Trump’s silence on student loan crisis is deafening

The Hill ^ | March 1, 2017 | Alan Collinge

[GuavaCheesePuff]

The nation owes about $1.5 trillion in student loans today. Nearly $1 trillion of this was added during the last president’s term. Student loan debt has skyrocketed past credit card debt, and all other revolving consumer debt combined. By the end of next year, the country will pass the $2 trillion mark.

This debt is strapped to 44 million people in the country, who carry an average debt of $34,000. Interest alone on this amount is about $90 billion per year. In President Trump’s joint session address last night, however, he said absolutely nothing about the student loan problem.

[caseinpoint]

I agree with apprentice programs for those not inclined to waste their time and money for fluff programs. I worked at a university but it was in the eighties when the identity politics had not yet taken flight. One child of mine went to the university and got a bachelor’s degree in business administration. The other child skipped college and qualified as an IT expert. Both are gainfully employed and I suspect they earn about the same amount of money.

[stars & stripes forever]

If the students checked, they would discover the majority of their student loan went to pay exorbitant salaries and pensions of their professors.

[RightGeek]

Actually, these days it is all the administrators

[RonnG]

Why doesn’t the government just print out diplomas like it does money and give one to every snowflake who can correctly spell his name. Seems to me that would save everybody a lot of time and money

[Ultra Sonic 007]

It’s not like unsecured loans can be repossessed either, but the debt can still be discharged in bankruptcy.

Unlike any other form of debt, student loans are extraordinarily difficult to discharge in bankruptcy. Furthermore, since all student loans are backed by the federal government, this decreases any incentive for colleges and universities to try and control their costs.

Case in point: skyrocketing tuition, with universities becoming more and more like ‘resorts’ to attract their new clients.

I agree that the individuals who took out the debt should be held accountable for their choices...but speaking as someone of that generation (who mercifully did not have to take out any loans to get through university), college is presented as ‘all pros, no cons, and if you don’t get one, then you’ll be stuck in a dead-end job’. This message is blasted to not just students, but their parents as well.

And since FASFA loans are now tying the income of the PARENTS into determining the student’s eligibility for aid, it’s only become more insidious.

[Freedom56v2]

Don’t forget all the expensive construction/renovation projects. When taking my daughter “college shopping” we visited between 1012 schools and nearly every one had major construction projects, and at some the dorms certainly were not “your grandfather’s dorm” ~ they were beyond comfortable with many modern conveniences—like private bathroom for each student and indoor parking?!?!

[yadent]

While I tend to agree with some of your statement, I tend to believe that bankruptcy should be reinstated as a means of discharge for student loans. After all, if a lending institution was ignorant enough to grant loans for a degree in say gender studies, should not that institution also be co-liable for the results of such a lending decision for a degree useless in the workforce? As for courts being unable to repossess an educational degree in bankruptcy, many individuals have used credit for vacations, market speculation, and other non asset endeavors which have subsequently be discharged. As long as discharge in bankruptcy is not allowed in higher education, colleges and universities will continue to hand out degrees with no practical use, at ever increasing costs. It’s a no lose proposition for them. After all, according to the ‘experts’, one can’t get a good job without a degree......any degree that they can sell you.

[healy61]

A couple years back we had probationers coming in to report without money for fines. They caught on quickly, and were getting student loans for college. They were paying court costs, buying phones and car, and paying rent. And I don’t recall a single one went to college. It took about two years, and the practice kind of died off.

[qaz123]

What does he have to do with it? What does anyone but, the borrower, have to do with it?

They want a bailout, that’s all. They convinced these crybabies that everything in life should be free. The more money they borrowed, the more expensive it got. So, now these crybabies and antifa kids are finding out that their degree in Pre Roman Feminism Studies in Cross Culturalism, isn’t exactly landing them that 6 figure job and the corner office, right out of college.

Do what I did, pay the damn things off. Best part about all of this, unlike the old days when people would change their names to avoid paying them, with technology, losing their ability to declare student loans in bankruptcy and not being able to change your name to avoid payment(they stay with you, no matter what you change your name to), these dumbasses will be paying the damn things back till they go to the grave.

