Skip to comments.My Student Loan Reform Proposal
Posted on 08/02/2019 10:57:45 AM PDT by Brian Griffin
1. Limit new federal student loans to:
a. $15,000/first, second, third, fourth year - college education on a state/regionally/nationally accredited engineering track or domestic licensing/certification law teacher/nursing/physician assistant track,
b. $8,000/first year - general college education,
c. $10,000/second, third, fourth year - general college education,
d. $5,000/additional year, but to no more than $40,000 for any student in total student loan indebtedness - undergraduate college education [students taking more than four years to graduate]
e. $12,000/additional year - general college education, four-year college degree already earned by the student,
f. $25,000/first/second/third year - bar acceptable, state/regionally/nationally accredited law school education,
g. $40,000/year - domestic licensing law acceptable, state/regionally/nationally accredited dentist/medical doctor education.
2. The yearly limits of shall be adjusted for inflation as are federal income tax rate thresholds.
3. Reduce the yearly limits by the higher of:
a. 20%, if the college has in the prior academic year frequently been unable to timely provide its students with courses needed to graduate in the normal timeframe to earn a degree,
b. the percentage of federal loans previously granted to the college that were in default/deferment, as determined by the federal Department of Education, at a time within the past year.
4. Semester loan limits shall be half of the yearly limits.
5. Term loan limits shall be the yearly limits divided by the usual number of terms per academic year.
6. Require colleges, and their holding companies, to co-sign associated new student loans, if federal or if federal bankruptcy student loan exemption is to be applied.
7. Limit future federal loan originations for attendance at any educational institution to the value of real property (and half that of third party publicly traded securities) fully secured to the federal Department of Education as collateral.
8. Allow new private student loans signed or co-signed by a person at the time of issue related to the student by blood, adoption or guardianship to be subject to federal bankruptcy discharge ten years or more after issue, excluding deferment periods, less:
a. one month per 1/10th interest rate percentage above four,
b. one month per 1/100th of the net loaned amount in debt add-ons, such as points, fees and charges.
So we’d be back to only the rich going to college? Brilliant!!
1- those who borrowed, pay it back.
2- no more federal student loans
the Constitution does not permit the government to confiscate my money and lend it to someone else.
I have been thinking about this and came up with this:
Let them wipe it out with bankruptcy, And the Government will pay 1/3 of the loss and the bank eats the rest.
They bailed out crooked bankers, why not show they care about the little guy too. This will be cheaper and, to be fair, a lot of kids really were hoodwinked.
Your proposal is too complicated.
My proposal: Simply make the college co-sign for 50% of a students loan.
So if a college accepts a student who wants to major in 8th century French poetry, fine. But then make that college share in the pain of that stupid decision.
If you can crawl into a public library you can learn enough to be a nuclear physicist ... if you have the desire and drive ...
So wed be back to only the rich going to college? Brilliant!!
It used to be that you could work your way through college with a job on the side and a summer job. It should return to that.
And College is not a necessity to succeed anyway.
My plan worked.....go to class 1/2 day and work 1/2 day. Upon graduation, no student loan to repay.
It’s not just student loans. Back taxes and support payments also exempt from bankruptcy. A federal garnishment law could limit the total garnishment from income (e.g., to 50 percent of income when making the payments would be a hardship), and so provide relief from excess indebtedness without revisiting why certain debts are exempt from bankruptcy. Such a law should identify priority of claim (e.g., #1 current support payments, #2 other current obligated payments, #3 back support payments, #4 back taxes, #5 back student loan payments, #6 other back obligated payments). Furthermore, there’d have to be provisions for interest on back due amounts, and for mortgages and other secured debts.
Try going into an interview saying “I learned it all at the library.”
You are limiting commerce, which is essentially the liberal line. If there is a lender who wishes to lend a consumer money and a consumer who wishes to borrow it, why should Big Brother government stand in the way?
Your solution does nothing to address the underlying problem. Much like many healthcare proposals which are focused on how to PAY for health care, you are ignoring the aspect of “why does it cost so much?”
The truth is that society has placed a premium on getting a college degree. Ironically, many degrees just wind up being useless to the career people find themselves in.
We’ve also got the mistaken notion that “everyone deserves a college degree.” False. Many people aren’t even smart enough for college. We’ve marginalized trade skills, though, and so most see college as the only way.
There is no easy solution to this problem except THIS:
Let an entire generation of Americans suffer with the mistake they made, chasing a degree at great expense, and then discovering that it was generally useless. What will happen is that these people will tell their children, “Oh, no - don’t make the same mistake I made! Do not take out $300k in student loans so you can get a Music Theory degree. That’s just dumb. If you want to be a chemist or a doctor - fine. Those are technical skills which require higher education.”
Eventually, enough parents will dissuade their kids from chasing useless degrees and these schools which have spent BILLIONS on construction projects to expand their campuses will start to see empty classrooms. The law of supply and demand will kick in and costs will come down again.
UH - I should also point out that FEDERAL student loans shouldn’t even be a thing, and is one reason why this is a problem in the first place.
Who mentioned Yale?
Abolish the Dept of Education and all programs related to student loans.
No. More. Spending.
I’m sure you’ll get hired if you say,”I went to the library a lot” in your interview.
Who mentioned Yale?
I worked full-time and went to school part-time.My employer reimbursed the cost of the class upon a passing grade of B or better.
Took me 7 years to graduate with a degree in Engineering Physics (BSEE & BS Physics)
There is no need for student loans.
If you’re borrowing the money...you are doing it wrong.
Used to be a bank would only give you a mortgage if they thought you could pay for it and the house’s value was more than the mortgage amount.
Why don’t they do the same with student loans? Is the college degree worth what you want to borrow? Will your future job allow you to pay it back?
By the way, if they forgive student loans, then I want to be reimbursed for 4 years of college that paid for each of my three kids.
It used to be
But we don’t live in past times. Things and times change with
each new generation/era.
Have you priced community college tuition lately? It’s not 1983 anymore.
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.