Posted on 12/06/2017 12:22:05 PM PST by Brian Griffin
There is a college affordability crisis.
My university charges over ten times as much for tuition as when I first went there in September 1975.
I know many academics and loan originators will provide vehement arguments why their feed bowls should't get rationed, but unless college loans are restrained to reasonable amounts there will be Democratic demands for "free" college education that will eventually cost many of us and most future college graduates dearly.
BANKRUPCY BAR
For loans issued after July 1, 2018, only the principal amount(s) borrowed
a. from the federal Department of Education (DoE)
b. to refinance, with no new additional or higher private sector fees payable after issue and uniformly lower interest rates, student loan(s) existing as of that date
c. private and other governmental loans of up to the basic standard limits below in total as of time of the loan issue, co-signed in full by the college, with a 7% annualized life of loan interest & private sector fee cap
less associated interest above 4% and fees and other charges paid after issue shall be exempt from bankruptcy discharge.
[Article I, Section 8: "The Congress shall have power...To establish...uniform laws on the subject of bankruptcies thoughout the United States."]
CAPPING THE AMOUNTS
The basic standard limits a student may borrow from the federal Department of Education for undergraduate education shall be limited as follows:
a. $4,000 for the student's first year at the college
b. $5,000 for each subsequent year up to three at college
c. $6,000 for each subsequent year after said three, for up to four additional years per student, after receiving a degree from a college [graduate loans]
d. $2,000 for each subsequent year after said three, for up to two additional years per student, if no degree has been received from a college [loans when a college education isn't completed in a timely fashion]
These limits shall be adjusted for inflation in the manner Social Security payments are, then rounded up or down to the nearest whole multiple of $100.
The (b) and (c) subsequent year limits for students enrolled in programs authorized to issue degrees sufficient to meet the educational requirements for registered nurse licensure or public school teacher certification in the state of the college shall be doubled.
The (a) first year limit and (b) and (c) subsequent year limits for students enrolled in programs authorized to issue degrees sufficient to meet the educational requirements to become licensed to practice law or be a medical doctor in the state of the college shall be four and seven times larger, respectively.
[This section allows students at good schools like Harvard to borrow more.]
The Secretary of Education shall allow the (b) and (c) subsequent year limits for full-time students be raised to the average amount paid upfront for full-time tuition for the prior year, excluding all grant and loan amounts, when:
a. the school requests it and pays a $10,000 processing fee to the DoE in the manner the Secretary shall specify, and
b. the board of trustees or college president or their equal certifies that average amount paid (accurate to at least 5%)
c. over 90% of DoE loans issued in the fifteen to twenty prior calendar years at the school have been paid off
d. over 90% of DoE loans upon which a repayment has been made are in good standing with the DoE
e. no more than 20% of DoE loans by initial principal value of any year of issue from the school in the prior 20 years are in default
or shall provide a reason in writing to the school why it should not be raised.
TIMELY COURSE PROVISION PROVISION
The limits for federal loans above may be reduced by up to 40% for any college that the Secretary of Education finds to have had a substantial problem in a recent term in timely providing course placements needed for students to graduate on time.
VIRTUAL EDUCATION
Virtual education shall not be eligible for federal student loan issue or any student loan bankruptcy bar.
[It should be cheap enough as to not require federal loans or protection exceeding a $750 bankrupcy petition fee.]
STATE LAW
State law may regulate any and all non-federal/private sector aspects of student loan issue, including that of interest rates, fees, charges and to require colleges (and college-related entities) to co-sign loans related to persons within the jurisdiction of the state.
End it. Let banks make loans that are backed by real collateral.
Then, there is the exploding priciness of textbooks. A little bit of research will reveal the fact that American publishers are no more. Just check out the Pearson Company and its connections and one can understand more about the scams parents are enduring.
When my daughter was going to college, it seemed that the various professors for many of her classes had written a book of his/her own, and required for his/her book to be purchased in addition to the basic textbook.
It seemed like quite the scam to me.
How about a new “rule”: never borrow more than you can afford to repay?
I have a better idea.
Immediately end, cease, desist, quit and stop all federal funding, loans, grants, subsidies and handout to colleges, universities and students.
STOP NOW!
Just like mortgage interest tax breaks are one reason why home ownership is so expensive; this government handout is the key reason why college expenses and tuition is so expensive.
