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The government need to get out of this business. If not because of the guarantee, tuition will be affordable. Why do students have to go into debt even going into city and state college?
Yes, government should never be in the loan business.
Look at what happened with Fannie Mae and Freddie Mac. The government started guaranteeing loans from private banks, effectively pre-bailing them out and letting them have a free reign in making loans they knew weren't gonna be paid back. But, hey, as long as the government is backing you up, why not?! Student loans are the same way, it's just another bubble waiting to burst, and wage garnishments are going to hurt the new middle class who'll see reduced wages because their wages are being garnished. So, then, wages are lowered for the rest of their lives. What a recipe for disaster, and I can't believe there are conservatives who fell for the liberal lie. I wonder how many of the conservatives here that disagree with me and the OP and Ron Paul, think ObamaCare is a bad deal? They say well, the students need to go to college and not only the investor class. Well, using that logic, everybody needs a doctor right??
Just because a person cannot bankrupt from a debt does not mean they will ever be able to pay off the loan if they cannot earn enough money to survive let alone make payments. Do we really want to create a debt slave class that is forced to make payments regardless of their income? I guess our financiers want nothing less.
I suggest the law be changed to allow students to bankrupt if they cannot afford payments as scheduled. The payments should be changed to a permanent surcharge on their taxable income and the government should stop guaranteeing any loans.
This system is another speculative bubble that will have to be busts before our financial system can resume its proper function properly allocating investment without any government guarantees. Risk is one of the definitions of Capitalism and our finances require it to be Capitalist instead of high end Socialism.
Look at what happened with Fannie Mae and Freddie Mac. The government started guaranteeing loans from private banks, effectively pre-bailing them out and letting them have a free reign in making loans they knew weren't gonna be paid back. But, hey, as long as the government is backing you up, why not?! Student loans are the same way, it's just another bubble waiting to burst, and wage garnishments are going to hurt the new middle class who'll see reduced wages because their wages are being garnished. So, then, wages are lowered for the rest of their lives. What a recipe for disaster, and I can't believe there are conservatives who fell for the liberal lie. I wonder how many of the conservatives here that disagree with me and the OP and Ron Paul, think ObamaCare is a bad deal? They say well, the students need to go to college and not only the investor class. Well, using that logic, everybody needs a doctor right??
On the flip side, 15% maximum wage garnishment may actually put more disposable income into graduates' hands because massive student loan payments may be more than the garnishment itself, especially low paying jobs.
Look at what happened with Fannie Mae and Freddie Mac. The government started guaranteeing loans from private banks, effectively pre-bailing them out and letting them have a free reign in making loans they knew weren't gonna be paid back. But, hey, as long as the government is backing you up, why not?! Student loans are the same way, it's just another bubble waiting to burst, and wage garnishments are going to hurt the new middle class who'll see reduced wages because their wages are being garnished. So, then, wages are lowered for the rest of their lives. What a recipe for disaster, and I can't believe there are conservatives who fell for the liberal lie. I wonder how many of the conservatives here that disagree with me and the OP and Ron Paul, think ObamaCare is a bad deal? They say well, the students need to go to college and not only the investor class. Well, using that logic, everybody needs a doctor right??
You are correct. People don't appear to understand that subsidizing anything just transfers the cost to somebody else. Government guaranteed loans (mortgage, college, etc) just transfers the cost of those loans to the hard working taxpayers. So our taxes are artificially high to cover the risks of those loans.
Same thing is true for subsidized solar panels, corn, milk, etc, etc.
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