Trump administration wants to put a limit on student loan borrowing (dollar, school)

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Originally Posted by T-310

Those jackasses that refuse to repay their loans should be drafted into the military where they work off the loan.

Because indentured servitude is still a thing?

Mind you, voluntary service to get loans repaid is nice. So is canceling loans for people who go into teaching and other types of public service (courts, police, fire department, social services, etc), but Trump and DeVos want to cut that out, too.

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Originally Posted by elvis44102

before Reaganomics degrees were somehow gotten WITHOUT massive debt...while i don't have the specifics i suspect much more tuition was paid for for by state and or federal government...i suspect deregulation free market principles ran up this big debt...the answer would be to turn back the clock before deregulation...gave us the free market mess AGAIN

This is the answer.

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Originally Posted by max210

I don't think anyone is specifically blaming students as you're suggesting. But they are part of the equation, the bank is willing to lend massive amounts of money since it's backed by the .gov, the student doesn't care how much it is, they just need the money, the university sees it as an opportunity to charge massive fees and get rich. The students are young and naive.

Oh, max. People blame students all the time. Call them lazy. Say their degrees are "useless" and that they all just "party" on that money, etc.

I agree with you. There are adults in the room in this scenario who have far more life experience that a young person who just wants to get that degree that they kept being told they needed all the way through school to get any sort of decent job.

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Originally Posted by Rocko20

Loans should be capped at the annual salary you will earn once you get the degree and 5 years of experience. With the exception being doctors.

No more liberal arts majors and gender studies for $150K.

There are people who major in "liberal arts" who make more than 150k a year.

But, I overall do think that borrowing should be tied in some way to the type of degree a person is seeking and whether or not that person plans to go to graduate school.

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Originally Posted by boneyard1962

Because it isn't an either or scenario. Yes the colleges that design courses that can't produce the credits required to graduate are guilty. They then require the student to take electives to make up for the short fall of credits. Not unlike a car dealership selling you a car that doesn't come with wheels or tires. In order to drive it home you have to buy wheels and tires from the dealership...

Why bad mouth the students. Pretty sure most of us heard the saying buyer beware be fore we graduated from High School. Those college students who began borrowing as young adults are matched my barely legal adults putting their lives on the line doing jobs that are beyond dangerous in our Military. No sympathy from me for them. They wanted to wear the adult pants, they get what comes with it. Those kids should be screaming at their parents for not preparing them.

Our country does suck sometimes. It sucks that we allowed our Universities to become snake oil scammers. It also sucks that we produce kids that seem to have no concept that if you take a loan then you will be expected to pay it back.

Do you really think that kids don't think they'll have to pay loans back?

It's more like "they have no clue that the interest will balloon out of control while they try to get that JD or MD or PhD to make more money" that is the real problem.

Or "they have no clue that if they have to quit school to work full-time so they do not wind up homeless, they'll default on the loans and the interest keeps right on accruing."

I think you'd be amazed at how much of the debt on student loans is not the original loan itself, but all that interest.

It's a scam that happened with deregulation.

[Enigma777]

The irony of an admin headed by a corrupt businessman who has stiffed banks on tons of loans of millions of dollars, bankrupted businesses four times and failed at any number of ventures for which he borrowed money is not lost on many.

Can you imagine if the Trump kids had to borrow money to go to school rather than have their father 'donate' a large sum of money so they would be accepted? They would be working in those hotels, not running them.

It's just another sign of the decline of the US compared to other countries that value and invest in educating their population.

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Originally Posted by Kibby

It continues to amaze me that the general public thinks “Banks” Issue student Loans.

WE are the “Bank”. The Federal Government took over all Student Loans in 2010 in order to fund Obamacare.
Those Loans were handed out like candy to benefit Universities and give the kiddos something to do because there were no Jobs. These kids even got SNAP cards. The Loans were constantly renewed and grades didn’t matter, nor did results or even Education matter.

Now they are stuck with them and like most kids ... they never consider the consequences.

Not a single Republican voted for any of this. The Dems had a filibuster proof majority at the time.

Umm... nope. When I was in school years ago, the bank that controlled my loan was Citibank.

If you think Citibank wasn't making money off me, I have a bridge to sell you.

They made a fortune in interest and servicing.

Now, if the government had never allowed this and had continued to always handle government loans, the interest rates would have been minimal and the amounts one could borrow would have stayed lower unless the person was going on to get a degree in something like law or medicine.

Perkins loans always had very low interest rates. Because the goal wasn't to make money off students.

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Originally Posted by Statz2k10

For every story like that there are also probably many women who are single moms because of their own choice of getting pregnant unmarried & not capable of caring for a child without financial issues.

I know a lot of single women are good people but when you are not responsible and your choices lead to pregnancy that shouldn't be other peoples problems.

Of course not, but don't you want them to go out and get a career that keeps them off welfare?

Sheesh.

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Originally Posted by BoBromhal

there are plenty of trades where you can learn as you work as you earn.

I completely agree - I doubt many disagree - that the cost of college has gone up too much.

But nobody "needs" to borrow $100K to go to college to get a degree of questionable utility.

Now, I'm assuming that there are in-state publicly-supported universities like we enjoy in NC. And that a HS student who EARNS their way into one of our top 10 gets into one of the top 10. And from there, they can get a relevant degree that produces a job that allows to pay back any money they couldn't work for or get grants for during their college years.

True, but most don't "borrow" the 100k. It just winds up at that amount or higher due to the sky-high interest rates that were allowed over the past couple of decades.

Prior to that, rates for student loans were very low.

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Originally Posted by BoBromhal

this is nonsensical. Let's start from the back - who's been calling students "evil"?

then, how do you know that "plenty of conservatives" strategically defaulted...but apparently not "liberals"? What IS "plenty"? And did so in the method you claim - buy a house, NEVER make a payment, sock away all their money, go bankrupt, and go right out and pay cash for another house?

Oh, come on. I'm not saying it's a political issue. I'm saying people with means (who tend to lean conservative, especially in the south) were quite fond of the "strategic default."

And, take a trip over to the Education forum here to see how hard people rag on lazy students every time student loan reform comes up.