Comments on: Student loans: Exploiting America’s young http://blogs.reuters.com/great-debate/2013/07/01/student-loans-exploiting-americas-young/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: dustyred14 http://blogs.reuters.com/great-debate/2013/07/01/student-loans-exploiting-americas-young/#comment-83392 Mon, 20 Jan 2014 11:15:03 +0000 http://blogs.reuters.com/great-debate/?p=21993#comment-83392 The federal loans are the best thing that happened to students. They don’t pay the whole cost, but carry a 6.8% FIXED interest rate. That means less from JPMorgan at 11%

The $2500 tuition tax credit was also the only way I had the minimal food budget I had in college. Dark days, they were. Federal loans are much, MUCH nicer to you in repayment as well

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By: DariusByRemote http://blogs.reuters.com/great-debate/2013/07/01/student-loans-exploiting-americas-young/#comment-74011 Wed, 17 Jul 2013 21:29:00 +0000 http://blogs.reuters.com/great-debate/?p=21993#comment-74011 I have a theory.
I believe the government with the help of wall street bankers have bundled up student loans like they once did mortgages and sold them on the market. These “junk bonds” are then used to service off our governments debt obligations abroad mainly to China.
Why? These loans are unforgivable which was different from the mortgage crises when many of the loans went into foreclosure and ultimately wall street had to write these loans off and as you know led to the financial meltdown of 2008-2009. Today, the student loans are more secure due to the unforgivable terms. Also, if the student loans go into default the government can seize your tax refund in the event you have one. Student load debt has been reported to be upwards of 1.1 trillion dollars. Student loan rates have risen and congress has yet to take action. I believe the rate is from 5% – 8% based on information gathered from the(Federal Student aid Dept.) which is twice the amount of the current national rate for non-secured debt ,reported by the Federal Housing Finance Agency (FHFA) of 3.35 percent based on loans closed in January. Lastly, debtors are for the most part young and the chances that they will find careers were they will be able to service their loans at some point in time is worth the wait. Its a catch-22 you can put it off, but if you do it will rear its head when applying for a mortgage or purchasing a car. Your rate will be higher or will not be approved all together. So you better pay that loan off. So given this conspiracy, what is the likely hood of student loan reform? None to little cosmetic changes. It already been bundled and sold!

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By: bluepanther http://blogs.reuters.com/great-debate/2013/07/01/student-loans-exploiting-americas-young/#comment-73758 Thu, 04 Jul 2013 17:25:52 +0000 http://blogs.reuters.com/great-debate/?p=21993#comment-73758 What a dishonest article. “The machinations of bureaucrats setting arbitrary rates?” “Price fixing?” Students should get loans at the same rates the Wall Street fat cats got from the Fed when they were bailed out, just as Senator Elizabeth Warren has suggested.

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By: Decatur http://blogs.reuters.com/great-debate/2013/07/01/student-loans-exploiting-americas-young/#comment-73729 Wed, 03 Jul 2013 21:27:53 +0000 http://blogs.reuters.com/great-debate/?p=21993#comment-73729 Thanks for the reply Cassandra.

I almost entirely agree.

We under-prioritize education and thus shortchange our future. Education is seen as a threat by some economic and religious fundamentalists who like the status quo, or maybe like the 19th century even better. We need the modern combined equivalent of GI Bill, Sputnik scare and greatest generation national focus to make sure that our kids are smart enough when they grow up to a world where each American has 10 or 20 educated peers, so they are looked to by the world for knowledge and solutions, so they ‘add value’ and can export ideas and expertise, continuing as best we can the tradition of ‘American know-how’.

We undercut educators (the teachers we hold responsible for our kids performance) by lumping them in as bad guys with the current anti-government rhetoric. This is where I disagree with you.

Education is being undercut by

1) greed (not wanting to pay taxes for some kid who’s not in your family, but could someday be your doctor, the designer of your nursing home, or pilot the plane you fly in);

2) ideology where privatization is always better even when charter schools track records are their own can of worms, no panacea alternative to public schools; and

3) local politics pandering to ignorance or ideology, re-trying the Scopes trial over and over at a county level.

Yes, I wish we emphasized English more vs. multi-lingualism in education and in media and commerce, but we can get there faster by expanding English teaching to get kids to where they are fluent, become ‘mainstream’ even if they started as immigrants, and can go on to do their best in other topics – especially STEM. So I think funding ESL/ELL vs STEM vs band/art etc., in many State government debates are false choices – we need to give our kids’ brains all those areas of knowledge and experience.

I don’t work in education (I do volunteer some) but as a parent of kids going to magnet schools and a technical worker, I care a lot about the neglected condition of education and the imapct I fear it will have on our economy. Cutting education funding, or adding barriers like more expensive student loans, is a classic example of ‘being penny-wise and pound-foolish’, and taking far too short-term a view of the topic. Eisenhower’s comparisons of society being shortchanged the cost of schools or hospitals vs. added squadrons of missiles or jet bombers are just as valid today as they were 50+ years ago. Back then it was argued to moderate defense build-up from growing at the cost of domestic needs, today it should be argued that gutting education is a cost we can’t afford for the sake of austerity, making it instead our priority to maintain the lowest tax levels in generations.

