Obama's Student Loan Relief Plan

FLDoula · Oct 27, 2011

Thanks for posting this. Well stated.

In defense and clarification. The reason this wonderous relief will cost the tax payer money is because the money that the students are saving in their loan repayments is paid for by tax-payers. Any time you hear of government stimulus, relief,and aid, it's coming from the tax pool. From the public finances. You cannot just magically get something paid for, the money comes from somewhere and it sure itsn't coming from Obama's pocket.
An additional point of clarification: the reason FLdoula stated that anytime the government gets involved is bad is generally because it's true. Government involvement = regulation = cost/burden on tax payer + cost/burden on business = failing economy. Now politicians are using the failing economy that they themselves caused to self-proclaim themselves as hero's coming to the rescue with relief and aid. It's the ultimate hypocrisy.

Despareux · Oct 27, 2011

Or just make the cost of a college education realistically attainable. Maybe, instead of student loan forgiveness, college costs would be based on a fee scale WITH the stipulation of so many years/hours of community service [based on their degree] after graduation based on how much the student did NOT have to pay. If community service isn't met per year, turn it into loans that the student will have to pay back.

Clearly, something must be done.

llg, PhD, RN · Oct 27, 2011

An additional point of clarification: the reason FLdoula stated that anytime the government gets involved is bad is generally because it's true. .

So ... you are an anarchist who believes that the government should not try to help anybody do anything?

Not even have a police force? Not even have a fire-fighting ability? Not have a national defense? Not help poor people feed themselves, get medical care, etc.? Not make or enforce laws protecting the weak (or minorities) against the possibly selfish impulses of the numerous or strong? Do you want to live in a lawless society where the most powerful can get whatever they want by forcing their will onto those less powerful?

If we take you at your word that you believe that anytime the government gets involved, it is generally bad ... then that's the anarchist's position is the logical extension of your stated beliefs.

I wouldn't want to live without government involvement of any kind in any thing. I see the good things government can do as well as the mistakes it can make. Life is complex -- and most things have both "up sides" and "down sides." Things are rarely totally one way or the other.

JBMmom, MSN, NP · Oct 27, 2011

I don't think the position stated is readily extrapolated to anarchy, but I do think that government involvement, in many instances, does not lead to the best practices. I think that one of the reasons college costs have gotten so out of control is that colleges know that people have government backed loans available to them (at the taxpayers' expense), so they're increasing their rates.

In my opinion, we're pushing the college model where sometimes we shouldn't. A very focused education that provides technical training and practical skills would benefit many. Students would come out of their education ready to work in their specific field, without having spent thousands of dollars to be "well- rounded". I know that for myself, the money spent on some of my classes was a complete waste, and knowing that I had to pay for that sociology class for 30 years would aggravate me to no end.

FLDoula · Oct 27, 2011

Not delusional....not by a longshot. If I am wrong about taxpayers paying for bailouts please enlighten me on exactly WHO will be paying. The government does have beneficial programs but these bailouts are not "programs" that benefit the taxpayers whatsoever. They only benefit people who were not properly counseled on responsible borrowing. My 4 kids and I all have student loans so I've seen many times over the "counseling" financial aid offices do and the ease with which a student could obtain not just tuition fund but also enough to live on and then some from lenders. That is not what the student loan program was designed to do.

We're paying back ours and my husband and I don't appreciate having to pay back the loans of those who will be partially forgiven. In fact, I don't know of anyone who will want to do that.

Maybe these articles will make sense.

http://www.foxnews.com/politics/2011/10/26/obama-taps-taxpayers-for-student-stimulus/

http://www.mindingthecampus.com/originals/2011/10/the_ibr_student_loan_repayment.html

Instead of turning this into a personal attack that I'm anti government and delusional please tell us why you think this bailout program is a beneficial idea. :)

If your position is as you state it, that government never does anything beneficial - there is really no point in discussing anything ever. Yours is a demonstrably delusional position.

ParkerBC,MSN,RN, PhD, RN · Oct 27, 2011

I think the plan is a good idea. There are multiple repayment plans currently available. People will need to meet certain income guidelines based upon their Adjusted Gross Income and the number of dependents. Not everyone will be able to take advantage of the program. However, I think there should not be a statute of limitations place on the loan. You make payments until the principal loan amount is paid in full.

