Student loans to hit 1 trillion this year.

[mechanicx]

Originally Posted By: javacontour
Originally Posted By: Tempest
Quote:
I'm thinking a great way to have that happen AND get the government nose out from inside the tent is to have the loan programs run by the schools with the schools on the hook for the loans if their students can't pay.

Interesting idea, but the only way that will happen is if government mandates it, so it won't really be getting the government out of it.

On going policy will allow people that engage in "public service work" to have their tuition forgiven after 10 years. This limitation on having to pay back loans will have additional inflationary pressure on college tuition as well.



Sure can get the government out of it. They stop guaranteeing the loans. The suggest if they want student loans to continue, that THEY work with the banks to guarantee the loans themselves.

One aspect of the problem is there is a third party who is on the hook for the loans if the student do not repay.

Get that third party out of the equation. Make it so that only the school and the bank are on the hook if the student doesn't repay.

Once it's their money at risk, they'll pay closer attention to the student, the school and the degree program.


I agree. Your reasoning is similar to mine. The result is less loans would probably be issued and at slightly higher interest rates, but maybe less loans would not have all that many downsides in the overall scheme of things.

 

[Tempest]

Quote:
Make it so that only the school and the bank are on the hook if the student doesn't repay.

Who is going to "make it so"?

 

[mechanicx]

Originally Posted By: Tempest
Quote:
Make it so that only the school and the bank are on the hook if the student doesn't repay.

Who is going to "make it so"?


The invisble hand of the free market fairy?

 

[saberz]

Originally Posted By: Win
Originally Posted By: mechanicx
... And if a student completes their degree, it's not entirely their fault if economic conditions make it not possible to repay the loans.


But isn't that where this whole thing started? If a kid wants to study art history or portugese literature or some other arcane subject, well good on them, but when there are limited, in the best of times, economic benefits for that kind of knowledge, who should foot the bill for that mostly useless schooling? I don't see why joe taxpayer, who had nothing to do with that bad decision, should pick up the tab. Let the kid, his parents, or the school pick it up.

And some people take way too long to get through school. I had friends that took 5-6 years to get one degree. Why should people be allowed to borrow money year after year and run up a big loan balance because they want to loaf through school? They shouldn't.


Schools shouldn't offer degree's for certain subjects. But then you run the chance of only filling mainstream roles and then an overabundance of graduates(again) with no jobs(again). It's the same problem no matter how you hash it out.

 

[javacontour]

Originally Posted By: Tempest
Quote:
Make it so that only the school and the bank are on the hook if the student doesn't repay.

Who is going to "make it so"?


I can't answer without violating the rules here. But regardless where you are politically, if voters start voting out those who find one way or another to keep spending, eventually those who run for office will get the idea that perhaps we don't need all these costly subsidies for both the rich and the poor.

But as long as folks at all points on the political spectrum think they can get something for nothing, such programs will continue.

It's not really a political problem, it's an entitlement problem at all levels. To me, the only solution is to cut off the funds, at all levels and let sanity return to all the distorted systems.

 

[Tempest]

Originally Posted By: mechanicx

The invisble hand of the free market fairy?

In this thread you complain about all of the government money flowing into student loans, and now you denigrate the free market.

Which is it?

 

[mechanicx]

That's a fair question. The simple answer is I don't have complete faith in either and prefer a mix of both. It's all in the details and execution.

 

[saberz]

Tried to add more but it my edit expired :|

Even if you were to make the schools liable, what would it
accomplish. You still run into the issue where:

-1. The amount of people looking for jobs is far greater than the amount of jobs available. With or Without "higher" education.

-2. There should be some massive reform/restructuring of how these tuition's are priced.

It seriously seems like its a bubble waiting to burst. Schools are enrolling more and more students year after year. Most Universities have other means of income as well besides Tuition.

-Parking stickers/badges. When I was going to school it was $120 a semester, basically $240 a year per students(probably more). Say you have 6000 students attending at 120 a semester, thats nearly 720,000 dollars, or 1.4 million per year in PARKING.(this is an example).

Student Enrollment 2006 by University:
http://www.happyschoolsblog.com/largest-us-universities-by-student-population/


-My University didn't have enough parking for all the students. 8 huge lots, PACKED. Tickets issued en-masse for any illegal parking. You have to get to class either way. Tickets issued by none other than the Campus Police(own lodgings and vehicles, paid for by your tuition).

-Books/Materials. Not sure why a book should be $500 for Business Law(yes this was what I paid 10 years ago). They now have some new digital version that expires at the end of the semester where you still pay $60-100 for the material but it isn't yours.

-If your school is decent with sports, revenue from events. Revenue from theatre events, revenue from libraries, printing facilities etc.

-Renting of Auditoriums(our University would rent it out for Trade Shows/Expo's etc).

So you would think with these alternate streams of revenue they could somehow stop the Tuition increases. Instead they focus on building more Dorms, less parking, and raising the prices of credits more and more. And students end up being saddled with more and more loans.

When I started in 1999, I attended Community College for a year at 1250 for a semester, not bad. After the first year I transferred to a University. Sophomore year was 2500k per semester, Junior year was 3k, Senior year was 4k. Now I hear its roughly 8-10k from some of my friends brothers who are in attendance at the same University.

My brother went to a more prestigious school and I can't fathom the amount owed.

