Ron Paul: End Federal Student Loans

Discussion in 'Education' started by GHook93, Nov 2, 2011.

  1. GHook93
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    GHook93 Aristotle

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    Note: He is not talking about ending private student loans. Does he have a point? I think he does since two federal moves happen in the late 90s (Clinton years) college tuition has skyrocketed! College used to be expensive but affordable. Now its astromically expensive and unaffordable!

    Two Clinton Error root causes of this:
    (1) The Federally back student loan program: This allowed banks to give student loans without a cosigner, without a credit check, without any requirement, other than you go to school. The banks handed these out like candy and the colleges jacked up tuition prices like no product has even done in history!

    Note: Obaminationcare now made the loans come directly from the government, so student loan increase the deficit!

    (2) Clinton and Gingrich making Student Loan Non-dischargable (Then GWB making private one's non-dischargable): This was the even bigger catayst. Even a philosophy major hoping to make $20K a year could get saddled with $70K in loans. They were all treated the same.


    College tuition and student loans are a bubble that is bursting and its an issue where status quo is unacceptable!

    I know what the Ron Paul haters will say about this, but listen to what he is say, he makes a TON of sense here!


     
  2. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Anybody who is ambitious enough will get to go to college.....Ron Paul

    Typical rightwing blame the victim if you can't afford $40,000 tuition without a loan
     
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  3. Spin_Doctor
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    Spin_Doctor Rookie

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    Student loans are the REASON its $40,000 in tuition. And with the government picking up the tab now that Obama's executive order has passed they are likely to become even higher. Why would ANY school ever lower their tuition now? Even before that why would a school ever lower its tuition? (Hint: Its the same reason why Congress never lowers its own benefits and saleries)
    BECAUSE THEY DON'T HAVE TO!
    If you think they will lower their tuition to help students get to college for even a moment you are blind. Colleges have little vested interest in the success of failure of their students (If you don't believe me go to ANY major campus, take a look at what they are building, Football Stadiums, Student Unions, Dorms, Recreational Centers, maybe a few new buildings that actually have something to do with education. All of these are very nice but don't change your success or failure in the job market much. They are however great at growing a schools numbers and reputation.)
    They are only interested in the success or failure of THEIR reputation.
     
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  4. Middleoftheroad
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    Middleoftheroad Active Member

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    This doesn't really make sense, because most colleges are non or not-for-profit, this includes most private colleges. They charge tuition to cover their costs, taking away peoples ability to get federal loans can only have one effect, decreasing the enrollment at colleges, then those same colleges will have real problems balancing their budget.
     
  5. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Other than charging higher interest.

    How will private loans solve that?
     
  6. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    My Dad managed to get into USC (Class of 1965) even though he didn't have the grades to get accepted at first.

    Interestingly, he spent the same amount for his Doctorate as I did for my Bachelors. Roughly $16,000.

    You deny that the cost of education has gone up since the Fed took over student loans? As Dr. Paul said, competition will drive down the cost of education. Just as it drives down the cost and increases the quality of everything else.
     
  7. Big Black Dog
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    Big Black Dog Gold Member Supporting Member

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    I don't agree with a lot of what Ron Paul has to say but I agree with him on this. The Federal Government is not a bank. They should not be in the student loan business.
     
  8. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    I spent under $10,000 for a BS in Engineering total. Tuition, room, board, books

    Just how will Dr Paul's competition work? I imagine the first thing you do is deny an education to the working poor. Use them as pawns to try to reduce student populations. Of course schools will respond by replacing them with foreign students.
     
  9. whitehall
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    whitehall Gold Member

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    Every American boy who grew up in the 20th century acknowleged the fact that he would have to serve in the US Military for a couple of years. Elvis was even drafted. We didn't get an elistment bonus but we got the GI Bill and we took advantage of it. Today's kids whine about a big student loan but they wouldn't give up two years to serve in the Military.
     
  10. Spin_Doctor
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    Non-profit only means that instead of turning over profits to stockholders or investors they use the same money to pay themselves or increase their facilities. If you don't believe that look at what college presidents and other higher ups make (Football coaches are a different argument, but still they make absurd amounts of money for a non-profit).
    Lets look at this from an economic standpoint. We'll approach is a few different ways.
    1) Higher education is in high demand (High school diplomas are less useful than toilet paper and to get a decent job you "NEED" a degree even if you never use it) and supply is limited (only so many students). This would mean High prices because more people want something than they can get. So if you makes loans readily available to everyone who wants them, then you aren't changing the supply or the demand, but just increasing what each person can pay. So in a limited supply case then it just gives colleges more money.
    2) So lets expand on the above. Lets say that colleges use that extra money they get to build dorms and classrooms and all those other wonderful things that they are building that increase the number of people that they can accommodate. This would increase the supply, which should drive down the price. But this also increases the costs (buildings need to be maintained, teachers and administrators need to be hired, ect). Now the question about how effective this is depends on how much these costs go up against the extra money they are receiving. The only way here that they actually lower the price is if they become more efficient at spending the money, and if they become less efficient, then the costs per student go up (and like government, schools are not efficient typically).
     

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