Posted on 04/28/2017 3:53:52 PM PDT by mdittmar
WASHINGTON – U.S. Senator Dick Durbin (D-IL) joined more than 130 Members of Congress calling for Secretary of Education Betsy DeVos to reverse a decision to rescind Obama-era memos on student loan servicing reforms. The reforms had included new consumer protections for borrowers and improvements to the quality of federal loan servicing.
(Excerpt) Read more at durbin.senate.gov ...
Durbin.....term limits.
Ummm.... no.
It's like every time I read there were 1,000 dead and injured, I want to scream, ok how many dead, how many maimed for life and how many with injuries from which they will substantially recover.
Default - no chance of repayment - and delinquant - slow but paying - are different. One's a loss and one's an inconvenience.
all service providers in the student loan program are doing everything they can to put students and families first ahead of the profit
Permanent failure to repay principal is not a loss of profit, it's a loss. It's like your renter paid rent late or your renter burned your house down.
I got an idea....if we have such an out of control student load debt problem, how about getting goobermint out of stuff that’s none of their business and let banks loan on the basis of creditworthiness and the projected monetary value of the degree? Then maybe people wouldn’t be living in Mom’s basement with $150K in student loans and a degree in left handed basked weaving that took them six years to get. (because they’d be forced into pursuing a worthwhile major or not get the money)
The question is why do these kids enroll in private colleges that are very expensive to attend. Most state schools are much less expensive to attend. They graduate from these high priced colleges and expect to step into $100k/year salaries and unless you get a law degree or a PHD in STEM that ain’t likely to happen.
I think the schools should take the risk for at least 1/2 of the loan and come up with 1/2 of the loan amount. All repayments should be split equally between the school and the other lender. You will see the school invested in the ability of the student to repay.
Hey dick, elections have consequences!!!!
Well, that might work this time around, but who is going to lend students money when the government says your profits are the last thing we think of. Companies that do not make a profit soon go out of business.
Great respone, well said
Imagine anyone in a constipated government bureaucracy "doing everything they can"
What a hilarious assertion.
America runs on profits
Students are foreclosed because they endanger America by endangering profits
“how about getting goobermint out of stuff that’s none of their business and let banks loan on the basis of creditworthiness and the projected monetary value of the degree? “
When Congress looked into the loans what they probably found was well qualified students were getting loans and students who had insufficient background to get into college were not. Then, they discovered that the majority of qualified applicants were white or Asian and that the majority of unqualified applicants were black. They then set about making sure that the process was not only fair as to who got the loan but also racially fair. (I think the presumption was that some (many?) blacks were actually qualified but not getting the loans because they were black.) They set up a quota and in order to fill the quota of blacks they had to lower the standards. This allowed unqualified whites and unqualified Asians to also get loans.
Students who have a hard time making the grade in STEM courses gravitated to “Studies” programs which had no hard grades because all opinions count therefor how do you grade somebody down?
Once you take a system that is optimized for one thing, getting loans to qualified applicants, and try to tweak it for political purposes, the entire system collapses. We are dealing with that collapse. It’s the same as Fanny and Freddie Mac loans going to people who would never be able to pay them back. The student loan crisis could be just as bad as the housing bubble.
It’s a simple thing. You get a loan,you pay it back;so it behooves a person to be pretty certain that possibility exists or the loan is not granted. To be able to pay back a loan,future employment must be such as to make it a very likely possibility that this will happen. Some jobs must depend on getting training on the job as the pay is not enough to support a person & repay a loan.
It's not a simple thing, actually. The whole racket of overpriced university level education paid for through student loans is fraudulent. You want a college education, say in electrical engineering. Well you pay $50,000 per year in tuition and take out a loan. Then you discover after you graduate the salaries are suppressed through H1B hiring of foreigners, who by the way have their educations paid for by their governments.
It's a mess that the over-indebted 22 year olds did not make.
Obama had 8 years in office to do whatever he wanted. Why is this suddenly an issue now?
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