Goverment to take 100% control of student loans!

[BenIsForRon]

At least with this bill, some of the money will go back into the tax-payers hands, (though probably less than what went in).

I should elaborate on this statement. I know we never get anything back from the government, but at least in theory its coming back into our hands.

 

[angelatc]

Students choose whether to enter the federal loan program or not.

You didn't read the article. The Senate bill wipes out the private market. That's not a choice.

 

[angelatc]

I should elaborate on this statement. I know we never get anything back from the government, but at least in theory its coming back into our hands.

You don't remember Obama saying that he would erase debt for people who worked in the public sector for a little while? This is step one in that plan.

So not only do you get to finance a world class Harvard education, you'll get to pay a graduates salary and benefits for a year while he works defending pimps and hos from an ACORN legal aid office on the South side.

Wake up already. They have no interest in collecting the money. They want to provide free college to everybody. A beautiful, but Utopian and economically unsustainable plan.

 

[BenIsForRon]

You didn't read the article. The Senate bill wipes out the private market. That's not a choice.

No, I think you misread the article. This article is talking about federal loans, which up until now, have just been private loans backed by tax payer money. In other words, they were zero risk loans for the bank. Really, there is no reason to have them involved in a government loan program. This shouldn't effect loans done completely outside of government, like between a bank and a student directly.

This statement from the banking industry sums up my point pretty well:

Still, remaining lenders have fought against the changes, arguing that providing loans to students is among the best ways to establish a relationship with new clients that could lead to more lucrative business in the future.

 

[Bruno]

No, I think you misread the article. This article is talking about federal loans, which up until now, have just been private loans backed by tax payer money. In other words, they were zero risk loans for the bank. Really, there is no reason to have them involved in a government loan program. This shouldn't effect loans done completely outside of government, like between a bank and a student directly.

This statement from the banking industry sums up my point pretty well:

Still, remaining lenders have fought against the changes, arguing that providing loans to students is among the best ways to establish a relationship with new clients that could lead to more lucrative business in the future.

So instead, Obama gets their business and loyalty. They will be endentured servants to Big Government until the loan is paid in full.

 

[BenIsForRon]

You don't remember Obama saying that he would erase debt for people who worked in the public sector for a little while? This is step one in that plan.

So not only do you get to finance a world class Harvard education, you'll get to pay a graduates salary and benefits for a year while he works defending pimps and hos from an ACORN legal aid office on the South side.

Wake up already.

Chill out, I agree with you, I'm just saying you don't understand what this bill is about. I agree that Obama is trying to increase the size of government by tricking people into becoming slaves for it. But this bill doesn't do anything that makes that reality any closer, it just keeps banks from getting their hands on federal loans, which is good IMO.

 

[angelatc]

No, I think you misread the article.

I think you skimmed the article.

The Senate bill also would end private-lender origination of loans, the aide said, leaving the federal government as the sole provider of college loans.

 

[angelatc]

Chill out, I agree with you, I'm just saying you don't understand what this bill is about. I agree that Obama is trying to increase the size of government by tricking people into becoming slaves for it. But this bill doesn't do anything that makes that reality any closer, it just keeps banks from getting their hands on federal loans, which is good IMO.

I worked in the financial services industry for 12 years. I understand exactly what this is about.

 

[BenIsForRon]

So instead, Obama gets their business and loyalty.

Federal student loans have been around for much longer than Obama has been president. Stop pretending like I'm a big government socialist just because I'm not part of your little echo chamber.

 

[tmosley]

fixed that for ya

You miss the point. The government was just as involved before, it's just that there was another middleman with assured profits and no reason to negotiate on anything ever with people who had loans.

It IS an improvement, in the same way that ending the Fed will be an improvement, even if it means that the government takes direct control of the printing presses again. We're cutting off some leeches is all that is happening.

Now admittedly, the new agency which controls who gets loans and for how much may go crazy with the money, but that's no worse than what the banks were doing.

 

[BenIsForRon]

I think you skimmed the article.

"The Senate bill also would end private-lender origination of loans, the aide said, leaving the federal government as the sole provider of college loans."

My understanding is that this about federal loans, which were technically private loans that government guaranteed. Now, government provides the actual loan.

Anybody have another article about this? I'm pretty sure I'm reading this right, but I could use some more proof.

 

[tmosley]

You didn't read the article. The Senate bill wipes out the private market. That's not a choice.

The "private market" was 100% government controlled, just with a set of middlemen making profits rather than bureaucrats. Private student loans can still be had, these are only the government subsidized loans. Of course, if I am wrong, please let me know.

 

[tangent4ronpaul]

You guys probably aren't old enough to remember, but they certainly didn't plan to to take over student loans. They were only going to provide a public, affordable option.

Considering the current Health Care debate...

ROTGLMAO!

And tuition started to to skyrocket, didn't it?

-t

 

[Cowlesy]

If I'm CFO of a College, I can now happily report to my Board of Trustees that we can continue our 9.5% tuition hikes Year-over-Year, because even though we didn't get as many kids last year due to the recession and tightening lending standards meaning we should probably make our program more affordable, the government will give anyone a loan, and so more kids will be able to borrow $50k/year to get an education.

Also don't forget, the only way you can discharge a student loan in your name, is death.

 

[BenIsForRon]

The "private market" was 100% government controlled, just with a set of middlemen making profits rather than bureaucrats. Private student loans can still be had, these are only the government subsidized loans. Of course, if I am wrong, please let me know.

Thanks Tmosely and Jordan, I know I'm not crazy. People really need to read these things more closely, otherwise they'll be talking to someone on the street, saying "Government is ending all private loans!" and end up looking like a dumbass.

 

[Bruno]

Federal student loans have been around for much longer than Obama has been president. Stop pretending like I'm a big government socialist just because I'm not part of your little echo chamber.

I was never intending to call YOU a big government socialist.

 

[tmosley]

If I'm CFO of a College, I can now happily report to my Board of Trustees that we can continue our 9.5% tuition hikes Year-over-Year, because even though we didn't get as many kids last year due to the recession and tightening lending standards meaning we should probably make our program more affordable, the government will give anyone a loan, and so more kids will be able to borrow $50k/year to get an education.

Also don't forget, the only way you can discharge a student loan in your name, is death.

You can also dissolve the government that issued it

 

[BenIsForRon]

I was never intending to call YOU a big government socialist.

My bad, that was the impression I got. It's happened to me quite a few times on this forum though.

 

[BenIsForRon]

You can also dissolve the government that issued it

Hear hear!

 

[BlackTerrel]

And as a result, tuition will soar since all loans will be government backed.

This is one of the biggest issues with student loans. Colleges charge exhorbitant tuition because students have access to cash. If there were no loans available, tuition would simply be cheaper and professors wouldn't make such enormous salaries, and perhaps would have to teach more rather than devoting all their time and resources towards "research".