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.
Some people want college tuition loans forgiven and eliminated. Others say that this isn't fair as they agreed to the contracts and so forth.
Would you all agree with this compromise?
During the Great Depression FDR wanted to keep people in their homes. He politically couldn't eliminate mortgage debt, but he didn't want more and more people evicted and made homeless either.
So....FDR did two things with something called the HOLC program. He gave people new loans with (1) lower interest rates and (2) extended payback periods. Both 1 and 2 had the net effect of significantly lowering monthly payments and making the payback more manageable so that people could stay in their homes.
On the flip side, the people who took advantage of the program still had to pay back their balance in full.
Why not do the same program today for college students?
(1) All government loans for college will go to 0% interest rates, which will lower their monthly payments.
(2) All government loans for college will have an extended repayment period, which will also further lower their monthly payments.
(3) The principal balance will still be repaid in full.
Would you agree with this compromise?
If we are going to forgive anything we should get the most bang for our buck. That would be credit card debt with the very high interest rates.
4) Going forward, the federal student loan program is abolished in its entirety; and
5) Student loans to be underwritten by financial institutions like any other consumer loan, and be dischargeable in bankruptcy like any other consumer loan.
What collateral does an 18-year-old have? Why would any private financial institution lend them enough money for a movie ticket, much less a college education? I'm assuming that's why loans are underwritten by the federal government in the first place; because otherwise, who would be able to get loans at all?
Of course, a huge problem is that colleges jack up their tuition, knowing that the government will underwrite the loans that make it possible for students to attend. I don't know what the answer is to this issue, but it's definitely a problem.
If the government is going to be involved in doing loans, I'd like to see a mixture of carrot and stick as far as getting it paid back. Make the loan term 15 years at a reasonable interest rate, say 5 percent, and set monthly payments accordingly. If the original principal amount is paid off in 10 years or less, the interest portion is cancelled. Have the interest rate go higher if the original loan (principal plus interest) isn't paid off after 15 years. After 20 years, apply some other type of penalty, I don't know what. Or something like that.
The only loans to be forgiven are those that were fraudulent, mostly trade schools that never delivered any education, I am not bothered by those being forgiven. And prosecute, if possible, the jerks that ran those schools.
I would begrudgingly agree to refinance at lower rates for the majority of loans,
If you have $150,000 or more in loans, and can't repay them due to bad choices and plain stupidity, you can earn forgiveness for a portion for each day you agree to do some public service. Something like
Be placed in a pillory and have rotten fruit and vegetables thrown at you.
Sweep floors at public hospitals on weekends
polish toilet paper holders in the latrines at military boot camps
I'm not in favor of anything unless the revamp the program going forward - and you'll have to apply for the loan, similar to a mortgage, but it would be based on your potential earning of your chosen major.
Status:
"everybody getting reported now.."
(set 28 days ago)
Location: Pine Grove,AL
29,594 posts, read 16,564,108 times
Reputation: 6047
Quote:
Originally Posted by QuakerBaker
(1) All government loans for college will go to 0% interest rates, which will lower their monthly payments.
Payment amounts are standardized based total taken and your income. So in its current state, you wouldnt be lowering the money payments, they would be paying the same amount monthly, it would just be going straight to the principle and no interest.
No, there should be no compromise. There shouldn’t be a compromise as people with significant student loans could have chosen to attend far less expensive schools but did not. Those who were more responsible shouldn't have to bail these people out. To boot, the average student loan monthly payment is far less than the average mortgage payment. I’m tracking that more Americans have mortgages than student loans, yet I don’t hear we are in a mortgage crisis or homeowners demanding mortgage forgiveness.
Status:
"everybody getting reported now.."
(set 28 days ago)
Location: Pine Grove,AL
29,594 posts, read 16,564,108 times
Reputation: 6047
Quote:
Originally Posted by Chuckity
I'm not in favor of anything unless the revamp the program going forward - and you'll have to apply for the loan, similar to a mortgage, but it would be based on your potential earning of your chosen major.
