» Politics and other things

Student debt stalemate will hammer millions of undergrads

(20 posts)
  • Started 7 years ago by Vitalogy
  • Latest reply from Vitalogy

  1. Vitalogy

    Time is running out for Congress to act. And low-income college students will pay a high price if a deal can't be reached by Monday's deadline.

    Interest rates on many new subsidized Stafford loans will skyrocket—from 3.4 percent to 6.8 percent—on Monday, unless the Senate reaches a compromise.

    The likelihood of that happening dimmed Friday as Congress recessed for the Independence Day holiday week.

    Most in Congress agree loan rates should to stay lower than 6.8 percent, at least for the subsidized Stafford loans used by the country's lowest-income students. But they're stuck on how to get there.

    Republicans want to let the rates fluctuate with the markets every year and use the proceeds for deficit reduction. Democrats say that's unreasonable and want to cap how fast rates can rise.

    I think allowing student loan interest rates to double, or, be subject to market whims is wrong and risky. However, One of the main reasons the cost of higher education has increased FAR above inflation over the last 20 years is a result of easy credit. Think about it. Who else would give you a loan of $50K without being able to prove you can pay it back? Good luck finding any lender for anything else that will lend money to you on the hope you'll pay it back if shit works out down the road. The saving grace for the lender is that student loan debt NEVER goes away. You take it to the grave, even after a BK. That's the only reason why lenders lend the money, it's secured against your living body.

    I'd like to see low interest rates for those that want to go to college, but there should be tighter controls on how much money you can borrow. There are too many students getting way too much money for their dream school and have NO concept on the obligation they are entering into long term.

    And, we all know the school doesn't matter in the real world anyway. It's who you know, how hard your work, and how lucky you get.

    Posted on June 28, 2013 - 07:01 PM #
  2. radiodork

    Are educational system is so Fuc*ed up and so damn expensive, its beyond pathetic. Not to mention all of the USELESS Degrees that people spend 50 grand on. WOOOOHOOOO I just got a bachelors degree in History. Im so excited....But wait a sec what the Fuc&* am i going to do with a bachelors degree in History? There are no jobs with that degree. 99% of jobs teaching want a PHD or a masters degree.........(sigh)........ Loan rates SHOULD def. stay lower than 6.8%

    Posted on June 28, 2013 - 07:10 PM #
  3. Deane Johnson

    It pains me to agree with Vitalogy, but he's right on target.

    Posted on June 28, 2013 - 07:11 PM #
  4. Vitalogy

    Yes Deane, on target as usual. It's your stubbornness that holds you back.

    Posted on June 28, 2013 - 07:18 PM #
  5. saveitnow

    Why would congress want to agree. Millions have been saved on this program when the middlemen (Bankers) were removed to save money (what Obama is saving us money?).

    Those same bankers have informed the GOP they want back in, or no campaign donations for 2014. So let's hear from the cons, how can you still vote for the GOP with crap like this?

    Posted on June 28, 2013 - 07:22 PM #
  6. Chris_taylor

    With a child in a private university, this means a great deal to not only me, but my child as well. Been watching this closely, and am now biting my nails.

    Thankfully, she is working towards a degree that has jobs. But college is also a place to grow up, too. Not everyone NEEDs to go to college, as Vita has eluded too, but those that choose to go and receive financial aid, don't need having to pay off a significant loan at ridiculous interest rates, after college.

    Posted on June 28, 2013 - 07:56 PM #
  7. radiodork

    Boy thats a great point Chris-Not everyone does need to attend college to get ahead in life.
    Im starting to think Trade Schools are better than universities. With a trade school you don't have a 4 year degree when you're finished, but at least you will have a job when you come out.
    I just see too many kids go to these EXTREMELY expensive universities and come out with a degree that they can do NOTHING WITH. So here they are 40 grand in debt and NO JOB!

    Posted on June 28, 2013 - 08:18 PM #
  8. Andrew

    Congress will probably come up with a compromise after July 4th when the get back into session. I heard that whatever they agree on will probably be retroactive to July 1.

    Posted on June 28, 2013 - 08:19 PM #
  9. Chris_taylor

    I was turned on to Sir Ken Robinson, whose has some wonderful wise words about today's educational system.

    Posted on June 28, 2013 - 09:00 PM #
  10. missing_kskd

    I think the cheaper we can make loans, the better off we are. Ideally, kids could qualify into secondary education and pay very little.

    Those kids will be able to take risks and start businesses much easier than the ones saddled with a lot of debt will be.

    Sure, some people will get masters in history, or something, but most won't, and the general education requirements insure they are capable on a reasonably broad spectrum.

    Gotta give some people leeway to find their way in life. That history major might teach at a school somewhere while authoring books, or doing studies on our past to great effect. Nobody knows.

    They could sit on their ass and bitch about how little the degree is too. Let 'em. They will have to figure it out just like everybody else does.

    Re: Trade schools

    I'm a fan, and right now a couple things would really benefit from increased legit trade school education:

    1. Computer code. 500 Billion market cap in the next few years.

    2. Manufacturing engineering, specifically automation, robotics, quality / process simulation and control, machining, advanced processes.

    There are probably others, but they lie outside my scope of familiarity.

    People who can do this will make a lot of money as the insourcing trend continues. Tons of companies out there right now that are either early adopters or potentials today, and very soon there will be an early majority that will pay extremely well.

    I'm considering some of this work. Yeah, another jump, or consulting on it at the least. Oh well. It's not like we don't have to keep hopping these days anyway.

    Posted on June 28, 2013 - 09:21 PM #