Now, if Pres Trump wants to do something, get the Feds out of the student loan business. If they still feel the need to give some money, make it only go to those earning STEM degrees. Let the private lenders, loan their money to the High School, Senior that supports ANTIFA, see how far they go.

[faithhopecharity]

Gawd Im tired of hearing about this.
Kids may need some guidance on how to borrow prudently (limit your borrowing to what you reasonably can plan to pay off).

the bank used to have that discussion with student borrowers. but since Obama illegally nationalized the student loan business, its pretty much only the government (us) that will wind up losing (not getting repaid the improvidently-borrowed funds). the student loan “crisis” is, in a very major way, an Obama Legacy for the American taxpayers. The best thing DJT could do now with this mess is to STEP ONE: impose a “prudent lending” standard immediately, and then STEP TWO: unwind Obama’s forced nationalization..returning the student loan business to the banks. Say what you want about the banks, they will (absent another governmental intrusion or snafu)....make loans much more prudently and intelligently than the federal govt ever will (or could).

[kingu]

Funny how folks like this aren’t going around yelling at students not to take out student loans... It’s almost like they’re simply looking for taxpayers to pay off all these loans for free.

By the by, some of the things charged to these student loan accounts would just shock some people.. Food, computers, video game systems, and my personal favorite: mandatory health insurance plans.

[heights]

Where is the debt forgiveness for all the working class kids that didn’t have a chance at college. Where is their 30 or 40 or 50 thousand a year for four to eight years. I watched pretty much all the Bernie rallies and never once did he mention working class kids...

[CatOwner]

Finish your degree on time (our daughter completed her BA in three years), choose a degree that has a reasonable chance for a job, and start working.

Our daughter is over two years into her job, has no college debt or consumer debt, and even moved to Texas last year from this hell-hole of a state (California).

I'll have to ask her what she thinks about those who want to be bailed out of their college debt.

[jospehm20]

Simple fix. Pay as agreed. Easy Peasy as Dorkbama would say.

[AlaskaErik]

The student loan “problem” is between the debtors and the debt holders. It is not a federal government issue.

[Seruzawa]

Except for a few specific situation most employers don’t five a hoot in hell WHERE you got your degree as long as it is an accredited school. So there are plenty of State universities to choose from. You can save even more money by doing your first two years at a community college. That’s how I got my EE while working a job. It’s stupid to pay the ridiculous fees for private colleges unless you have a specific track that will pay enough to justify the fees.

So many fools want to send their kids to some big name university just so they can brag to their friends.

[jazminerose]

The absolutely WORST thing I ever did in my life was take out student loans.

This waaaaayyy back in the 1980s and 1990s to pay for my two post grad degrees. I was very queasy (that word is all the rage now) about taking on that kind of debt, but my *father* talked me into it.

The system was totally different then. My loans are at 7%.

You HAVE to pay them. They never go away, they are always going to be sitting on your credit report. Kids are living with their parents to pay off their loans, they think they’re building good credit. Think again.

Yes, if you pay your student loans on time, it is a plus on your credit. But . .. that big chunk of debt gets counted into your overall debt utilization score.
Imagine if you owed a few hundred on your credit cards, have a reasonable car payment, but your total debt load is $100 000. It will bite you.

Just say NO to student loans. The only exception I could imagine would be medical school. It just wouldn’t be possible to work even part time, so borrowing is probably the best option. Hopefully, the student has shaken the trees to find every cent of available grant and scholarship money.

[Gene Eric]

Crony Academia.

[central_va]

The primary reason for the increase in college costs is the availability of student loans.

Right. That doesn't address the problem.

[cynwoody]

What I paid for tuition in the late 1970’s is peanuts to what it costs now even after adjusting for inflation. There is no way now to pay as you go. No way.

Ask yourself, what do college loans and medical care have in common? Government involvement!

The more the government provides tuition money, the more the colleges raise tuition!

With the government involved, there is no way for college tuition to find its natural price. So, it just goes up and up. Crazy Bernie thinks it should be free. The colleges think it should be infinite. If Crazy Bernie ever gets his way, you'll pay through the nose, whether or not you have kids in college, and America will suck!