Posted on 02/06/2014 7:32:35 AM PST by SeekAndFind
Elizabeth Warren wants paying for college to be like paying for a car.
No, she doesn’t want mandatory airbags in colleges or Presidents’ Day sales on tuition. Instead, the senator from Massachusetts wants students to be able to refinance federal student loans.
Unlike a loan to pay for a house, a vehicle, or just about anything else your heart desires, you can’t refinance a student loan. The result is that student loans have become a rare way for the federal government to generate revenue, making $66 billion in profits off them between 2007-2012. Warren told The Daily Beast that she is discussing legislation with colleagues that would allow students to refinance their federal loans at rates currently offered to new borrowers. The legislation will be introduced in the coming weeks as Warren continues to work with other senators from both parties on the exact language.
Warren has long been working to reduce the $1.2 trillion in student loan debt currently held by Americans, seeing it as deeply problematic that the federal government makes a huge profit on student loans. In her opinion that “does not reflect our values” and presents a threat to the economic recovery. Warren cited a recent report that cited student borrowing as hurting the economy because the debt overhang kept many purchasing cars or houses.
(Excerpt) Read more at news.yahoo.com ...
We already have them; they are called "professors" and almost all are liberals.
And here I thought she was going to suggest those going into default have their diplomas repossessed.
Hehe, that right there is funny!
If she wants to make it more like a car loan, let’s give the borrower the same deal that every kind of borrower gets — a fixed price for the “product” that doesn’t go up 5-plus percent every year for the four or five years involved.
Could the lender repossess a college education?
Not a bad idea at all. Allow students to default on the loans; allow the colleges to cancel the degree, or the credits earned if a degree wasn’t earned there. Seems perfectly fair to me.
Who refinances a car loan?! A car loan gets paid as soon as you start using the car, not 4-8 years later. If you stop paying on the loan, your car gets taken away. I don’t think what she wants has ANYTHING to do with a car loan.
Sounds reasonable to me.
After all, our universities are giving students malaise-era GM type quality when they get their boxtop lib arts degrees...so why not treat those degree purchases as if they were a poorly engineered, even more poorly constructed car?
All we will do is make it easier for colleges to charge even more for schooling. What is needed is an incentive for colleges to get more efficient..turn all those empty buildings into productive assets. Our Universities are some of the more unproductive institutions in the country. They need to be reformed.
having fewer paying students..paying less would help.
Before I buy a car, I have the money. I pay cash.
I worked my way through college--never went into debt--never took a dime from any government. I graduated debt free. I didn't go to expensive private colleges. I went where I could afford. I was a millionaire at age 40, multimillionaire at age 43, retired at 53. I'm an average man of average intelligence. If I can do it, anybody can do it.
The process already exists.
Quit paying the loan.
When the bank bitches, develop workable payment scheme
The problem with college tuition is the principle not the interest rates. Students graduating with $100,000 in debt is appalling. I don’t care what the interest rate is. Wake me when Warren addresses the principle.
“I worked my way through college”
So did I, but.....have you checked what your college tuition is today?
You don’t get the title til you make your last payment.
I told you guys a month ago that Warren will be the Dem nominee in 16. She’s going to pull a ‘Barry’ on Hitlery!
No matter how you pay it, college tuition is cleverly disguised income redistribution.
God Bless you!!! Congrats!! You sound exactly like my husband....worked thru college, left without any debt, no one helped him, and he worked VERY hard for 39 years and retired at 52 also!!
All other considerations aside, it tells you the kind of world that Elizabeth Warren lives in that she considers $66 billion over five years a “huge profit” on $1.2 trillion in loans. That’s roughly $13 billion a year, or one percent yearly interest. Not even enough to cover inflation.
Why wouldn’t you be able to refinance a student loan? Can’t you pay them off with the proceeds of a different loan, like a personal loan, a second mortgage or even a loan on a car with a clean title?
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.