And when you consider the majority of colleges and universities are little better than liberal indoctrination sites for idiot snowflakes - the need to cease this multi-billion dollar waste of taxpayer money is great.
STOP ALL FEDERAL FUNDING OF COLLEGES NOW. TODAY.
Yes, end it, but any bank loan should also NOT be taxpayer insured.
IMO, the best bet is contracts between companies and students (future worker). Biz pays to educate their staff, staff is obligated to work X time for education or pays back biz.
And let them charge interest rates and determine loan amounts by the probability and productivity of the majors. No more undischargeable loans for 10’s of thousands of dollars for crap degrees.
End the government guarantees to banks! Let the banks decide how much money to lend an unemployed womens’ studies major.
Ah but therein lies the problem. The promise of that really good paying job that will pay off that massive student loan.
Maybe a little math lesson and a bit of reality — $300K is equivalent to a home mortgage. How many years does it take to comfortably pay off a home loan — 20 years, 30 years?
Just end the Dept. of Education.
Its another Fannie/Freddie time-bomb waiting to explode
Ya. Its a scam. And the prof’s textbook usually isn’t that great.
$4,000 for the student’s first year at the college
Headline: Republicans Want To Stop Poor From Going To College
Get the government out of it. Let banks decide
* Do we need more “gay black womyn studies” graduates? Or are there already so many that graduates will at best be serving burgers or coffee and not able to repay the loan
* Is it a good idea to loan $50k/year for an “Anthropology” major (a “worst college major” for salary on forbes)? Or is that major only worth $25k/year? If students can only get a loan for $25k, colleges will need to adjust or students will not enter the major (and colleges will need to adjust).
If loans start being given based on probable outcome and ability to repay the loan, everyone wins. (expect people who want a useless major and politicians who want to pander to them) Banks are good at predicting ability to repay -
until the government steps in and yells RACISM, SEXISM, and CAPITALISM SUCKS. And employers will have larger pools of graduates with useful skills. And more graduates will have job opportunities. And I’d bet a lot of college administrators would love to teach and do useful research in their institutions but are restricted by PC terrorist who are supported by government interference in paying for education.
Exactly. The US Government should have no part of college loans.
Once they get out, college prices will drop to realistic levels, or the colleges will shrink or close.
The next shoe that should drop is college housing. Some of the dorms I’ve seen are absolutely luxurious. College towns are full of high end restaurants and stores.
When I was in school, mid ‘80’s, about the best store in town was a Kmart. There were a couple restaurant/bar places that catered to students, 2-3 pizza places and a Burger King. This was a campus with 10,000 students. Dorms were basic and acceptable. I ended up moving off campus as soon as I could. I rented a room from an older lady who was about 80 years old and had three upstairs rooms to rent. Rent was dirt cheap, I made all my own meals.
I haven’t driven through the town in many years and I’m sure it’s changed a lot, not for the better. UI know the college has. A few years ago, this formerly conservative state college opened the Jim Crow Museum of Racist Memorabilia. My wife has sent them some money in the past but not any more.
The worst part of this problem is that “globalization” has either sent many of our good-paying jobs overseas, or made it much easier to traffic foreigners here to do them - so few decent jobs are available to many graduates (even those with traditionally stable degrees). I’m watching trafficked Asian coolies fill financial-sector jobs here in the NYC area, and pity any young Americans trying to get a start in those areas. Just as with the braceros in many blue-collar jobs, the employers would rather hire the imported Asians for the white-collar jobs.
“$4,000 for the student’s first year at the college”
It’s $4,000 federal plus as much the student can borrow privately, of which the first $4,000 of each would not be dischargeable.
Sabbaticals are waste of taxpayers money.
Professors — start working a 40 hour week, and no pay for the summer three month hiatus (unless you want to teach during those months).
Eliminate government loan programs.
Leave the loan programs to private banks, and watch them provide loans at their own peril if not backed by adequate collateral.
Go back to tuition costs relative to that of pre-1970’s when anyone could work their way through college (as I did).
BS. I got a job and laid mine back. If a millennial wants to rack up $50-100k to get a worthless degree that makes them feel good, that’s on them.
So, how about this:
1. Get the Dept of Ed out of the loan business completely
Or, if they want to stay in it
2. Only loan for those wanting a STEM degree. Everyone else gets it for a private lender
Tuition costs will drop like a rock and the number of Pre Roman Feminsit Studies graduates will fall dramatically.
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