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Trillion Dollar Student Loan Bailout?
Leeroy Jenkins
Member Posts: 2,295 ✭✭✭✭✭
Is there no end to the bailouts and spending?
http://www.breitbart.com/Big-Government/2012/11/29/1-Trillion-Dollar-Bailout-The-Student-Loan-Catch-22
A possible $1 trillion bailout is coming-and soon.
America's now-nationalized student loan industry just reached a value of $1 trillion, according to Citigroup, growing at a 20 percent-per-year pace. Since President Obama nationalized the industry (a tacked-on provision of the Obamacare bill), tuition has gone up 25 percent and the three-year default rate is at a record 13.4 percent.
Ron discussed this problem last night with Larry Kudlow:
With many young people unable to pay their loans (average graduating debt is about $29,000), Citigroup and others are speculating that this industry might be ripe for a bailout.
To pay off all the current defaults, Citigroup says it would cost taxpayers $74 billion. However, this number doesn't include those who will default in the coming years, and, when the government rewards the defaulters, it will encourage more borrowers not to pay their debts.
And liberals in Congress have proposed forgiving all student loans via "The Student Loan Forgiveness Act 2012," costing taxpayers $1 trillion.
Adding another $1 trillion dollars to the national debt isn't exactly "forgiveness" for young people-it's prolonging the payoff. In fact, student loan bailouts are a catch-22 for young people because they're going to be held accountable for paying off the national debt and interest payments.
A student loan bailout will also be rewarding higher education bureaucrats for a diminished product. A college degree used to mean that a person would add on average $1 million to their income over their lifetime. Today a college degree only guarantees an average $300,000 in added income over a lifetime.
The answer isn't a bailout. The student loan industry must to be returned to the private sector. Would a private lender ever invest $100,000 of their money in a student that had no plan? No.
It's not about limiting access to college; it's about making sure students have a well-thought out plan for their future before investors put a $100,000 stake in their education. College should be about specializing in a trade rather than defaulting to general studies that won't lead to a job.
A civics education is important, but why would an employer hire someone with no applicable work skills, especially in a slow economy?
If we wish to end the incentives for bailouts, we need to hit higher education in the purse. Endless government money and bailouts won't get our students jobs, and it won't fix the problem.
http://www.breitbart.com/Big-Government/2012/11/29/1-Trillion-Dollar-Bailout-The-Student-Loan-Catch-22
A possible $1 trillion bailout is coming-and soon.
America's now-nationalized student loan industry just reached a value of $1 trillion, according to Citigroup, growing at a 20 percent-per-year pace. Since President Obama nationalized the industry (a tacked-on provision of the Obamacare bill), tuition has gone up 25 percent and the three-year default rate is at a record 13.4 percent.
Ron discussed this problem last night with Larry Kudlow:
With many young people unable to pay their loans (average graduating debt is about $29,000), Citigroup and others are speculating that this industry might be ripe for a bailout.
To pay off all the current defaults, Citigroup says it would cost taxpayers $74 billion. However, this number doesn't include those who will default in the coming years, and, when the government rewards the defaulters, it will encourage more borrowers not to pay their debts.
And liberals in Congress have proposed forgiving all student loans via "The Student Loan Forgiveness Act 2012," costing taxpayers $1 trillion.
Adding another $1 trillion dollars to the national debt isn't exactly "forgiveness" for young people-it's prolonging the payoff. In fact, student loan bailouts are a catch-22 for young people because they're going to be held accountable for paying off the national debt and interest payments.
A student loan bailout will also be rewarding higher education bureaucrats for a diminished product. A college degree used to mean that a person would add on average $1 million to their income over their lifetime. Today a college degree only guarantees an average $300,000 in added income over a lifetime.
The answer isn't a bailout. The student loan industry must to be returned to the private sector. Would a private lender ever invest $100,000 of their money in a student that had no plan? No.
It's not about limiting access to college; it's about making sure students have a well-thought out plan for their future before investors put a $100,000 stake in their education. College should be about specializing in a trade rather than defaulting to general studies that won't lead to a job.
A civics education is important, but why would an employer hire someone with no applicable work skills, especially in a slow economy?
If we wish to end the incentives for bailouts, we need to hit higher education in the purse. Endless government money and bailouts won't get our students jobs, and it won't fix the problem.
Comments
If I take a trade, like a plumber, and have no loan, what's my benefit?
That good feeling you get when you pay taxes.
person who took out the loan.
quote:Originally posted by Sperry
If I take a trade, like a plumber, and have no loan, what's my benefit?
That good feeling you get when you pay taxes.
That mush be what it feels like to take a dump in your trousers.
If I take a trade, like a plumber, and have no loan, what's my benefit?
The same as mine, you get to pay for a college punks loan.[}:)]
IF you want to go to college for 12 years to avoid working, expect to pay for it yourself,....not me.
