Posted on 07/08/2019 6:28:46 AM PDT by reaganaut1
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According to the Department of Education, only 45 percent of student loans are used to attend public colleges and universities, presumably because tuition at those schools is already lower than in the private sector.
The department also reports that 40 percent of loans are taken out to attend graduate or professional school — for example, master’s and Ph.D. programs, law school, business school and medical school. This number is large because graduate school is expensive and, in contrast with loans for undergraduates, there is no hard cap on how much money students can borrow from the federal government for graduate school. People can borrow the full cost of tuition, books, supplies and living expenses to attend any accredited graduate or professional program. This is why hundreds of graduate programs produce average loan balances of $100,000 or more.
Combine the two statistics, and it’s clear that the majority of all student loans are taken out to attend private colleges or graduate school.
This means that the day after Senator Sanders “hits the reset button,” as he put it in the news conference, the national student debt odometer would begin rapidly spinning again.
Will those later debts be forgiven, too? If not, the plan would create a generation of student loan lottery winners, with losers on either side. People who had already paid back their loans would get nothing. People with future loans would get nothing. People with debt on the day the legislation was enacted would be rewarded.
If, on the other hand, the legislation creates an implicit promise that all kinds of future student debt will also be forgiven, it could have unintended consequences.
(Excerpt) Read more at nytimes.com ...
“Unlimited borrowing for graduate and professional school should be ended.“
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There’s also no restriction on how the money will be spent; spring break in Cancun, bar tabs in sports bars, luxury apartments, on and on. Also, many of these people have no interest in working on the side while in school. Some attend prestigious private schools for soft degrees which provide zero opportunity to repay large loans. “Stupid is as stupid does “....
LOL, guilty as charged. I bought a (used) BMW R650 motorcycle with my student loan my sophomore year. I did however need the transportation, worked 2 side jobs while in school, and paid off the loan in 5 years post-graduation.
20/20 hindsight, would not recommend this path, but I had that bike 20 years and everything worked out.
Someone wrote a pretty good article on the subject of paying it back. Universities would have to forgive the biggest part. Then there’s the ‘students’ and then the government for encouraging these students to continue their gender studies courses. But then why should folks who didn’t go to college and are not in debt be forced to bail out those who spent 4-6 years ‘parking’ themselves on campus? Those Saturday evening cocktail parties allow them to feel superior.
The crappy Obama era economy was the main cause of the student loan crisis since there were few jobs thanks to Visa abuse, offshoring, and anemic growth. Bringing back the Democrats is definitely not worth it. The whole reason that people undertake this exercise is for better jobs. You might be $36k up, but what is that over the long run?
Cancelling student debt does nothing to solve the problem of outrageous college costs. They need to haul some of these university presidents in front of a congressional committee for publicly televised hearings. Let them look the American people in the eye and justify why they charge the tuition and other fees that they charge. Let them justify why a single textbook in the college bookstore costs a couple of hundred dollars, when a comparable book in Barnes and Noble can be bought for around $40 to $50. (Oh, by the way, that $300. textbook just happens to have been written by the professor who is teaching the class.) As long as the government is willing to look the other way, the colleges and universities will continue to charge whatever they feel they can get away with.
Found your candidate for 2020 yet?
When I learned that students were using “education” loan debt to finance personal spending excess, my sympathies were erased.
My GD needs/wants her graduate degree but there are very few offered at public universities and the long distance programs are outrageous, plus she would have to fly to the school once a month. A 3 year program that would result in a PhD costs $167,000 just in tuition!
If they stopped the unlimited borrowing this scam would also change.
ITM, she may just get her Graduate degree in Physical Therapy at a public university with $12K yearly tuition.
Loans should be limited by field of study, and only be for tuition, fees, and books. And require a 3.0 GPA to allow further loans
Pretty much, loans limited to STEM and other disciplines with a noteable deficit in available candidate for open positions.
Gender Studies, etc: not so much. . .
And we all know how Mrs. Bill Clinton's reset button worked.
And, what about the families who saved for years, going without many niceties in order to secure a collegiate education for their kids? Sends a message that this is the wrong path.
And, what about the college students who worked while in school? Slap in the face.
Put an immediate stop to these loans for the children’s sake.
Questions our leadership never asks.
Do aoc n saners agree to stop these harmful loans today?
We should post a hard question thread every day. Will congress and their families be exempt?
Good point. College expenses have risen faster than healthcare expenses. With healthcare it costs more, at least partially, because they can do more. College is going the other way where they've replaced education with indoctrination.
The answer is to make institutions of higher education tuition free.
Like The Beaknik Bern’s wife did at Burlington College.
Colleges took advantage of the huge influx of taxpayer money into federal loan programs to go on a hiring spree and greatly increase salaries for administrators and professors, like Elizabeth Warren who was paid nearly half a million to teach one class. I have also read there are 4 times as many administrators on campus as there were a generation ago, “Diversity Officers” and the like.
I want my reparation check for paying my family’s tuition.
There has been discussion on a system where people can invest in students based on their reputation, test scores, etc. It is a free market system that would reward wise investors who support students that are likely to succeed and pay back their loans. It would punish those foolish investors who support students based on their need, their loudness, or any other quality that is not correlated with success.
This system cannot compete or even exist in an economy where the government is wildly subsidizing everyone — sort of a Gresham’s Law situation. Grants destroy markets just as brutally as taxes.
“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” President Ronald W. Reagan
“They need to haul some of these university presidents in front of a congressional committee for publicly televised hearings. Let them look the American people in the eye and justify why they charge the tuition and other fees that they charge.”
“Social Justice”, Democrat style
The better off pay more so the “underprivileged” pay nothing.
Those who get an arguably easy life early in life pay dearly when they become adults.
College tuitions are like PPACA premiums.
Some pay ~$600 a month and others (i.e. underprivileged” folks) pay ~$12/month for the same coverage.
And if you are very “underprivileged”, you’ll pay nothing.
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