Posted on 04/05/2017 9:31:22 AM PDT by Wally_Kalbacken
The rising burden of student debt is weighing on interest rates in the U.S., and it would be a “reasonable conversation” for policy makers to explore making college tuition free, Federal Reserve Bank of New York President William Dudley said.
The growing pile of student debt is “obviously one headwind to economic activity” that “probably pushes in that direction of lower equilibrium real rates” because it limits households’ spending power, Dudley said Monday during a press briefing in New York.
(Excerpt) Read more at bloomberg.com ...
The clear solution to me is to end the student loan industry. That way there’s no more student debt and the price for college educations will go down as fewer deadbeats choose to pursue a meaningless degree in liberal arts.
What’s also missing is that the first thing the Obama administration and the DNC passed in 2008 was nationalizing student loans and increasing the amount given out.
Now tie this in with colleges dictating SJW and transgender nonsense and the other article on here about college students mounting insurrection campaigns - all on your tax money... well it’s quite a devious plan.
Which, for the most part, was nationalized by Obama.
So government is creating its own debt-serfs. Talk about being in hock to the company-store!
“it would be a ‘reasonable conversation’ for policy makers to explore making college tuition free”
I’d be good with that if college professors and staff were willing to work for free. But then, how would they eat?
Gotta love the social justice lingo coming from a former senior Goldman Sachs executive. "Conversations" in social justice-speak tend to be one way lectures. The conversation on race was liberals and black saying "whites are racist" and whites saying "yes we are, what can we do to make it up to you?" The conversation on free tuition isn't going to result in everyone saying "you know what, college shouldn't be free."
If you want to have a real conversation, let's talk about why college costs are so high. Hint: government subsidies. Hint: university monopolies. Hint: liberal professors' salaries. Hint: expensive programs like Queer Studies and Wymyns Studies that don't result in kids getting jobs. Hint: huge and expensive administrative staffs. Hint: college campuses that look like palaces.
The clear solution is to have the universities make the loans. That will cause them to take the risks and lower the costs.
If I as a taxpayer am responsible for these loans or for tuition, then I want it only to go for useful degrees. Student subsidies/loans only for engineers, mathematicians, scientists, nurses, accountants, etc., not for the Diversity Studies and literature majors. Of course, engineers and nurses don’t need a subsidy - they all repay their loans.
That means the answer is: Let’s kill the frivolous degree mill departments that turn out degrees with no market value. Anyone majoring in a field where repaying the loan is a problem is wasting his time. Anyone earning grades in any field so low that they don’t lead to a job needs to drop out. They know they are wasting the money, so a sensible course is for them not to continue on that path. Making them responsible for their debts is the best answer we’ve had so far, and now the losers are trying to change that answer.
Student loans were never intended to benefit the students. They were always aimed at providing an enormous pile of cash to colleges and universities.
“a “reasonable conversation” for policy makers to explore making college tuition free”
Oh my Lord, another welfare program. When did college become a right and not a privilege? By making a taxpayer project, it just creates another another entitlement program. And guess who pays for those? No one is guaranteed a college education. If high school students can’t afford it now, how can paying for those who can’t even make the grades to qualify make it right?
Wanna fix it? Everyone that knows anything about business understands that the main way to keep prices down is competition. So, if the really expensive schools can’t get students because of cost, then they either fold or reduce prices. Then you say they will have to compromise their instructors employment.
Why do we need to pay a football coach $9 million dollars a year? The number one paid college coach in the US is Jim Harbaugh at Michigan. The average wage in the US today is a little over $50K. For the average worker to make in his lifetime the same money as Harbaugh makes in 1 year would take over 170 years. College needs to cut some corners.
http://sports.usatoday.com/ncaa/salaries/
So, you want to cut down the default rate of around 11%, don’t pay for the football coaches’ yachts. And if the universities are paying him that much, they have to be making it. So why are they charging so much and making enough to pay him? And what about the other “instructors”: the average is $98,974 for professors, $69,911 for associate professors, $58,662 for assistant professors, $42,609 for instructors, and $48,289 for lecturers. Can’t a college professor, and maybe a TA, handle the job? They do it in high schools across the nation with larger class sizes than the college classrooms.
So when some idiot in the financial area tries to tell me that the rediculous of threat is based upon the even worse idiocy, I just don’t think he’s being realistic. And when he is using a false action like this, I, also, don’t think he is being honest. But he is greedy.
red
“Colleges’ will be seen as money grubbing criminal enterprises in the future.
Caps get raised. Even by Republicans.
End the student loan industry or else accept the consequences when it tanks. Those are the only choices here.
Caps get raised then so be it. Let’s politicize it. We can also end student loans. win - win
Free tuition, a large amount going to fund professors and students who accomplish absolutely nothing economically valuable over four years. Fund more medical doctors and nurses? Probably, or at least move to reduce the debt after successfully entering the profession through some public health or military commitment. More Women’s Studies graduates? No thanks, not on my dime.
That would involve parents and students choosing not to play the game. It would involve a harsh law such as no one can EVER get another loan until their student debt is paid off. It would never happen, but that's what it would take for people to get real about the damage debt does to their future choices.
There are a few generations of people now who think that college loans are an expected and necessary expense to get ahead. Then they finance an SUV, a McMansion, and put expensive vacations on their credit cards. We've become a nation of debt slaves, and all the crazy solutions that are coming up do NOTHING to reward those who've avoided the quagmire.
There can't be freedom without a mobile, independent middle class. Debt takes that away from our potential. One has to wonder if the US can EVER get back what we had in the 1950s and early to mid 1960s.
The solution to the problem is so incredibly simple.
Make the educational institution the co-borrower of every loan. It’s really that easy.
If I am LU (Liberal University) and I know that I am the co-borrower on every loan, I am going to make damn sure that:
1.) every degree program I offer will be worth something in the real world.
2.) I am only accepting students who can do the work.
3.) The university will not be used as day care for 18 to 22 year olds.
4.)Achievement and hard work will be respected on campus rather than stupid liberal BS activism.
I wonder how many gender studies or ethnic philosophy programs would be in each college if the school itself was on the hook when the student couldn’t pay the loan back.
Which, for the most part, was nationalized by Obama.
Once again, over the course of years, the left creates the problem for which it wants to put in place it's preconceived solution. Health insurance, student loans...
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