Biggest issue isnt the loans, its why education cost so much. That and health care cost will kill this country.

 

Because the Gov't will lend money. If the Gov't pulled out completely from the Student Loan business the cost of a college education would drop dramatically.

 

Have you ever noticed, about 4-6 weeks after the Gov't announces it will add more money to student loan lending, Colleges and Universities announce tuition rate hikes.......it NEVER fails.

Too many people are caught up in the "college" web. College is not, and nor should it be for everyone. And the number of useless degrees that you can get is astounding. Many degrees aren't worth anything close to what people end up paying for them especially at the small, private colleges. $35-$40k/year for a teaching or social work degree is just plain lunacy. Get rid of the easy college money from loans and the cost of college would have to come down. Part of what you can borrow for college should be related to your future ability to afford to pay it back, like any other loan that you would apply for.

I haven't read all through thread, but I heard a speaker last fall say at a seminar that unpaid student loans and their resulting bad credit will prevent such borrowers from getting mortgage loans, and that this will depress the housing market (and other credit purchases as well). He thought it could have consequences more severe than those of the recession of 2008. If he was right, Congress will probably have to step in.

6 trillion spent fighting in Middle East in the past decade

3 trillion to foreign aid in the past decade.

10 trillion for Wall Street Bailout once it's all over.

 

Cancel all student loans 1.2 trillion. Funny how we will throw money at some things and not others.

 

Not the point of this thread, but to be fair, I think the government made ALOT of interest in the bank bailout. The vast majority of the banks paid the money bank WITH interest. As a matter of fact, the bank I was working at during the bailout time was in great financial shape. The fed called our bank president and said "we are lending you this much money and you will take it". Our president said that he did not need or want it but the fed said he had no choice (he told me this directly). So the bank had to keep the loan on the books for a few years and pay 5% interest on the money (a high interest rate compared to what any bank can borrow money for) before it could pay it back. People don't like to talk about that but the government did OK on that bailout to the best of my knowledge.

6 trillion spent fighting in Middle East in the past decade

3 trillion to foreign aid in the past decade.

10 trillion for Wall Street Bailout once it's all over.

 

Cancel all student loans 1.2 trillion. Funny how we will throw money at some things and not others.

 

Don't get me started on the foreign trade spending though!!!

Not the point of this thread, but to be fair, I think the government made ALOT of interest in the bank bailout. The vast majority of the banks paid the money bank WITH interest. As a matter of fact, the bank I was working at during the bailout time was in great financial shape. The fed called our bank president and said "we are lending you this much money and you will take it". Our president said that he did not need or want it but the fed said he had no choice (he told me this directly). So the bank had to keep the loan on the books for a few years and pay 5% interest on the money (a high interest rate compared to what any bank can borrow money for) before it could pay it back. People don't like to talk about that but the government did OK on that bailout to the best of my knowledge.

 

And the government makes even more interest on student loans - over 7% interest. And for many it starts the day of the loan - not when the student graduates. Basically loan-sharking given the 2% Fed rate. 5% is a good spread.

And the government makes even more interest on student loans - over 7% interest. And for many it starts the day of the loan - not when the student graduates. Basically loan-sharking given the 2% Fed rate. 5% is a good spread.

 

No argument from me that it is way too high. I am so glad my two girls are out of college now and with no debt. This is a gigantic issue that probably does not get talked about enough.

What is the U.S. Number one export? Answer Garbage. We sell Garbage to China. nice.