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I love it. If government "loses money" providing a service then it is a failure.
If government "makes money" providing a benefit/service then it is a failure.
Government is supposed to be by the people and for the people. As such, the government does well when the people do well; the government should not benefit from the debt of the people. But our government does, which means things are twisted.
The students that are paralyzed from the fed's college loan practices are the children of the middle and "working" classes, the young and naive who were convinced by their government they should go to college despite tremendous cost because they could rely on the government to help (with low rate loans). They believed it and now they graduate to find themselves drowning in debt...to the government who convinced them to take the plunge! What's more, it seems there is no job (or there's the one they could have gotten with the high school diploma) waiting at the end of the process.
If the "service" the government provides cripples the people who are served, then the service is not a service at all. It is a trap laid out for the naive and needy. It's twisted.
Status:
"everybody getting reported now.."
(set 26 days ago)
Location: Pine Grove,AL
29,568 posts, read 16,556,695 times
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Quote:
Originally Posted by Teaching and Learning
Government is supposed to be by the people and for the people. As such, the government does well when the people do well; the government should not benefit from the debt of the people. But our government does, which means things are twisted.
The students that are paralyzed from the fed's college loan practices are the children of the middle and "working" classes, the young and naive who were convinced by their government they should go to college despite tremendous cost because they could rely on the government to help (with low rate loans). They believed it and now they graduate to find themselves drowning in debt...to the government who convinced them to take the plunge! What's more, it seems there is no job (or there's the one they could have gotten with the high school diploma) waiting at the end of the process.
If the "service" the government provides cripples the people who are served, then the service is not a service at all. It is a trap laid out for the naive and needy. It's twisted.
Your argument makes no sense, the student loan interest rates from the government are cheaper than any bank i have seen.
So how exactly are people being cheated/trapped ?????
The rate is lower today than it was, yes. However, federal student loans cannot be refinanced like private bank loans. This means students who took loans out before the rate was as low as it is today do not have today's low rate but the much higher rate from previously (last year, for example). As such, loan interests from the government are most certainly NOT lower than from private banks.
I think the fed means well but, as usual, they bumble. They really should get the hell out of education and money-lending and many, many other things so they can concentrate on what they do best: Stop. But this time, they need to stop and shrink. Our obese government needs to get back down to fighting weight and avoid doing anything in the meantime. Everything the fed touches (more and more) results in debacle, scandal, or just plain old disappointment.
Your argument makes no sense, the student loan interest rates from the government are cheaper than any bank i have seen.
So how exactly are people being cheated/trapped ?????
Profits going to the banks, get redistributed to the investors and reloaned back out into the economy for businesses to expand, homes to be bought and such.
Thats $41.3 Billion which has been removed from the economy.
I support a break-even approach. The government should not be making profits off the backs of students.
Completely agree. Even a one time fee would be alright. It wouldnt even affect banks because most borrowers only used private loans when they take the max gov loan.
Your argument makes no sense, the student loan interest rates from the government are cheaper than any bank i have seen.
So how exactly are people being cheated/trapped ?????
Of course her argument makes sense. Students are being cheated if the government makes a profit on the student loans that are issued. This should be a break-even business for the government. Profits should be reserved for the free markets. The government should lower interest rates for students if the return is $40+ billion dollars.
Ironically, I would have expected a liberal like yourself to find fault with students being raped and pillaged by interest rates. Isn't that something that liberals absolutely despise about banks??????
The house republicans had to be fought to get it as low as it is now. While the right on this forum are complaining.
Lets see what the right says when large numbers cant pay back because of the low wages a lot of grads are earning.
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