administrators, academic educational staff and students who are defiantly Leftist. Proud to sign on petitions to have Trump declared mentally unfit to serve, reparations to blacks and defunding police.
Now, can they afford the money instead of the taxpayers for the tuition matter? Well, it’s a tight budget squeeze from the budget along with tens of thousands in tuition plus fee and housing profits, but maybe dip into the endowments making investment profits:
Harvard $40.9 billion.
University of Michigan $17 billion (grew 41% during the pandemic lockdown in Michigan).
University of California $19 billion.
And so it goes.....
I would be okay with price controls for these thieves
Just as they raised the price of electric cars to meet the rebate, college will raise tuition another $10,000
how bout basing loans on the percentage of employment after graduation?
high employment degrees get priority, angry dyke studies not so much... like pay for it yerself
Of course. More money begets more money.
And to add to that, the colleges are letting in under qualified “students” who are wasting “scholarship” money in part to satisfy diversity nonsense.
An interesting blog on the “History of Student Loans” with a timeline. I have pasted an excerpt below but link for full article is below.
The main takeaway for me is pretty frightening - Total Student Loans according to this piece from 391 billion in 2005 to 1.7 trillion in 2021. Gee, I wonder where all that money went?
1958: Federal student loans are first offered under the National Defense Education Act to help the United States compete with other countries—namely the Soviet Union. High school students who showed promise in mathematics, science, engineering, or foreign language, or those who wanted to become teachers, were offered grants, scholarships, and student loans.
1965: The Higher Education Act is established to provide “Educational Opportunity Grants” to colleges recruiting students with considerable financial need. The Higher Education Act also establishes the Guaranteed Student Loan Program, also known as the Federal Family Education Loan Program or FFELP, which allows banks and private institutions to provide government-subsidized and guaranteed loans to students.
1966: The National Association of Financial Aid Administrators is created to monitor financial aid throughout the nation.
1972: The Basic Educational Opportunity Grant, which would come to be called the Pell Grant, is created to help in-need students attend college. Senator Claiborne Pell was instrumental in its creation.
1992: The Higher Education Amendments of 1992 create the FAFSA, the Direct Lending program, and unsubsidized Stafford loans, which meant that now students had to cover interest costs while in school rather than the federal government. Up until this point, the federal government was subsidizing student loans. We are beginning to see the modern-day student loan system.
1993: The Student Loan Reform Act officially implements the Direct Lending program. Under this program, the government can now directly lend to student loan borrowers, instead of through a private institution, which had been the only system since 1965 (FFELP).
2005: The Higher Education Reconciliation Act reduces loan fees from 4% to 1% and allows graduate students to take out PLUS Loans. Outstanding student loan debt is now at $391 billion.
2008: Credit market problems stemming from the Great Recession forces many private lenders to back out of FFELP as they no longer have the financial ability to provide loans to college students. Outstanding student loan debt is now at $639 billion.
2010: Legislation proposed under the Obama administration eliminates FFELP and now requires all new federal student loans to be Direct Loans as part of the Direct Lending Program, which was launched back in 1993. At this time, private lenders begin offering private student loans to students independently from the government. Outstanding student loan debt is now at $811 billion.
2012: Total amount of student loan debt passes $1 trillion.
2021: Outstanding student loan debt now sits at $1.7 trillion. In March 2020, the coronavirus pandemic pushes the federal government to put all federal student loans in pandemic forbearance, which means no payments are required and interest won’t accrue. In January 2021, the newly formed Biden Administration extends pandemic forbearance until October 2021.
2022: In August, the Biden Administration announced student loan relief for borrowers. This relief comes in the form of up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt cancellation to non-Pell Grant recipients. To be eligible, individuals must have an income less than $125,000 ($250,000 for married couples). The administration also announced that the pause on federal student loan repayment would be extended through the remainder of the year. In addition to this relief, a new income-driven repayment plan was proposed that would cap the monthly payments on undergraduate loans to 5% of a borrower’s discretionary income (half of the rate borrowers currently pay).
https://lendedu.com/blog/history-of-student-loans
For those curious, the website linked seems to be a couple of guys who started blogging about various financial products available to consumers. I had never read it but checking dates listed in the excerpt they appear to be accurate.
We are drowning in debt and everyone seems concerned about it except our politicians...
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