Student Loans through the government now! Yahoo!

Discussion in 'Economy' started by Neubarth, Mar 30, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    We finally have student loans that can be acquired through the government as opposed to applying to banks. Obama will sign the bill soon. This is a positive if we are going to economically compete against the other nations of the world with our brainpower as opposed to our muscle.

    WASHINGTON (AP) -- President Barack Obama prepared Tuesday to sign the piece of his sweeping health care overhaul that makes the government the primary lender to students and strips banks of that power.

    Obama's hard-fought legislative victory packaged two of his domestic priorities. Obama already signed the bulk of the health care legislation, but a final set of tweaks provided a route for the education package, the largest rewrite of federal college assistance programs in four decades.

    The legislation has a wide reach. About half of undergraduates receive federal student aid and about 8.5 million students are going to college with the help of Pell Grants.

    Under the measure, private banks would no longer get fees for acting as middlemen in federal student loans. The government would use the savings to boost Pell Grants and make it easier for some workers to repay their student loans. In addition, some borrowers could see lower interest rates and higher approval rates on student loans.

    Obama has touted the changes as a way to make college more affordable for students and their debt load more manageable after graduation. He used his weekend radio and Internet address to cite expected benefits for young people: more student lending, caps on those repayments and more money for minority colleges and universities.

    "This reform of the federal student loan programs will save taxpayers $68 billion over the next decade," Obama said in his weekly address. "And with this legislation, we're putting that money to use achieving a goal I set for America: By the end of this decade, we will once again have the highest proportion of college graduates in the world.

    http://www.usatoday.com/money/perfi/columnist/block/2010-03-30-yourmoney30_ST_N.htm
     
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  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    Like the Mafia, the banks were asking for a slice of pie, a piece of the action, something to wet their beak, viggorish, or what ever you want to call it. We did not need the banks in the middle of a program like that. Let them concentrate on home loans and business loans and stuff like that. Let the Government fund education. Next, we can shut down 99 percent of the public schools and fund private schools for far less money. If Private Enterprise was running the schools all across America, we would not have such a failing school mess like we have now. 97 percent of our Big City schools are failing to educate a majority of their students. That is the poorest result in the whole world.
     
  3. Truthmatters
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    Truthmatters BANNED

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    Thats what happens when you deregulate an industry
     
  4. editec
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    editec Mr. Forgot-it-All

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    It seems much harder for young people to get SCHOLARSHIPS and low interest loans to go to school than when I was a kid.

    And of course the cost of education has actually been the ONLY THING in our lives that has risen in price faster than HC costs.

    You guys did realize that, right?

    HC has far exceded the rate of inflation for decades and higher education's rate of cost increases exceeded even HC inflation.

    The next generation is screwed unless we figure out some way to help them.

    They come out of school burdened with enormous debts and are entering the worst job market I have ever seen.

    Thewse are the people we're going to be counting on to support us in our golden years, but if they're not making enough to help themselves, they're not going to be making enough to support us, either.

    There is an intergenerational social contract, and we aren't living up to our committment to the next generation folks.
     
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  5. Neubarth
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    Neubarth At the Ballpark July 30th

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    I have a daughter who has fifty thousand dollars worth of nursing school debt who just landed a nursing job up in Alaska. She went to a private school because the loans to go to state school simply were too hard to get through the banks. The private school had the loans lined up for the students. (The miracles of private enterprise!)

    Yes, I know all about rising education costs. It cost me only about $2000 to go through San Diego State University in the Seventies.
     
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  6. dilloduck
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    dilloduck Diamond Member

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    I don't remember signing any intergenerational social contract.
     
  7. Neubarth
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    Neubarth At the Ballpark July 30th

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    You and I totally agree on that. Banks need to be heavily regulated and restricted in what they can do. Allowing Goldman Sachs to manipulate the stock market the way they do is outrageous..
     
  8. Zoom-boing
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    Zoom-boing Gold Member

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    My daughter is a sophomore in private college. The tuition/room/board went up 5% last year and we just got a letter saying that it will continue to rise every year but they are doing their best to keep it under 4%. It went up 3.5% from last year. Stafford loans and Pell Grants increase each year but . . . what's the point? It's like the increase in loan/grant is there just to cover the increase in cost but nothing is being done about the rising costs. Personally I think college is a huge rip-off. Yeah, yeah education . . . . super. My kid's school requires over-priced meal plans, 'use it or lose it' flex dollars (that's on top of the price of the meal plan) and the pricing of things! Cripes they charge $24 for a case of water, 'fees' out the whazoo, etc.
     
  9. editec
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    editec Mr. Forgot-it-All

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    Well at least her education is still in a field where she can find a job.

    A huge percentage of people were trained in fields where jobs are damned scarce.

    I went to Boston University in the late 70s.

    No way in hell I could afford to do that today.

    Tuition and Fees. $38,440. Room and Board. $11,848.

    I mean, seriously $50,000 a year?!

    How many people's families can afford that kind of expense?

    I think BU tuition cost me about $8,000 a year back then.

    And just about any full time job mind numbing retail job paid 12 or 15 thousand back then.

    Our kids, generally speaking, are screwed, folks.
     
  10. Neubarth
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    Neubarth At the Ballpark July 30th

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    Pell grants are still free money. Since my wife and I raised thirty children, we qualified for Pell Grants for the older ones, and the youngest ones since I retired. That is a good deal.

    Funny, I found out that with all of those kids in my home I qualified for Food Stamps. I was making very good money as a manager for Pacific Bell Telephone, but to think that I was eligible is funny. I should have taken advantage of my right. After all, I have been paying taxes for most of my life. (Mostly sales taxes in the past 20 years)
     

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