Student loans anyone - Obama Student Loan Policy Reaping Record $51 Billion Profit

I Love America said:
The irony is that Obama took over the student loans because it was immoral for banks to "profit" from college students. Apparently he wasn't opposed to "profit" just wanted tha profit to go to the gobblement instead.

BTW student loan debt is the next bubble that will pop IMO
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Do you believe that they may be purposefully driving the next "crisis" that cannot be let "go to waste" in a drive to "fundamentally change" America?
 
Superfreak said:
Well, they ARE giving away free money... those interest rates... nah, don't pay attention to them. Oh and as a side note to all you students, if you ever think about a chapter 7 filing due to the fact that you can't get a job in Obama's economy... sorry... you can't get rid of your student debt that way.
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Why is it free money? It's a loan. And has one of the highest repayment rates out there. And why is Obama getting the blame when Congress that passed the Reconciliation Act of 2012 and Obama signed it, which removed the private sector from the student loan process and eliminated federal payments to banks and moved the revenue from the lending process into federal coffers.

So what he did was take out the middleman (the banks) to save billions. Now y'all are bitching? Are you going to bitch when he lowers the interest rate to students too?
 
This is what happens when the federal government can borrow at record low interest rates while the student loan rate, which is set by Congress, is set to double in July. It's got nothing to do with "Obama student loan policy." In fact, Obama has proposed keeping the rates at 3.4% instead of having them increase.

Senator Warren has the best idea though:

On average, student loan borrowers end up carrying debt loads of $27,000. The interest rate on federal student loans is set to double this summer if Congress does not do anything about it. Sen. Elizabeth Warren, D-Massachusetts, has introduced her first piece of legislation - a bill that would give a steep, temporary discount, taking the interest rate from 3.4% to less than 1%.

The U.S. government has been lending money at a rate of about 0.75% to financial institutions for years, said Warren.

"We have students out there borrowing money to get an education, working hard. My view is if the American taxpayer is going to invest in those big, financial institutions by giving them a great deal on their interest rate, let's invest in those students by giving them the same deal," said Warren.
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http://thelead.blogs.cnn.com/2013/0...ses-deep-discounts-for-federal-student-loans/
 
Dungheap said:
This is what happens when the federal government can borrow at record low interest rates while the student loan rate, which is set by Congress, is set to double in July. It's got nothing to do with "Obama student loan policy." In fact, Obama has proposed keeping the rates at 3.4% instead of having them increase.

Senator Warren has the best idea though:



http://thelead.blogs.cnn.com/2013/0...ses-deep-discounts-for-federal-student-loans/
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Yes she sent around an email yesterday asking for support on that. I signed.
 
I had student loans of almost $40k between Great Lakes and Citi. Originally I was supposed to have $20k of that eliminated as part of an enlistment incentive, but some very helpful retention folks managed to not help me and I timed out on the benefit. At this point, my interest rates were uber-low, but I owed the companies about $580 per month, and I was in the market for buying a house.

Also, those asswholes at Citi, whom I was paid well ahead on, kicked me over to Sallie Mae, and after my experience with an incompetently managed Dept. of Ed website, I was not in the mood for the dreaded Sallie. Also, I was no longer considered "paid ahead."

So, I consolidated through FedLoan servicing. Yes, astronomical rate, but comfortable monthly payment. If I'm still paying in 10 years, the current rules say I'm eligible for loan forgiveness.
 
Threedee said:
I had student loans of almost $40k between Great Lakes and Citi. Originally I was supposed to have $20k of that eliminated as part of an enlistment incentive, but some very helpful retention folks managed to not help me and I timed out on the benefit. At this point, my interest rates were uber-low, but I owed the companies about $580 per month, and I was in the market for buying a house.

Also, those asswholes at Citi, whom I was paid well ahead on, kicked me over to Sallie Mae, and after my experience with an incompetently managed Dept. of Ed website, I was not in the mood for the dreaded Sallie. Also, I was no longer considered "paid ahead."

