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| Should we have the Student Loan Program? |
| Yes |
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66% |
[ 4 ] |
| No |
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33% |
[ 2 ] |
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| Total Votes : 6 |
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bestsynd
Site Admin
Joined: 31 Dec 1969
Posts: 2361
Location: Southern CA
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 Posted: Sun May 07, 2006 10:38 pm Post subject: Student Loans |
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Student loans are one of the toughest loans to default on. In fact, there is no default, only penalties and compound interest to those who don’t. or can’t pay. The CBS News program 60 Minutes ran a story on the program where they pointed out the dilemma many graduates and non-graduates face when they are unable to pay back the loans.
Regular lenders like credit card companies and banks can not go after the same way Sallie Mae can. Sallie Mae (or their collection agencies) can garnish social security if someone defaults on a student loan. Some states allow lenders to garnish wages, but Sallie Mae can do this in all states. Also, Sallie Mae has been able to facilitate the passing of laws that make it nearly impossible to file bankruptcy to extinguish the student loan debt. No other lenders receive such protection, according to the 60 Minutes broadcast.
Most people would agree that when the government loans money or guarantees loans, they should get their money back. The problem is that most people also agree that the student loan program is a good thing. But is it really?
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Guitarras Reyes
Forum Guru
Joined: 18 Nov 2006
Posts: 7910
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| Posted: Sat Nov 18, 2006 1:05 pm Post subject: Re: Student Loans |
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| bestsynd wrote: |
[ No other lenders receive such protection, according to the 60 Minutes broadcast.
Most people would agree that when the government loans money or guarantees loans, they should get their money back. The problem is that most people also agree that the student loan program is a good thing. But is it really?
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I don't see why the Sallie May model cannot be comrehensivley used by other independent lending institutions. Government lending institutions are bound to strict adherence of a carefully coded public policy, in order to safeguard "the people's" money. And it seems to be a program that is working.
I am curious why some would even think providing financial aid to students in need, is anything less than a good thing. Considering "risk" is a natural part of the borrower/lender arrangement.
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theLIBERTARIAN
El Loco
Joined: 24 Sep 2005
Posts: 10192
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| Posted: Sat Nov 18, 2006 9:25 pm Post subject: |
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That is a good question. I think student loans tend to raise the cost of education. If the money was not there (the loans), what would the colleges do- close down? I don't think so. They would lower the cost of the tuition.
I do understand that students with less money have a harder time getting in. There have always been scholarships though.
Sallie Mae gets paid even if the student defaults. The Feds back it up. So they may loan money to people that are bad credit risks. What do they have to lose? Plus, after the feds pay the loan off, Sallie Mae can still go after the student using outside collection agencies. It is one of the few loans that can be used to attack even Social Security. Students who don't pay have a bigger problem than people who default on regular loans. They are really screwed.
My dad, a retired teacher, said he was down at some exclusive lakefront properties (I think it was an exclusive country club or something) and the best homes were owned by School Administrators. I told him what I thought about the student loans and how so much money is now being pumped into higher education, and he put two and two together.
Also, the poor get sucked into these horrible loans, not the rich. |
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Crispy
Forum Guru
Joined: 10 Sep 2005
Posts: 1909
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| Posted: Sat Nov 18, 2006 11:15 pm Post subject: |
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I got a grant that covered pretty much most of my tuition. I do have 2 small loans to repay but my payment will only be $100 a month. My sister in law on the other pays $1,200 a month.. she went to law school though.
What gripes my ass is there are women I go to school with, one knucklehead in particular, that started the same day as me and already quit. She was totally lazy.. never was prepared, always cheated on her tests etc..
On our intro final she actually had the answers written on her leg! I mean, come on! 
Those people don't deserve the loans and grants. |
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theLIBERTARIAN
El Loco
Joined: 24 Sep 2005
Posts: 10192
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| Posted: Sat Nov 18, 2006 11:25 pm Post subject: |
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| My daughter is going to school with grants and loans right now. I am a little concerned. I have heard that if you default, you are screwed. |
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theLIBERTARIAN
El Loco
Joined: 24 Sep 2005
Posts: 10192
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| Posted: Sat Nov 18, 2006 11:27 pm Post subject: |
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| BTW, what are you taking? In school that is... |
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Crispy
Forum Guru
Joined: 10 Sep 2005
Posts: 1909
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| Posted: Sat Nov 18, 2006 11:28 pm Post subject: |
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Ya know, they almost make it impossible for that to happen.
I got a loan when I went to school.. geez, 12 years ago? Man, I'm old!
Anyway, my payment wasn't big but I was newly married and broke as a joke. I got a deferrment and they worked with me on it until it was repaid.