Electrical engineering? Approved.
Gender studies? Denied.
Genders studies majors (depending on the school) are is basically a Health specialist, Communications director, Lawyer.
So they end up being Women's clinic directors, or Health specialist , Therapists, or the portion of a law firm that specializes in women's work place issues.
What collateral does an 18-year-old have? Why would any private financial institution lend them enough money for a movie ticket, much less a college education? I'm assuming that's why loans are underwritten by the federal government in the first place; because otherwise, who would be able to get loans at all?
Banks trip over themselves offering credit cards to students on college campuses, so I'm guessing they see some kind of market potential. Get a job at Target (they offer tuition assistance IIRC), get a parent to cosign, whatever. Taxpayers should not be on the hook to underwrite subprime consumer loans and I'm not interested in lending money to someone a bank deems an unacceptable credit risk.
And if you can't afford college at the age of 18, maybe you should go get a job, work for a while then decide if college is right for you. The idea that everyone must go to college to have a good middle class job is ludicrous. The plumber who fixed my dishwasher made $200 on a 10 minute repair.
Quote:
Originally Posted by bus man
Of course, a huge problem is that colleges jack up their tuition, knowing that the government will underwrite the loans that make it possible for students to attend. I don't know what the answer is to this issue, but it's definitely a problem.
If the government is going to be involved in doing loans, I'd like to see a mixture of carrot and stick as far as getting it paid back. Make the loan term 15 years at a reasonable interest rate, say 5 percent, and set monthly payments accordingly. If the original principal amount is paid off in 10 years or less, the interest portion is cancelled. Have the interest rate go higher if the original loan (principal plus interest) isn't paid off after 15 years. After 20 years, apply some other type of penalty, I don't know what. Or something like that.
I'd be okay with a small bonus if paid off in full early (e.g. more than 5 years before maturity). Total cancellation of interest goes too far. Negative amortization should not even be an option.
Some people want college tuition loans forgiven and eliminated. Others say that this isn't fair as they agreed to the contracts and so forth.
Would you all agree with this compromise?
During the Great Depression FDR wanted to keep people in their homes. He politically couldn't eliminate mortgage debt, but he didn't want more and more people evicted and made homeless either.
So....FDR did two things with something called the HOLC program. He gave people new loans with (1) lower interest rates and (2) extended payback periods. Both 1 and 2 had the net effect of significantly lowering monthly payments and making the payback more manageable so that people could stay in their homes.
On the flip side, the people who took advantage of the program still had to pay back their balance in full.
Why not do the same program today for college students?
(1) All government loans for college will go to 0% interest rates, which will lower their monthly payments.
(2) All government loans for college will have an extended repayment period, which will also further lower their monthly payments.
(3) The principal balance will still be repaid in full.
Would you agree with this compromise?
Meh.
You are just fiddling around with the symptom (and current political hot potato), and not looking at root cause.
Cost of the "education". Way too many schools are still way too expensive, because they are heavily subsidized. Remember when Donald Trump shoveled millions in grants on a yearly renewable basis via fed funding to all HBCU in the country? That is just one recent example.
Schools are now so bloated with ancillary staff and nonsense degrees that do not have to produce actual value for students.
End all tax payer funding to all "higher" education institutions, either directly to the schools themselves or via subsidized loans. The schools will be forced to cut costs by cutting the bloat and then primarily offer degrees that actually produce value for the students.
Genders studies majors (depending on the school) are is basically a Health specialist, Communications director, Lawyer.
So they end up being Women's clinic directors, or Health specialist , Therapists, or the portion of a law firm that specializes in women's work place issues.
Gender studies is typically a mismash of philosophy, history, sociology and literature - I have never, ever heard it described as anything remotely to "health". Since health degrees are typically BS degrees - and gender studies are typically BA degrees.
No gender studies grad is going to be a lawyer, therapist or health specialist without an advanced degree.
Income potential is greater w/ an engineering degree vs a gender studies degree.
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.