 

[mechanicx]

Originally Posted By: Anies
Tried to add more but it my edit expired :|

Even if you were to make the schools liable, what would it
accomplish. You still run into the issue where:

-1. The amount of people looking for jobs is far greater than the amount of jobs available. With or Without "higher" education.

-2. There should be some massive reform/restructuring of how these tuition's are priced.


Agree with -1. but that is a problem that transcends schools and what does allowing students to easily get into debt help or accomplish. For -2. that's exactly what drying up easy loans and funding would do. It would help stop fueling the tuition increases. It's the principle if so much money wan't flooding into the education market, demand and prices would drop.

Quote:
It seriously seems like its a bubble waiting to burst. Schools are enrolling more and more students year after year. Most Universities have other means of income as well besides Tuition.

-Parking stickers/badges. When I was going to school it was $120 a semester, basically $240 a year per students(probably more). Say you have 6000 students attending at 120 a semester, thats nearly 720,000 dollars, or 1.4 million per year in PARKING.(this is an example).

Student Enrollment 2006 by University:
http://www.happyschoolsblog.com/largest-us-universities-by-student-population/


-My University didn't have enough parking for all the students. 8 huge lots, PACKED. Tickets issued en-masse for any illegal parking. You have to get to class either way.

-Books/Materials. Not sure why a book should be $500 for Business Law(yes this was what I paid 10 years ago). They now have some new digital version that expires at the end of the semester where you still pay $60-100 for the material but it isn't yours.

-If your school is decent with sports, revenue from events. Revenue from theatre events, revenue from libraries, printing facilities etc.

-Renting of Auditoriums(our University would rent it out for Trade Shows/Expo's etc).

So you would think with these alternate streams of revenue they could somehow stop the Tuition increases. Instead they focus on building more Dorms, less parking, and raising the prices of credits more and more.


I don't disagree there, but all the loans and funding just support this inflation.

 

[wallyuwl]

Originally Posted By: VeeDubb
Your really amazing. You seem to know a lot about what is going on in someone else's head.

The moral of the story is you don't know as much as you think you know. You are very book smart but are frankly clueless sbout the real world. You are unqualified to lecture as much as you do about situations you've never been in.

 

[saberz]

lol

 

[Mr Nice]

I keep hearing radio ads from University of Miami for their 'executive MBA ' program and I can see why some young students think it will advance their career with a piece of paper. I think you are better off 'marrying up' and not worry about education in today's job market.

 

[Turk]

Originally Posted By: LT4 Vette
I think you are better off 'marrying up' and not worry about education in today's job market.

 

[Mr Nice]

Lots of women are doing that, they realize an education will only go so far.

Marrying into a family with legitimate wealth changes their life in the blink of an eye. Women are holding out for a guy that provide them the lifestyle they need..... not a life of poverty and struggles.

 

[VeeDubb]

Originally Posted By: LT4 Vette
Lots of women are doing that, they realize an education will only go so far.

Marrying into a family with legitimate wealth changes their life in the blink of an eye. Women are holding out for a guy that provide them the lifestyle they need..... not a life of poverty and struggles.



Even if your a man, never fear. You can follow this guy's lead:

http://www.mogulite.com/tag/duchess-of-alba-marrying-younger-man/

 

[Cutehumor]

occupiers demand for student loans to be forgiven not modified!

msnbc article

 

[Tempest]

Originally Posted By: Cutehumor
occupiers demand for student loans to be forgiven not modified!

msnbc article


"New York University professor Andrew Ross" Explains a lot about the education system in this country.

"Ross told the crowd of about 50 people" At least his audience is appropriate.

Quote:
When one person asked if the group considered education to be a “right” or a “privilege,” there was a wave of “twinkle” hand gestures from the crowd (an upward wiggling of fingers) to show that they agreed education was a “right.”


We are reaping what we sow with entitlement society.

 

[Tempest]

Quote:
You can see that student loans have grown by 511% since 1999. Meanwhile, disposable income has grown by just 73%. As this chart also shows, most outstanding student loan debt (82%!) was accrued by students over just the past decade.


From an article in The Atlantic.

 

[Win]

I nearly shed a tear when I read this:

"Ross acknowledged the irony of protesting against one of the main sources of his salary but added, “I feel very bad that my salary has actually been financed (by these debts). … To me it is just heartbreaking to see my students carry so much debt. It’s just immoral.”

He could always resign if it bothers him that bad, my bet will be that it really doesn't bother him very much.

I'll bet these slackers are too real world ignorant to even know that if their debt is forgiven, that is an immediate taxable event, and the tax collector is a lot tougher than the student loan collector.

We can look forward to another round of petulant behavior for more special treatment.

 

[JHZR2]

Originally Posted By: stephen9666
The facts are simple. College athletics lose money at the vast majority of schools. It's all summed up here, in a report put together by the NCAA. (Which I posted before.)

http://www.ncaapublications.com/productdownloads/REV_EXP_2010.pdf

Quote:
A total of 14 athletics programs in the FBS reported positive net revenues for the 2009 fiscal year, which represents a decrease from the 25 reported in 2008. The gap between the “profitable” programs and the remainder continued to grow, however a bit more slowly.




And the NCAA is raking in money too... See here:

http://www.thepostgame.com/blog/dish/201111/ncaa-unintentionally-leaks-hidden-financial-secrets

Tax, tuition and ticket dollars at work???!?