Obama buying students and increasing debt?

Discussion in 'Current Events' started by Yurt, May 8, 2009.

  1. Yurt
    Offline

    Yurt Gold Member

    Joined:
    Jun 15, 2004
    Messages:
    25,583
    Thanks Received:
    3,554
    Trophy Points:
    270
    Location:
    Hot air ballon
    Ratings:
    +5,038
    got this in an email.....

    The government budget outline proposes offering federal student loans solely through the federal government's Direct Lending Program starting July of next year. While this proposal will not impact a borrower's ability to obtain a federal student loan, it will eliminate your ability to choose a student loan provider. It will also substantially increase the national debt since each and every federally-insured student loan will be funded by the Federal Treasury through the issuance of treasury securities. This proposal impacts you as a citizen - both as a taxpayer and as a borrower.
     
  2. justabubba
    Offline

    justabubba Member

    Joined:
    Aug 14, 2008
    Messages:
    156
    Thanks Received:
    28
    Trophy Points:
    16
    Ratings:
    +28
    just as small business/sba government guaranteed loans are off between 50 and 70%, depending on the program, because lenders are now reluctant to make loans. even with a federal guaranty. lenders are similarly unwilling to make the volume of student (government guaranteed) loans which were previously available to our nation's youth, before the financial meltdown

    if we want our kids to be able to attend school, funding is going to be necessary
    seems like a good use of federal dollars ... especially when compared to the trillion dollar bush regime transfer of money from the US taxpayer to replace the losses of the wealthy. those who gambled their own money away on derivatives, over-rated securitized mortgages, and oil futures
     
    • Thank You! Thank You! x 1
  3. Barb
    Offline

    Barb Carpe Scrotum

    Joined:
    Apr 2, 2009
    Messages:
    5,717
    Thanks Received:
    1,568
    Trophy Points:
    153
    Location:
    in a house.
    Ratings:
    +1,586
    As they were, the loans were already guaranteed by the fed, under the new system, the loans are made by the fed with no kickback to lenders from the fed as it has been in the past, it. The taxpayer gains in this, as it cuts out an unnecessary middleman.
     
  4. Zoom-boing
    Offline

    Zoom-boing Gold Member

    Joined:
    Oct 30, 2008
    Messages:
    25,071
    Thanks Received:
    7,261
    Trophy Points:
    260
    Location:
    East Japip
    Ratings:
    +10,130
    I thought I read that there maybe an additional string to these loans in the form of some kind of service to the country after graduation. Does anyone know anything about this?
     
  5. justabubba
    Offline

    justabubba Member

    Joined:
    Aug 14, 2008
    Messages:
    156
    Thanks Received:
    28
    Trophy Points:
    16
    Ratings:
    +28
    by agreeing to perform defined forms of public service the graduate can eliminate student debt year-for-year
     
  6. MaggieMae
    Offline

    MaggieMae Reality bits

    Joined:
    Apr 3, 2009
    Messages:
    24,043
    Thanks Received:
    1,599
    Trophy Points:
    48
    Ratings:
    +1,601
    You're thinking of the Community Volunteer Service, which awards grants for higher education based on volunteer work.

    Learn and Serve America > Students

    There's no strings for federal student loans that I'm aware of other than interest.
     
  7. MaggieMae
    Offline

    MaggieMae Reality bits

    Joined:
    Apr 3, 2009
    Messages:
    24,043
    Thanks Received:
    1,599
    Trophy Points:
    48
    Ratings:
    +1,601
    But ONLY if it's a federal student loan, not a private loan.
     
  8. Zoom-boing
    Offline

    Zoom-boing Gold Member

    Joined:
    Oct 30, 2008
    Messages:
    25,071
    Thanks Received:
    7,261
    Trophy Points:
    260
    Location:
    East Japip
    Ratings:
    +10,130
    Probably that's what I"m thinking of but I thought I read something else about college loans if they cut out the banks . . . I don't know. I'm concerned about this especially if it's a subsidized loan (gov. pays interest) and they put a community service string on it. This is just another power grab to grow the government, imo.
     

Share This Page