Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Sure....why not? Why is it that those who actually had to pay for the money shouldn't be able to also benefit from it?
Why is it that only the bankers should?
Thats great sounding rhetoric that makes everyone feel all warm and fuzzy like you are going to show those big bad bankers, but at the end of the day you are essentially arguing to force them into bad business practices that will make them more unstable again...is that what you really want? We all saw how that worked out a few years ago. I'm not in favor of the banks taking advantage of that situation, and I'm certainly not in favor of forcing them into low cost loans to set up round two of it all.
My daughter is a senior in HS this year. We are getting all the financial paperwork for student loans and such. All of them, they want a co-signer(parents)
If my daughter faults on her loan, it is us the parents that will be legally binded to pay it.
A college loan is still an unsecured loan, co-guarantor or not, with a potential payback term of decades.
Thats great sounding rhetoric that makes everyone feel all warm and fuzzy like you are going to show those big bad bankers, but at the end of the day you are essentially arguing to force them into bad business practices that will make them more unstable again...is that what you really want? We all saw how that worked out a few years ago. I'm not in favor of the banks taking advantage of that situation, and I'm certainly not in favor of forcing them into low cost loans to set up round two of it all.
The banks are going to fail whether I get what I want or not.
I understand you are for the little guy propping up the big guy.and getting nothing in return.
I'm not sure how you stomach that idea as its probably you that is getting screwed but you are in denial.
Again, the average default rate is pretty high, you are paying for the fact that other people are defaulting and the fact that there is no collateral behind the loan.
Rates should be set based on an person's individual credit, not for the entire population just like credit cards and mortgages. The rate can be increased if the borrower defaults or misses payments just like banks do with credit cards.
The banks are going to fail whether I get what I want or not.
I understand you are for the little guy propping up the big guy.and getting nothing in return.
I'm not sure how you stomach that idea as its probably you that is getting screwed but you are in denial.
Are they? So you are predicting systematic bank failure?
You understand nothing about what I said, which was:
Quote:
Originally Posted by t206
I'm not in favor of the banks taking advantage of that situation...
I stomach the idea because the government shouldn't set arbitrary interest rates to "feel good levels" that would defy basic financial and economic sense because that will lead to more bank failures. We need to improve the situation, but arbitrary lowering of interest rates because "its for the kids" and "education is good, everyone has to do it!" All I ask for is logic, not emotional arguments that make people feel good and ignore reality.
Rates should be set based on an person's individual credit, not for the entire population just like credit cards and mortgages. The rate can be increased if the borrower defaults or misses payments just like banks do with credit cards.
Student loans are the same as personal loans, again because there is no collateral, which you can't compare to mortgages which have an actual home behind them as collateral. The following is a link to personal loan rates which are mostly right in that 7-9% ballpark Best Personal Loans - Compare and Apply For Loans Online
As for credit cards, you can get yourself a 0% intro rate for 12-18 months, but most credit card rates are 11% or more.
Again, the 7-9% rate for this law student (the girl that asked the question) is completely logical and rational based on all other rates out there.
It actually doesn't make any sense. The rates are set by Congress and they set those rates back when interest on everything was higher. And saying that higher interest rates will decrease school cost is silly. My graduate school loans are 3.2% and school was a lot less expensive when I was there.
It actually doesn't make any sense. The rates are set by Congress and they set those rates back when interest on everything was higher. And saying that higher interest rates will decrease school cost is silly. My graduate school loans are 3.2% and school was a lot less expensive when I was there.
Interest rates should be based on term and risk. Anything else will end badly. Reduce the cost of money and people will borrow more money, driving prices upward. Do it artificially and you will get a bubble and the bubble will burst. Witness the real estate bust. Hillary is not that smart.
I agree with that. I hate that we insist that "everyone needs to go to college" and it must be a cheap as possible. Make something free/cheap and its value is lost...we see that happening now.
There are those who would say that the value of a college education lies in the knowledge, values and skills one can acquire - not in the exclusivity of the diploma and its associated market value.
Then again, what does academic ideals have to do with college education, amirite?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
