Posted on 12/11/2019 6:33:01 AM PST by karpov
For years I have railed against the dysfunctional federal student loan program. The availability of cheap federal student loans has enabled universities to increase tuition fees aggressively, helping fund an unproductive academic arms race that, among other things, has led to sizable administrative bloat on most campuses.
The proportion of recent college graduates from the lowest quartile of the income distribution is lower than it was in 1970, suggesting that student loans have not been a successful vehicle for providing college access to those from low-income backgroundsa primary program goal.
Default rates on student loans are high because standard commercial lending standards are ignored. Schools that encourage students to take out loans have no skin in the game, facing no financial consequences when their students disproportionately default on their obligations. In short, the student loan program is dysfunctional and in need of substantial modificationarguably elimination.
The New York Federal Reserve Bank has led the way in researching the loan programs, and a new study details that things are actually far worse than stated above.
Here are a few additional problems:
* Thinking the federal government is going to forgive student loan debt, a majority of students are not reducing their loan balanceat all; * A very small portion (7 percent) of borrowers have huge debts (over $100,000), but owe over one-third of the $1.5 trillion in student loan debt outstanding; * College graduates in 2010 had repaid only 9 percent of their loan balances five years later; * College loan debt rose twice as fast as tuition fees from 2008 to 2018; much student borrowing appears not to meet direct instructional costs; * People living in high-income ZIP codes have accumulated far more debt than those living in lower-income areas, suggesting relatively affluent borrowers are disproportionate participants
(Excerpt) Read more at jamesgmartin.center ...
The Democratic candidates are promising loan "forgivness", so it's not surprising that many borrowers are not making payments on their loans.
There shouldn’t even be Federal Tuition Aid.
Classic example of an “extra-Constitutional” abuse of taxpayer dollars.
Financial slavery perpetrated by the benevolent federal government.
Another example of the government coming to the party and urinating in the punch bowl.
There shouldnt even be Federal Tuition Aid.
Classic example of an extra-Constitutional abuse of taxpayer dollars.
Exactly. However the use of tax dollars goes to democrat/socialist control over the country. To Begin with, it destroys the American family. These kids cant get jobs, make money nor get out of debt
They dont get married and they do not procreate certainly not within a marriage
It is bad
Obama stare
Ted it. His stupid- ass VP, Joe Biden, oversaw this while he was promoting from a position of (non-practicing) catholicism
Trump can do only so much. We have much work to do undoing this damage
Simple solution: raid school endowments and teacher pensions to repay student loan defaults.
Well the Liberal Morons cheered when Obama took over the student loan industry and turned collections over to the IRS.
So go pound sand snowflakes, you can never be forgiven for your loan, and your precious Federal Government will take it out of your ass until every bit is paid.
I would just pay it off with a credit card and then blow off the credit card if I was these kids
The actual purpose of the program has always been not the rewards to students, but the reward to academia, helping insure THEY got all the money they wanted.
The same misdirection has always been at work on the government’s ways of helping inidividals with their medical bills or medical insurance. It always really about helping an unaccontable health care industrial complex has no brakes on its costs, with government helping to insure someone will pay them what they demand.
The “return” has been the flow of political donations back to the politicians from the healthcare industrial complex - the real beneficiaries of the federal programs subsidizing individuals healthcare and health insurance.
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