Do we need a student loan bailout?

[cornell]

Just rember that with lower payments, the interest is piling up faster. Good that you are keeping up at the same rate.

I could be wrong, but it sounded to be that OP's payments decreased because he had a variable rate loan and interest rates are so low right now.

 

[Henry Rogue]

Millions of students signed their lives away at the depth of the recession. They took out more student loans than they could ever afford to repay. Many of these student loans are backstopped by government, meaning that the government will pay for any balances that students cannot repay in the future.

So why not bail out student loans now?

If the government is going to bail people out anyway, doesn't it make more sense to do it now? Bailing out students would help boost aggregate demand and stimulate consumption, improve consumer spending, and get the economy out of its current slump. If the end result is bailouts, why not today?

Haven't read all the posts yet, but I have a very unaustrian unhazllitt idea. Instead of all you students asking for bailouts, why don't you petition your government to price fix or prosecute the M*****F***ing PRICE GOUGERS!

 

[oyarde]

Henry may be onto something, Universities take tax dollars, they pay prof's 3 figures for a few hrs work per week , they set prices, the govt gives the loans, whole thing smells immoral....

 

[jclay2]

Student loans cannot be excused via bankruptcy with limited exceptions.

http://www.finaid.org/questions/bankruptcyexception.phtml



More info at link.

hence, the problem.

 

[Zippyjuan]

Henry may be onto something, Universities take tax dollars, they pay prof's 3 figures for a few hrs work per week , they set prices, the govt gives the loans, whole thing smells immoral....

Taxpayer support of public universities has been declining- that is one reason tuitions have been rising- to try to make up the difference.

http://online.wsj.com/article/SB10001424127887324539404578342750480773548.html

Tuition at public colleges jumped last year by a record amount as state governments slashed school funding, the latest sign of strain in the U.S. higher-education sector.

The average amount that students at public colleges paid in tuition, after state and institutional grants and scholarships, climbed 8.3% last year, the biggest jump on record, according to a report based on data from all public institutions in all 50 states to be released Wednesday by the State Higher Education Executive Officers Association. Median tuition rose 4.5%.

The average state funding per student, meanwhile, fell by more than 9%, the steepest drop since the group began collecting the data in 1980. Median funding fell 10%. During the recession, states began cutting support for higher education, and the trend accelerated last year.

Rising tuition costs are "another example of the bind that public institutions are in," said Sandy Baum, a senior fellow at the George Washington University Graduate School of Education and Human Development. "Unless we make public funding a higher priority, the funds are going to have to come from parents and students."

At Pennsylvania State University's main campus, in-state undergraduate students receiving financial aid paid an average of $21,342 after grants and scholarships in 2010-11, according to the U.S. Department of Education, up 12% since 2008-09. State funding now accounts for less than 14% of the school's educational budget, down from as much as 62% in 1970-71. "When the appropriation is cut, tuition rises," a Penn State spokeswoman said.

In addition to raising tuition, many states have pared spending. The California State University System declined to take the vast majority of transfer students this spring and has turned away about 20,000 students who qualified for admission during each of the past three years, a spokesman said.

 

[oyarde]

Taxpayer support of public universities has been declining- that is one reason tuitions have been rising- to try to make up the difference.

http://online.wsj.com/article/SB10001424127887324539404578342750480773548.html

Naturally , I want zero of my tax dollars gong to these places.

 

[Henry Rogue]

Taxpayer support of public universities has been declining- that is one reason tuitions have been rising- to try to make up the difference.

http://online.wsj.com/article/SB10001424127887324539404578342750480773548.html

bs

 

[Zippyjuan]

bs

Why?

 

[Henry Rogue]

Why?

Because it was the subsidization that created bad business models in the first place. Schools could trim their fat, but instead choose to see how forgiving the public will be. My idea is a bad one, because fixing the price lower will create even a more false demand, but since the general public is not interested in understanding the problem from the beginning and only reacts to emotion. I thought I might give them something to react to. So I'm starting an educational anti price gouging movement to scare the crap out of the schools of higher learning.

 

[Zippyjuan]

They have been making cuts as well as raising tuition.

http://www.nytimes.com/2012/06/02/u...atus-of-universities.html?pagewanted=all&_r=0

LOS ANGELES — Class sizes have increased, courses have been cut and tuition has been raised — repeatedly. Fewer colleges are offering summer classes. Administrators rely increasingly on higher tuition from out-of-staters. And there are signs it could get worse: If a tax increase proposed by Gov. Jerry Brown is not approved this year, officials say they will be forced to consider draconian cuts like eliminating entire schools or programs.

For generations, the University of California system — home to such globally renowned institutions as Berkeley and U.C.L.A. — has been widely recognized as perhaps the best example of what public universities could be. Along with the California State University system and the state’s vast number of community colleges, higher education options here have long been the envy of other states.