So, I consolidated through FedLoan servicing. Yes, astronomical rate, but comfortable monthly payment. If I'm still paying in 10 years, the current rules say I'm eligible for loan forgiveness.
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Bum
 
Student loans anyone - Obama Student Loan Policy Reaping Record $51 Billion Pro

Damocles said:
Do you believe that they may be purposefully driving the next "crisis" that cannot be let "go to waste" in a drive to "fundamentally change" America?
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Who knows? It would be very Machiavellian for them to do so.

I am drive a good conspiracy with the best of them but I don't know if I will spin that one up. What I can say is that their actions obviously show a complete lack of faith in the free market (no surprise) and they obviously don't understand basic economics.

Suffice it to say since the federal government tried to make college more affordable it has only gotten more expensive.
 
Between the lost $20k and the steep interest rate, if I only keep paying the minimum payment, then the government could potentially make $57,000 off of me when all is said and done. Well played, Uncle Sam!
 
blackascoal said:
So would I .. cradle-to-grave free education and healthcare for all citizens.

If Cuba, Venezuela, Libya, and other countries can do it .. what's the problem?

Student Debt and the Crushing of the American Dream
By Joesph Stiglitz
excerpt

America is distinctive among advanced industrialized countries in the burden it places on students and their parents for financing higher education. America is also exceptional among comparable countries for the high cost of a college degree, including at public universities. Average tuition, and room and board, at four-year colleges is just short of $22,000 a year, up from under $9,000 (adjusted for inflation) in 1980-81.

Compare this more-than-doubling in tuition with the stagnation in median family income, which is now about $50,000, compared to $46,000 in 1980 (adjusted for inflation).
http://opinionator.blogs.nytimes.com/2013/05/12/student-debt-and-the-crushing-of-the-american-dream/

Student debt is crushing American education and students.

PROFIT is the problem.
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You forget to mention, the USA has a much higher graduation record than nations that give free education/indoctrination.
Guess if you work for something, you value it!!
 
Student loans anyone - Obama Student Loan Policy Reaping Record $51 Billion Pro

With the cost inflation of college and the poor job prospects in the Obama economy, people are questioning the value of a college education. They should.

This is why I hate the GOP. They are so not creative. This is a perfect opportunity to stick it to democrats. They should come out with a House bill calling for "price controls" on all colleges and universities. No college can charge more than $5000 a year PERIOD. Watch what free market adherents left wingers will turn into.
 
I Love America said:
With the cost inflation of college and the poor job prospects in the Obama economy, people are questioning the value of a college education. They should.

This is why I hate the GOP. They are so not creative. This is a perfect opportunity to stick it to democrats. They should come out with a House bill calling for "price controls" on all colleges and universities. No college can charge more than $5000 a year PERIOD. Watch what free market adherents left wingers will turn into.
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Retreaded as usual
You mean obama's stock market that doubled?
 
dealing with fedloan services right now, since my daughter graduated in December.......total incompetence......they treat each years loans as separate balances, but all use the same account number....so I get four statements a month, each with a different balance.......I sent in an $8000 payment and they send me letters threatening me because I am behind....I call them, they applied all the payment to one loan and showed the other three as late....
 
PostmodernProphet said:
dealing with fedloan services right now, since my daughter graduated in December.......total incompetence......they treat each years loans as separate balances, but all use the same account number....so I get four statements a month, each with a different balance.......I sent in an $8000 payment and they send me letters threatening me because I am behind....I call them, they applied all the payment to one loan and showed the other three as late....
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Awh!
 
Darla said:
I would fully support free universal college and wish we had it.
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Now there are 2 of us - let's keep talking it up.

It's almost impossible to put hard #'s on it, but I have a hard time imagining the return on investment for that not being pretty huge. We keep talking about how we're losing ground in the world in education, technology, medicine, etc. Let's get everyone a higher degree, without crushing debt, and see what happens.
 
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