That time before we signed our loan papers they showed us this stupid film about what happens if you default. It was almost as bad as the "Blood Flows Red on the Asphalt" we use to see during drivers ed.
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Crispy
Forum Guru
Joined: 10 Sep 2005
Posts: 1909
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| Posted: Sat Nov 18, 2006 11:29 pm Post subject: |
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| theLIBERTARIAN wrote: |
| BTW, what are you taking? In school that is... |
Nursing 
Now if I can just get over my catheter phobia.  |
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Crispy
Forum Guru
Joined: 10 Sep 2005
Posts: 1909
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| Posted: Sun Nov 19, 2006 11:46 am Post subject: |
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| Eric Reyes wrote: |
| theLIBERTARIAN wrote: |
| That is a good question. I think student loans tend to raise the cost of education. If the money was not there (the loans), what would the colleges do- close down? I don't think so. They would lower the cost of the tuition. |
I don't know about that. Lowering the cost of tuition could lower the quality of education in particular institutions. As it is, there are plenty of schools where the money is not there, and as highly qualified teachers are, education quality continues to suffer.
Tuition is not an abstract and arbitrary thing. It is a legitimate cost. Some can afford the cost and others cannot. The ones who cannot afford the legitimate cost, should be helpeed IMO because they are productive citizens, now and in the future. |
bingo |
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theLIBERTARIAN
El Loco
Joined: 24 Sep 2005
Posts: 10192
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| Posted: Sun Nov 19, 2006 1:42 pm Post subject: |
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| Eric Reyes wrote: |
| theLIBERTARIAN wrote: |
| That is a good question. I think student loans tend to raise the cost of education. If the money was not there (the loans), what would the colleges do- close down? I don't think so. They would lower the cost of the tuition. |
I don't know about that. Lowering the cost of tuition could lower the quality of education in particular institutions. As it is, there are plenty of schools where the money is not there, and as highly qualified teachers are, education quality continues to suffer.
Tuition is not an abstract and arbitrary thing. It is a legitimate cost. Some can afford the cost and others cannot. The ones who cannot afford the legitimate cost, should be helpeed IMO because they are productive citizens, now and in the future. |
I do agree that if the money is pulled from the loan programs that that means the money will be pulled from the colleges. Will it affect the quality - yes. But IMO, this does not justify loans to young people. They can still make it to community college, and if they excel, they can move on.
To be honest, I would have rather my daughter go to a community college part time and work full time. She chose to go to Santa Cruz full time an work part time. I hope for the best obviously. |
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Guitarras Reyes
Forum Guru
Joined: 18 Nov 2006
Posts: 7910
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| Posted: Sun Nov 19, 2006 2:23 pm Post subject: |
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UC Santa Cruz Dan!!!
Your daughter is gonna be GREAT!!! I'm glad she can attend that over community college; it matters. Even in community college expenses are necessary. The fact is, most college grads, go on to bigger and better things than those who do not.
I know she is your little girl and probably doesn't know life as well as you, but for what its worth, I give both of you credit. And frankly, I think I understand EXACTLY NOW where you are coming from. You are such a good dad, its disgusting.
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Crispy
Forum Guru
Joined: 10 Sep 2005
Posts: 1909
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| Posted: Sun Nov 19, 2006 3:25 pm Post subject: |
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| Eric Reyes wrote: |
UC Santa Cruz Dan!!!
Your daughter is gonna be GREAT!!! I'm glad she can attend that over community college; it matters. Even in community college expenses are necessary. The fact is, most college grads, go on to bigger and better things than those who do not.
I know she is your little girl and probably doesn't know life as well as you, but for what its worth, I give both of you credit. And frankly, I think I understand EXACTLY NOW where you are coming from. You are such a good dad, its disgusting. |
Eh, your both disgusting  |
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theLIBERTARIAN
El Loco
Joined: 24 Sep 2005
Posts: 10192
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| Posted: Sun Nov 19, 2006 3:47 pm Post subject: |
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| We all want our kids to be self sufficient. I hope she will be. |
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Ms. Dancealot
Forum Guru
Joined: 04 Nov 2006
Posts: 463
Location: State of Flux
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| Posted: Sun Nov 19, 2006 5:03 pm Post subject: |
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Wow! Nurse Crispy!!!!!
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... Other dancers may pee on the floor, but my eyes will see only you ... |
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Crispy
Forum Guru
Joined: 10 Sep 2005
Posts: 1909
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| Posted: Sun Nov 19, 2006 10:01 pm Post subject: |
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| Ms. Dancealot wrote: |
| Wow! Nurse Crispy!!!!! |
Yeah. It's all about the scrubs, turns guys on (especially the Elvis ones).
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