But after years, and even decades, of budget cutbacks from the state, that reputation is under increasing threat. University leaders, who had responded typically to earlier budget cuts with assurances that their institutions were still in top form, now are sounding the alarm. In trying to rally support, they openly worry that their schools do not offer the same quality of education as a decade ago.

“I’d be lying if I said what we offer students hasn’t been changed and that there hasn’t been a degradation of the learning environment,” said Timothy White, the chancellor of the University of California, Riverside, which has had record growth in recent years. Last year, plans to open a medical school on the campus were shelved after state budget cuts.

While there are more students than ever, the number of academic advisers has dropped to 300, from 500 a few years ago, for more than 18,000 undergraduates. Courses that used to require four writing assignments now demand half that because professors have fewer assistants to help them with grading papers, something other campuses have implemented as well.

In the last year, the state has cut $750 million from the system’s budget. This year, for the first time, the system receives more money from tuition than from state aid — but that only makes up for roughly a quarter of the cuts from the state. Over all, the budget is the same as it was in 1997, when there were 75,000 fewer students enrolled.

 

[Henry Rogue]

They have been making cuts as well as raising tuition.

http://www.nytimes.com/2012/06/02/u...atus-of-universities.html?pagewanted=all&_r=0

That won't continue if students get bailed out, You like looking up stats, How many cents on the dollar does big oil make? How many cents on the dollar does Apple make? How many cents on the dollar does big education make? You curious? I am.

 

[Henry Rogue]

Colleges, institutions of higher learning, or price gouging capitalists

Accusing Colleges and Universities of Price Gouging isn’t going to popular with some people, but:

Yesterday I posted about Educators, Colleges and Universities taking advantage of supply, demand, their own as well as government propaganda in order to coerce them to get a higher education.. I also pointed out these wonderful Institutions of higher learning are doing a great job of teaching Socialism while they practice the worst kind of of Capitalism;

Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair. In precise, legal usage, it is the name of a crime that applies in some of the United States during civil emergencies. In less precise usage, it can refer either to prices obtained by practices inconsistent with a competitive free market, or to windfall profits. In the Soviet Union, it was simply included under the single definition ofspeculation.

The term is not in widespread use in mainstream economic theory, but is sometimes used to refer to practices of a coercive monopoly which raises prices above the market rate that would otherwise prevail in a competitive environment.[1] Alternatively, it may refer to suppliers’ benefiting to excess from a short-term change in the demand curve.

Wikipedia http://en.wikipedia.org/wiki/Price_gouging

The Government, Educators and Parents start telling kids they can’t possibly succeed in life without a college education in 2009 Jack Hough, SmartMoney did a piece “Is a college degree worthless?” that points out some flaws in the propaganda. The short version is the inflated cost of college, the time spent being a student, instead of earning money and the interest on huge student loans aren’t offset by the amount of additional income a person with a degree earns during his life time..

As luck and coincidence would have it, Gregg over at Your Daddy’s Politics happened to spot this handy little chart

Starting from the same baseline, The cost of a college education has inflated at three time the rate of everything else except Medical Costs.. A loaf of bread that might have cost 49 cents in 1978 now costs $1.79. a year in a private college that might have 3,600 in 1978 now costs close to $40,000 and the Education Curve is getting stepper..

Any Wonder the kids are screaming?

Wages haven’t come close to that top line, in fact they haven’t matched the general rate of inflation, let alone the inflation in Medical or College costs. Thanks to the propaganda, The kids are convinced without a degree they’ll end up living in a slum or under a bridge some where.

It’s easy to explain what happened, like the kids, parents and employers believed the educators propaganda. Employers don’t care what someone knows, or how much experience they have, as long as they have a piece of paper…

I recently listened to a Social Worker with 28 years of continuous field experience, not office, but in the home. hands on, direct person to person, dealing with gang-bangers, field experience. She’d been told that in order to keep her job she needed to go back to college and get her Masters Degree..

As a result of this sort, colleges have no shortage of customers, desperate to give them money. On top of that they have banks willing to loan the money, irregardless of any cost to value calculation because the government is backing the loan.. The colleges are going to get paid regardless of the price they charge or the skill level of their graduates. It’s perfect set-up for price gouging.

What’s so funny about it, is these price gouging capitalists work so hard to teach their students the virtues of socialism and communism. Here’s an example from Conservative Daily News

Repeat After Me: “I am a Marxist Puppet Preacher from NYU.”

NYU Economics Professor, Preaching Marxism at OWS Meet professor Richard D, Wolff, (preaching at OWS above) who[supposedly] teaches college students economics at NYU. Mr. Wolff believes he has come up with a new plan to promote Marxist ideology from within the United States educational system. Mr. Wolff, like all Marxist professors, is trying to re-write the history of Marxism in an attempt to make it more appealing to America’s youth under the guise of “ a new approach to the political economy.”