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By: Decatur http://blogs.reuters.com/great-debate/2013/07/01/student-loans-exploiting-americas-young/#comment-73727 Wed, 03 Jul 2013 21:14:59 +0000 http://blogs.reuters.com/great-debate/?p=21993#comment-73727 Thanks for lengthy reply.

I almost entirely agree with you Cassandra.

We underprioritize education and thus shortchange our future. Education is seen as a threat by some economic and religious fundamentalists who like the status quo, or maybe like the 19th century even better. We need the modern combined equivalent of GI Bill, Sputnik scare and greatest generation national focus to make sure that our kids are smart enough when they grow up to a world where each American has 10 or 20 educated peers, so they are looked to by the world for knowledge and solutions, so they ‘add value’ and can export ideas, expertise, continuing the tradition of ‘American know-how’.

We undercut educators (the teachers we hold responsible for our kids performance) by lumping them in as bad guys with the current anti-government rhetoric. This is where I disagree with you.

Education is being undercut by greed (not wanting to pay taxes for some kid who’s not in your family, but could someday be your doctor, the designer of your nursing home, or pilot the plane you fly in); and ideology where privatization is always better even when charter schools track records are their own can of worms, no panacea alternative to public schools. Yes, I wish we emphasized english more vs. multi-lingualism in education and in media and commerce, but we can get there faster by expanding english to get kids to where they are fluent and can go on to do their best in other topics – especially STEM. So I think funding ESL/ELL vs STEM vs band/art etc., in many State government debates are false choices – we need to give our kids’ brains all those areas of knowledge and experience.

I don’t work in education (I do volunteer some) but as a parent of kids going to magnet schools and a technical worker, I care a lot about the neglected condition of education and the imapct I fear it will have on our economy. Cutting education funding, or adding barriers like more expensive student loans, is a classic example of ‘being penny-wise and pound-foolish’, or taking far too short-term a view of the topic.

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By: EconCassandra http://blogs.reuters.com/great-debate/2013/07/01/student-loans-exploiting-americas-young/#comment-73704 Wed, 03 Jul 2013 15:43:41 +0000 http://blogs.reuters.com/great-debate/?p=21993#comment-73704 I have made the same argument as my reply to Decatur several times before, but have NEVER received any response.

Is there ANYONE out there who understands what I am saying, or are you all so wrapped up in your elitist love affair that you cannot see she has warts, and is ugly as sin.

Or has our “educational system” finally succeeded in producing only people who are incapable of rationally realizing what the problems really are?

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By: EconCassandra http://blogs.reuters.com/great-debate/2013/07/01/student-loans-exploiting-americas-young/#comment-73702 Wed, 03 Jul 2013 15:34:44 +0000 http://blogs.reuters.com/great-debate/?p=21993#comment-73702 @ Decatur —

You are obviously directly involved in education, judging by the focus of your comment.

However, I must take strong exception to what you are saying for the following reasons:

———————————–

(1) You state “The trends supported by the right are concerning for our future, as 300 million Americans hope to prepare our kids to be the ones rewarded when competing with a global middle class that will apporach 3 billion in their lifetime”.

I am not sure who you mean exactly by the “right”, since our entire government is actively involved in cheating future generations of a chance for any kind of decent life, much less that of the anomalous “middle class” that is fast disappearing.

The argument of “competing with a global middle class” is a strawman argument to distract the American people from the fact that our main problem with education is our own government.

I have said before in previous comments that there is no economic reason why the US elite should improve our school system when it is much cheaper to simply (a) export jobs to a third world country, or (b) for those jobs that cannot be exported, to import cheap labor from the “global marketplace”.

The solutions to our incredibly poor “educational system” do not lie within the school system as most would have you believe (e.g. poorly trained educators not up to the task), but with the ability of the elite class to shift jobs and labor at will.

There is absolutely NO WAY the US educational system can EVER “compete” with the global labor market.

To give you an example, Walmart employment policies are a good proxy for what is happening to the US economy. They hire at the lowest wage possible, with no benefits and utilize “part-time” labor as much as possible.

THIS “Walmart Model” is where the US educational system is taking us — to a system of low paid workers with an extremely high percentage of “temporary” employees — who would function like “seasonal workers” hired by companies when they need additional labor (e.g. I used to use “Manpower Inc” to fill temporary accounting positions during audit season), then simply let them go after they are no longer needed.

THAT is the IDEAL WORKFORCE for ANY company for jobs that cannot be outsourced overseas — no lengthy job search, health care and benefit packages, vacation issues, or potential problems when an employee doesn’t work out (legal issues) — ALL aspects of hiring employees which cost money (i.e. lost profits) for the company.