Here is a table based upon borrowing $50,000.00 for one’s education:

20 years = 208.33

25 years = 166.67

30 years = 138.89

35 years = 119.08

40 years = 104.12

These amounts are of course no interest. However, the borrower will still pay back the borrowed amount. Hence, no dollar amount would be written off and picked up by the tax payers. Changes should be made to hardship deferments. If a student is not working, loans are placed in deferment until employment is secured. Then students can begin paying back the loans.

I agree that if a student signs a promissory note, he or she should pay the full loan amount back. I also believe banks should not be making the kind of profit they do on student loan interest given the loans are backed by the government. I AM glad the government stepped in and began the Direct Loan program.

ParkerBC,MSN,RN, PhD, RN · Oct 27, 2011

I don't think the position stated is readily extrapolated to anarchy, but I do think that government involvement, in many instances, does not lead to the best practices. I think that one of the reasons college costs have gotten so out of control is that colleges know that people have government backed loans available to them (at the taxpayers' expense), so they're increasing their rates.
In my opinion, we're pushing the college model where sometimes we shouldn't. A very focused education that provides technical training and practical skills would benefit many. Students would come out of their education ready to work in their specific field, without having spent thousands of dollars to be "well- rounded". I know that for myself, the money spent on some of my classes was a complete waste, and knowing that I had to pay for that sociology class for 30 years would aggravate me to no end.

The cost of everything has gone up (food, utilities, rent, gas, benefits, to name a few). Schools have operating costs and when those rise, the only other alternative is to increase tuition unless they are able to secure grants and alumni donations.

FLDoula · Oct 27, 2011

That was a leap. :confused:

So ... you are an anarchist who believes that the government should not try to help anybody do anything?
Not even have a police force? Not even have a fire-fighting ability? Not have a national defense? Not help poor people feed themselves, get medical care, etc.? Not make or enforce laws protecting the weak (or minorities) against the possibly selfish impulses of the numerous or strong? Do you want to live in a lawless society where the most powerful can get whatever they want by forcing their will onto those less powerful?

FLDoula · Oct 27, 2011

Yes, the cost of everything has gone up and we are all feeling it. My husband lost his job in 2009 and the salary of his replacement job is considerably less. Our costs and expenses didn't go down.

I agree that operating costs have gone up and there seems to be no end in sight. There is no one right answer for how, or if, this country will recover.

Did you know that the Uiversity of Central Florida President makes over $450,000 in base salary? Add on his bonuses and housing. (I've seen his house) Maybe more now that the new UCF School of Medicine Dean makes that much. Just saying.....

And with this.... I'm a dot. Just got the call that a baby is on her way! It's a beautiful day for a birth! Have a great day everyone!

The cost of everything has gone up (food, utilities, rent, gas, benefits, to name a few). Schools have operating costs and when those rise, the only other alternative is to increase tuition unless they are able to secure grants and alumni donations.

SummitRN, BSN, RN · Oct 27, 2011

The cost of everything has gone up (food, utilities, rent, gas, benefits, to name a few). Schools have operating costs and when those rise, the only other alternative is to increase tuition unless they are able to secure grants and alumni donations.

The cost of education has gone up at a rate FAR exceeding the cost increases you mentioned. It massively exceeds the rate of inflation.

WHY?

Two simple reasons:

1. Students "can" bear the burden because there is near infinite free money through loans. These loans are guaranteed profit so banks make them. Then schools can and do charge more.

2. State governments are cutting higher education budgets because students "can" bear the burden because there is near infinite free money through loans.

If there is no limit on what the customer can pay for a "must have" item like education, then there is no limit to the price and that is why we see prices going up 10% every year at public schools and for-profits lining up to charge people $65,000 for ADNs. The money comes from government backed loans and from private loans that banks are happy to make because federal laws make them nondischargable in bankruptcy. They'll get paid eventually, either by the student or the tax payer.

It is a government sponsored/inspired racked and the only ones who truly win are the banks and some schools (particularly for-profits). All Obama's proposal does is shift some more of the bank/school-profit-burden from students to tax-payers.