That’s from Conservative Daily News they have a good post up about this guy, i suggest you read it here

http://conservativedailynews.com/2011/10/repeat-after-me-“i-am-a-marxist-puppet-preacher-from-nyu-”/



All things considered the kids have a point about the loans, they’re being robbed… and the Banks have a role in it.. not the role the kids believe they have.

Before the problem can be fixed the price gouging by colleges and universities has to be addressed, given the mood of these kids, if they figure it out, their anger may get redirected at their schools, that might be ugly.

http://grumpyelder.com/2011/10/colleges-institutions-of-higher-learning-or-price-gouging-capitalists/
Nice little graph for you at the link.

 

[oyarde]

That won't continue if students get bailed out, You like looking up stats, How many cents on the dollar does big oil make? How many cents on the dollar does Apple make? How many cents on the dollar does big education make? You curious? I am.

All I can tell ya is this , before Obominationcare , health ins co's were turning on avg around 3 % profit , breweries make about 20% on avg , commies should have left healthcare alone and just gone with beer @ cost

 

[Zippyjuan]

That won't continue if students get bailed out, You like looking up stats, How many cents on the dollar does big oil make? How many cents on the dollar does Apple make? How many cents on the dollar does big education make? You curious? I am.

Profit margin on education would be extremenly difficult to calculate. With say oil you price how much it cost you to dig it out of the ground and process against what you can sell it for. Apple the electronics company has a huge profit margin. Apple the food has a very small profit margin.

According to CNN, the median salary of a college professor is $70,000 a year (2009 figure). http://money.cnn.com/magazines/moneymag/bestjobs/2009/snapshots/3.html

 

[oyarde]

Profit margin on education would be extremenly difficult to calculate. With say oil you price how much it cost you to dig it out of the ground and process against what you can sell it for. Apple the electronics company has a huge profit margin. Apple the food has a very small profit margin.

According to CNN, the median salary of a college professor is $70,000 a year (2009 figure). http://money.cnn.com/magazines/moneymag/bestjobs/2009/snapshots/3.html

Not bad considering they have enough time , schedule to allow additional income

 

[Henry Rogue]

All I can tell ya is this , before Obominationcare , health ins co's were turning on avg around 3 % profit , breweries make about 20% on avg , commies should have left healthcare alone and just gone with beer @ cost

. Interesting figures, I see you have insurance companies profit. I am curious what Hospitals make. I have been in commercial construction for 22 years and 3 years before a welding and repair job I had. In the early "90s" we built private business office buildings and some hospitals. By the late "90s" it was all Private and public hospitals and government buildings. Hospitals where the thing, there had to be a lot of money in it. Now the last five/ten years have been building a lot of university Building. That ain't happening if they ain't turning a huge profit. Look at the graph at the link on my last post. it compares medical cost to education cost and general cost.

 

[Henry Rogue]

Profit margin on education would be extremenly difficult to calculate. With say oil you price how much it cost you to dig it out of the ground and process against what you can sell it for. Apple the electronics company has a huge profit margin. Apple the food has a very small profit margin.

According to CNN, the median salary of a college professor is $70,000 a year (2009 figure). http://money.cnn.com/magazines/moneymag/bestjobs/2009/snapshots/3.html

Yeah Big Eds profit margin is difficult to calculate because they don't want you to know the numbers, but they know.

 

[oyarde]

. Interesting figures, I see you have insurance companies profit. I am curious what Hospitals make. I have been in commercial construction for 22 years and 3 years before a welding and repair job I had. In the early "90s" we built private business office buildings and some hospitals. By the late "90s" it was all Private and public hospitals and government buildings. Hospitals where the thing, there had to be a lot of money in it. Now the last five/ten years have been building a lot of university Building. That ain't happening if they ain't turning a huge profit. Look at the graph at the link on my last post. it compares medical cost to education cost and general cost.

Wealthy Ulumni may fund some buldings ( they put your name on them , you live forever ). I will check out the graph. But really , nothing is wasted like educational facilities , a factory operates all or most of the time , a hospital does , education facities are utilized less than anything. In my hometown ,one of the two High Schools rents out the auditorium on weekends to private companies for revenue .Most educational facilities in the US are probably in use , maybe as little as 23 % of the time 10 months a yr, less the rest.

 

[heavenlyboy34]

Wealthy Ulumni may fund some buldings ( they put your name on them , you live forever ). I will check out the graph. But really , nothing is wasted like educational facilities , a factory operates all or most of the time , a hospital does , education facities are utilized less than anything. In my hometown ,one of the two High Schools rents out the auditorium on weekends to private companies for revenue .Most educational facilities in the US are probably in use , maybe as little as 23 % of the time 10 months a yr, less the rest.

I don't know about that, uncle oyarde. Church facilities tend to be way under-utilized too. Especially the mega-churches. They're at least a close second to educational facilities for most underused.

 

[mtr1979]

Do we need a student loan bailout? No
What ever happened to joining the military and getting the G.I. Bill?
Also doesn't the Army have a student loan repayment plan that will pay back up to $65,000?