THIS is what the free market system is doing to US education, and the American people are apparently too stupid to understand that the ONLY thing companies care about is PROFITS.

WHY, when the entire work is a “temp agency” would they willingly choose to invest in US schools?

(2) You state, The rise of smaller private colleges as student loan mills” to which I agree, and is proof of my accusation, since NONE of these people will EVER get decent-paying jobs and a future as a result of their efforts, but only MASSIVE amounts of student loan debt.

(3) You state “The disincentives for higher education of any type unless you can ‘borrow from your parents’” which is absolutely true, since from an elite point of view, their children are the future leaders of this nation, so why should they deliberately undercut their the future of their children by funding a school system of those who are not “leadership material”?

The huge reduction in school funding for higher education that you see now compared to a few decades ago is literal proof of what I am saying.

(4) You state “The false choices, like having to choose between better english, or science math and gifted programs (we need both, especially here in the southwest where better english would lift more kids up into life-long higher achievement).”

NO child should be allowed into our school system who is not fluent in English.

ANY argument to the contrary is NOT sufficient reason to justify holding back those who are fluent in English, since it handicaps them right from the start and many never catch up.

THIS is probably THE MAJOR reason why our school system is struggling — we have deliberately dumbed it down to the lowest common denominator, and then we whine because our school systems are so poor.

Attempting to create a level playing field at the lowest common denominator level will destroy the future for any child who is forced to hobble along at that level. We are deliberately forcing our children to become mental cripples, all for the sake of some idealistic “multicultural” bullshit.

(5) You state “The backwards anti-science bias and even rewriting of history (less Jefferson in Texas books) that politicians force onto schools, we’re not justanti-evolution and anti-climate science, we’re even anti-metric.”

ALL of these problems would immediately disappear IF we had a strong, uniform system of education.

Needless to say, we must remove religion, or religious-based teaching from the school system.

(6) You state “We had great success with two generations of easier access to higher education: the GI Bill and the middle class wages of the GI Bill adults that schooled the next generation. Now in the face of growing competition, we shoudl be vigorously promoting competition to raise up new inventors, engineers and entrepeneurs, not raising barriers to schooling.”

TRUE!

And we as a nation are doing our level best to make sure that NEVER happens, mainly by refusing to face the reality of what the world has become.

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By: EconCassandra http://blogs.reuters.com/great-debate/2013/07/01/student-loans-exploiting-americas-young/#comment-73700 Wed, 03 Jul 2013 14:29:45 +0000 http://blogs.reuters.com/great-debate/?p=21993#comment-73700 @ JL4 —

In your reply to COindepent you deride him for his comment, then stating “ALL healthcare insurers rely on the premium payments of the healthy (primarily the young) to pay for the unhealthy (primarily the elderly)”, which is EXACTLY how insurance is supposed to work, by spreading the risk (i.e. Insurance 101).

IF your eliminate those at higher risk, then it is no longer insurance, but deliberately “cherry picking” to increase your profits.

THAT is what a “market solution” would do — increase profits at the expense of those who should be able to afford insurance if it was properly structured.

When THAT happens, it needlessly burdens the economic system, and passes on those costs to the public in the form of higher taxes, mainly so a few can manipulate the system for more profits.

The present “market system” is a scam designed to enrich the few at the expense of the many.

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By: Decatur http://blogs.reuters.com/great-debate/2013/07/01/student-loans-exploiting-americas-young/#comment-73673 Wed, 03 Jul 2013 00:56:16 +0000 http://blogs.reuters.com/great-debate/?p=21993#comment-73673 make that ‘promoting education to raise up…’ instead of the repeated word ‘competition’, above

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By: Decatur http://blogs.reuters.com/great-debate/2013/07/01/student-loans-exploiting-americas-young/#comment-73672 Wed, 03 Jul 2013 00:54:56 +0000 http://blogs.reuters.com/great-debate/?p=21993#comment-73672 The trends supported by the right are concerning for our future, as 300 million Americans hope to prepare our kids to be the ones rewarded when competing with a global middle class that will apporach 3 billion in their lifetime:

The rise of smaller private colleges as student loan mills.

The disincentives for higher education of any type unless you can ‘borrow from your parents’.

The false choices, like having to choose between better english, or science math and gifted programs (we need both, especially here in the southwest where better english would lift more kids up into life-long higher achievement).

The backwards anti-science bias and even rewriting of history (less Jefferson in Texas books) that politicians force onto schools, we’re not justanti-evolution and anti-climate science, we’re even anti-metric.

We had great success with two generations of easier access to higher education: the GI Bill and the middle class wages of the GI Bill adults that schooled the next generation. Now in the face of growing competition, we shoudl be vigorously promoting competition to raise up new inventors, engineers and entrepeneurs, not raising barriers to schooling.

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