I paid the entire freight on my son"s college educations......do i get a rebate for doing the right thing
Nope,.....just pride in handling it the way it should be done.[:)]
I paid the entire freight on my son"s college educations......do i get a rebate for doing the right thing
Personally, I find issue with it only because I paid my own way through college and think that everyone should be required to do the same. And while I will probably contribute some to my girl's education, you can bet they will be paying the bulk of it.
I don't think what you did was wrong per se, but I question the logic of it. If you have good reasons beyond just "I love my son" I would love to hear it.
And fiery auto crashes
Some will die in hot pursuit
While sifting through my ashes
Some will fall in love with life
And drink it from a fountain
That is pouring like an avalanche
Coming down the mountain
quote:Originally posted by William81
I paid the entire freight on my son"s college educations......do i get a rebate for doing the right thing
Personally, I find issue with it only because I paid my own way through college and think that everyone should be required to do the same. And while I will probably contribute some to my girl's education, you can bet they will be paying the bulk of it.
I don't think what you did was wrong per se, but I question the logic of it. If you have good reasons beyond just "I love my son" I would love to hear it.
I don't care if the student pays their own way, or the parent pays their way,......either is fine with me, and it's none of my business what people do with their own money.
It becomes my business when they take money from me to pay for said 'education.'
quote:Originally posted by William81
I paid the entire freight on my son"s college educations......do i get a rebate for doing the right thing
Personally, I find issue with it only because I paid my own way through college and think that everyone should be required to do the same. And while I will probably contribute some to my girl's education, you can bet they will be paying the bulk of it.
I don't think what you did was wrong per se, but I question the logic of it. If you have good reasons beyond just "I love my son" I would love to hear it.
My son got a free ride except for his books, because he was number 1 in his HS class and scored high on the act. He is a senior Medical Technology major.
I have been lucky, but they did worked hard in school.
I had a full scholarship to college in Chemistry...
And Linda had a full scholarship to college at two separate schools in English.
She opted for the local of the two... And well I wasn't all that interested in Chemistry at the time.
So I didn't take my scholarship in order to attend the same school as Linda...
We were married while in school and Linda ended up giving up the sole scholarship she had
that was paying for both of our school tuitions...
We ended up going back on the "Pay as You go plan" some many years later...
We both worked at the same motel... Her in the evening and I at night...
So we could make class during the day.
It took a while... But believe me... It was worth it.
When we went back the second time...
It amazed me that we were much more attentive and studied much harder.
The younger, traditional students tended to be lackadaisical or at best... Poor students...
Since, for most of them... Mom and Pop was paying for their educations.
You could always tell the ones who paid their way... They studied...
The others who were on a 'free' ride... Well they played hard at least.
Yep... Agreed. 'Getting your own' education is worth much more than having it paid for you... [;)]
My wife and I both work with people who are in debt from school loans that cost them about the same as a house payment each month. My wife and I decided when our sons were born to start a savings program to ensure their ability to attend college or trade school. We decided if we could give our sons a leg up and bless them with an education it would be a blessing to us also.
My sons both worked jobs starting in High School and paid for their own cars and insurance. They both worked during their college days to pay their expenses other than
tuition and housing, They were expected to perform and they did,
Debt is a trap my wife and I have avoided and we did not wish for our son to start out 40-60K in the hole. Our sons have expressed gratitude for their educations and they have turned out to be good hard working men.
Both are still in, but have plans and finances for the future.
Our daughter we sent to school but she worked at a dentist's office in Vegas to make up the difference.
My wife and I would do anything to advance our kids prospects for the future, but they rarely ask for much anymore.
We raised responsible kids and it grinds my * to think we will be on the hook to pay for other peoples irresponsible offspring.[:(!]
my wife met a person her last semester that has taken a class for the the third time, she asked why she didnt do any work, so she explained that as long as she was enrolled in school she got a check, got a free apartment, and don't have to pay back her loan as long as she is in school {and she doesnt have to pass, just continue for so many weeks then stop going till next semester}
and sure most know you cannot erase a student loan by bankruptcy, and they will take your income tax refund if you get one, but these people do not care, they will tip toe around it, and when the they do get caught up with they will blame the government
retroxler58
And Linda had a full scholarship to college at two separate schools in English.
My, My, what that poor lady has been through,,,,,,,,with you !!!!![:D][}:)][;)]
Oh how well I know...
She and I both graduated high school the same year...
I was #51 in a class of 157... I call it the bottom of the TOP third with an emphasis on TOP...
She graduated Numero UNO... Number ONE... Valedictorian of our senior class.
We went to school together and continued our education together by working together...
I graduated (finally) with my BSME... in '99
She graduated with her BS-Ed before me in '98 and MS-English two years later in '00
Both degrees conferred upon her as 'Summa * Laude' with a perfect 4.0 GPA
She's contemplated her PhD for a long while...
She's the smart one... Me the lucky one... I know that.
Just damn glad that I got the better end of the deal and the chaps ALL took after her in the smarts dept. [;)]