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Why is it that the Repubs want the rates to double? Hmmm, are they afraid of "certain" types of people getting too much education or something? It just makes one wonder...
Student loans right now allow too many people to rack up debt without hopes of payback. If loan rates increase, it will discourage people from taking out debt if they don't have a solid plan to pay it back.
Do you seriously support a system that places thousands upon thousands of americans in debt that they cannot pay back ever year?
Well, there is the danger that too much education will lower the number of people willing to work for min wage, or even less. That may affect some donor's bottom lines.
That's where the hordes of legal and illegal immigrants come into play Bob....as well as the off-shoring to China like those 4 GM plants being built there and GE medical transitioning their business there etc etc etc.
Tons and tons of cheap workers....but don't you worry your pretty little head, it's all the republicans fault, just don't think too hard about it.
Becuase wherever you have government, you guarantee politization.
Having said that and now that its meddling has raised tuitions astronomically, the fed should be out of the student loan busines entirely
On the contrary, the fed should manage federally backed loans completely independent of banks, who offer no value.
Flat interest rates, very low... 1-2% (the same discount rates given to banks when THEY borrow for profit).
GIs and many of our politicians had 2% student loans from the government. Hillary Clinton famously said that such 2% student loans available to her as a student helped her finance her education.
Also, student loan payments should be a dollar-for-dollar deduction on federal income taxes.
Yeah, that's it Bob. Too many of the wrong people getting an education.
Republicans are seeking to get the government out of the student loan rate business. Of course Democrats would oppose such a measure because it would deprive them of one more false narrative in which to gouge Republicans. Democrats don't love students, they hate Republicans. That's what this new "battle" is about.
The government WAS in the student loan business for decades. When I had a student loan in the 1970s, the government guaranteed the private bank loan. The bank was charging 7% back then. If I defaulted, the government paid the bank.
An early decision of Obama's was to eliminate this, heads I win, tails you lose, system. Instead of having banks make money off of students if they pay and have the government lose money if they didn't, Obama decided to have the program turned into a government program that earned taxpayers $50 billion this year alone -- at a lower interest rate than students would have paid.
On the contrary, the fed should manage federally backed loans completely independent of banks, who offer no value.
Flat interest rates, very low... 1-2% (the same discount rates given to banks when THEY borrow for profit).
GIs and many of our politicians had 2% student loans from the government. Hillary Clinton famously said that such 2% student loans available to her as a student helped her finance her education.
Also, student loan payments should be a dollar-for-dollar deduction on federal income taxes.
A degree attained for no practical purpose because cheap/ free money was available to purchase it, is what has no value.
Check out unemployment rates for new grads, why do you want todays youth in financial servitude to the fedguv?
A degree attained for no practical purpose because cheap/ free money was available to purchase it, is what has no value.
Check put unemployment rates for new grads, why do you want todays youth in financial servitude to the fedguv?
The degree obtained is absolutely irrelevant in a discussion on financing education, or how repayment terms should be structured. There is inherent value in education. Retired people go and get educated and degrees.
Those who choose a degree with little prospect for employment will simply have to live with the consequences. As they do now. Only NOW, they do so with high interest rates and the interference of private banks who profit off of same.
Private banks ADD NO VALUE TO THE CURRENT SYSTEM. They also get added protection for student loans made because of no discharge in bankruptcy. Banks themselves, however, can borrow at the fed discount rate, rack up billions buying yachts for executives, and then default and nobody comes out any worse for the wear.
Student loan rates should be set based on the probability of payback. If you are an english major from a tier-3 school, your student loan rate should be in the double digits. If you are an engineering major graduating from MIT, you should get low single digits for your interest rate.
The idea that every person going for every degree gets the same interest rate on student loans is ridiculous.
Student loan rates should be set based on the probability of payback. If you are an english major from a tier-3 school, your student loan rate should be in the double digits. If you are an engineering major graduating from MIT, you should get low single digits for your interest rate.
The idea that every person going for every degree gets the same interest rate on student loans is ridiculous.
Horrible idea. What business is it of the government what you study? Maybe they can craft special incentive packages for in-demand science and engineering degrees, but the standard should be the same.
If you get a degree with low earning potential then you live with the consequences, but you still have to pay back your loan. The only difference is direct lending at low fixed interest rates make it easier for people to pay back their loans.
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