Ron Paul: End Federal Student Loans

[GHook93]

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!

Ron Paul defends eventual end to federal student loans – CNN Political Ticker - CNN.com Blogs

Republican presidential candidate Ron Paul said Sunday his proposed plan to phase out federal student loans would lower the costs of a college education, making it more affordable for those wanting to attend.

“Anybody who’s ambitious enough will get to go to college,” Paul said on CNN’s “State of the Union.”


The Texas congressman, who is making his third presidential bid, said federally funded education assistance raises the price of education while not improving the caliber, a cycle that will “backfire.”

Paul’s plan would eliminate the Department of Education but keep the features that handle student loans for the time being, ensuring there are no cuts to those currently receiving assistance or who will in the near future.

In a USA Today editorial Friday, Paul said eventually transitioning away from government-backed student aid would “give us better educational opportunities at a better price.”

“Why should people who are laborers who never get to go to college, why should they be taxed to send some of us through college?” Paul said Sunday on CNN. “So it’s not even a fair system when it works. But obviously it doesn’t work and that’s why it’s coming to an end.”

Paul has long advocated for cuts in spending and the national debt while calling for numerous government agencies to shut their doors and a renewed emphasis on individual responsibility. His responsibility platform also extends to education, he said.

“The responsibility is on the individual and the family to take care of their needs, not the federal bureaucracy. It just doesn’t work,” Paul said.

When asked if he would agree that some people in the United States “need federal help,” Paul told CNN Chief Political Correspondent Candy Crowley that there are “always some needs, the market isn’t perfect.”

“It will not be perfect, but what we have now is this catastrophic

 

[rightwinger]

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

 

[Spin_Doctor]

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.

 

[Middleoftheroad]

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.

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.

 

[rightwinger]

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.

Other than charging higher interest.

How will private loans solve that?

 

[Mad Scientist]

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

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.

 

[Big Black Dog]

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.

 

[rightwinger]

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

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.

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.

 

[whitehall]

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.

 

[Spin_Doctor]

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).

 

[rdean]

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

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.

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.

Foreign students who will go home as soon as they graduate. Right wingers are driving immigrants away. They seem to hate "different".

 

[Shogun]

It's things like that that will always keep Ron Paul out of the Presidency.

 

[Spin_Doctor]

Ron Paul is rather solid in that he is pretty much the same across the board. While none of the republicans are good choices, any are better than our socialist president, and Ron Paul is the best choice for most things that end up being measured in dollars. Education is a 'good' just like everything else. ANYTHING that the government guarantees becomes noncompetitive and losses efficiency. In the world economy we live in today, you MUST compete or you will be left behind.

 

[Harry Dresden]

Foreign students who will go home as soon as they graduate. Right wingers are driving immigrants away. They seem to hate "different".

you hate different too Dean.....don't act like you don't.......you have too many posts that give you away....

 

[rdean]

Foreign students who will go home as soon as they graduate. Right wingers are driving immigrants away. They seem to hate "different".

you hate different too Dean.....don't act like you don't.......you have too many posts that give you away....

I don't hate anyone. Pointing out the Confederate Republican Party is 90% white and based in the deep south isn't hate. It's a "fact".

 

[Harry Dresden]

Foreign students who will go home as soon as they graduate. Right wingers are driving immigrants away. They seem to hate "different".

you hate different too Dean.....don't act like you don't.......you have too many posts that give you away....

I don't hate anyone. Pointing out the Confederate Republican Party is 90% white and based in the deep south isn't hate. It's a "fact".

no you dont hate anyone Dean.....you talk about Republicans with such loving kindness.....your Bullshit is starting to smell even as far away from you as i am.....

 

[rightwinger]

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.

I agree

We need alternative ways to fund higher education. I support the GI bill as well as expanding to those students who give up time for community service.

The private sector needs to stand up also. They are the ones who benefit from college graduates the most. We need more internship programs, more industry sponsored scholarships, company sponsored students, student debt payment programs

 

[jacklineava]

Without loan you can't study further if you have no money. You can go for private student loan. In this loan, you don't need to worry about your bad credit history.

 

[Sunni Man]

Foreign students who will go home as soon as they graduate. Right wingers are driving immigrants away.

So what's wrong with that rdean?

They are foreign students. Not immigrants.

Once they graduate they do need to return to their country.

Republicans have nothing to do with it.

 

[editec]

Of course if there were NO student loans colleges probably wouldn't cost as much.

The other outcome of that scenario would be that most people wouldn't be able to get a higher education.

Metaphorically speaking that puts our society on the horns of a dilemmia, doesn't it?

We need a highly educated workforce but we do not want to pay for it.