Obamacare STUDENT LOAN STUPIDITY!!!

[Polk]

How is it a swipe at the working class to call for personal responsibility for the expenses of ones own wants and needs?

But you aren't calling for personal responsibility. You're calling for a return to the old system, which is the current system, plus a sack full of cash being handed to banks for no real reason.

 

[Polk]

i found this on student loans from a few years ago...

President Bush made clear that funding programs for students in school such as the Pell Grant would take a higher priority than assisting students after they’ve completed their education. In the Office of Student Financial Assistance Budget, student loan consolidation has been earmarked for a cut from $ 34.7 billion to $ 25.3 billion, a loss of $ 9.4 billion. In addition, the 2006 Budget proposes three major changes to the student loan consolidation program:

First and most important, the 2006 budget proposes replacing the fixed rate benefits of student loan consolidation with a variable rate formula equal to current loan balances. This would mean that students, currently locking in rates of 2.875%, would end up with variable rate loans that could reach as high as 8.25%, a potential 300% increase in rates.

Second, the budget proposes allowing students to reconsolidate their student loans at a fee of 1% of their loan balance. For graduate and medical students, who often have loan balances of $ 100,000 or more, this could translate to reconsolidation fees of thousands of dollars; currently, students pay no fee for any kind of student loan consolidation.

Third, the budget proposes doubling the fees that lenders are charged, from 0.5% to 1.0%. As lenders will need to absorb a doubling of their loan origination costs, benefits such as interest rate discounts offered to graduates may decrease or be eliminated. Additionally, because of the $ 9.4 billion proposed cut, lenders will need to search for ways to recoup the loss of federal funds, either by making consolidation requirements more stringent (i.e. requiring higher loan balances) or reducing benefits.

read the rest here: Drastic Student Loan Consolidation Changes in Proposed 2006 Federal Budget | Student Loans Easy

this could be the 1% that is added that gh spoke about?

There were three drastic changes to student loans:
(1) Under the Republican Congress that Clinton signed into making student loans nondischargable. Which created the largest increases in college tuitions in US history. Colleges could skyrocket tuition and lenders would write the loans with no fear of BK discharge.
(2) Under Bush, which made private student loans nondischargable also.
(3) Under Obamacare, which Federalize all student loans, including consolidation!

The loans you are claiming were "federalized" by Obama have always been "federalized". The difference is that the money now goes directly to lending, instead of taking that same amount of cash and giving to banks to lend, then handing them extra cash for a management fee.

 

[GHook93]

Let's be honest, a great many things have become increasingly, ridiculously expensive over the past few decades, in comparison to what they used to be. What's your cable bill now compared to 15 years ago? What's gas now compared to 15 years ago? What's a doctor's bill now compared to 15 years ago? What's a cell phone bill now compared to 15 years ago? All of these things are three to four times as expensive now, and have increased well ahead of the rate of inflation. Hey, what's a CEO's salary now, compared to 15 years ago? What's yours?

Cable bill has increase in accordance inflation. Gas increase is because its an extremely important commodity and the liberal environazis refuse to allow us to drill at home. With the oil scales in CO, off our coasts, deep sea and in ANWR we could be an oil exporting country. The first cell phones cost $5 a mins!

However, none have increase passed inflation levels as education has done! NONE!

 

[GHook93]

Yes, it was. How quickly they forget, huh?

I asked the same thing a while back when all my private student loan consolidation customer were going out of business. Education Direct, Next Student etc. These guys spent over $100K annually with me. They were gone nearly over night. I said "when was this bill passed?" The answer, "It was part of Obamacare." My reply,"What the hell does student loans have to do with healthcare!"

It wasn't part of the health care bill. It was part of the reconciliation amendments to the health care bill.

Hence the backdoor of the healthcare bill!

 

[GHook93]

i found this on student loans from a few years ago...



read the rest here: Drastic Student Loan Consolidation Changes in Proposed 2006 Federal Budget | Student Loans Easy

this could be the 1% that is added that gh spoke about?

There were three drastic changes to student loans:
(1) Under the Republican Congress that Clinton signed into making student loans nondischargable. Which created the largest increases in college tuitions in US history. Colleges could skyrocket tuition and lenders would write the loans with no fear of BK discharge.
(2) Under Bush, which made private student loans nondischargable also.
(3) Under Obamacare, which Federalize all student loans, including consolidation!

The loans you are claiming were "federalized" by Obama have always been "federalized". The difference is that the money now goes directly to lending, instead of taking that same amount of cash and giving to banks to lend, then handing them extra cash for a management fee.

How is it a swipe at the working class to call for personal responsibility for the expenses of ones own wants and needs?

But you aren't calling for personal responsibility. You're calling for a return to the old system, which is the current system, plus a sack full of cash being handed to banks for no real reason.

Can we at least agree on both systems sucked; however, like it or not the federal (and State) government MUST have a role in education, which needs also includes higher education.

 

[gekaap]

Cable bill has increase in accordance inflation.

Hardly. A cable bill that used to cost $40 a month now costs $100 a month.

Gas increase is because its an extremely important commodity and the liberal environazis refuse to allow us to drill at home.

That doesn't explain the increases in prices beyond inflation, if the circumstances are remaining the same.

The first cell phones cost $5 a mins!

And the first PS3 cost $600. But nobody said anything about the first cell phones. When I bought my first cell phone I paid $100 for the phone, and $25 a month for the monthly service. Prices are now three times that.

However, none have increase passed inflation levels as education has done! NONE!

Actually, they have.

 

[Zoom-boing]

It's a handout like social security is a handout. So yeah republicans hate them. I actually think the law helps alot and gets rid of an unnecessary middle man. Saves people the hassle and money.

How do you figure that social security is a handout? People pay into social security their whole lives; they don't pay into some kind of 'student loan fund'. Where does the government get the money to loan in the first place? And it gets paid back with interest so how is it a handout?

As for the middle man, the majority of money that is being saved by eliminating the middle man has been put into Pell Grants. Grants are monies that are not returned like a loan. It's money that is given away -- a true handout.

They eliminated the middle man to save lots of money just to turn around and give the majority of the savings away.

Unfortunately, SS is an entitlement. It's not like the tax we pay is saved and invested in an account for us. The money is spent on current beneficiaries...and when (if) we collect benefits, they will be funded by taxes on workers at that time.

It's also important to note that benefits are not guaranteed. Congress can change them at any time.

We'd be better of with a Chilean type of system in which individuals own their accounts, having the ability to pass them to heirs after death - and with the added benefit of not being available for raiding by politicians to spend on other programs.

Yeah, I wasn't clear in my first sentence was I? This "Where does the government get the money to loan in the first place? And it gets paid back with interest so how is it a handout?" was referring to student loans, not SS.

I know the SS money put in isn't saved/invested in accounts, that's it's spent on folks now and it is an entitlement . . . . but that isn't the same as a handout. A Pell Grant is a handout. A student doesn't contribute towards the grant but just receives the money (well the school receives the money) flat out and the student does not have to pay it back. Student loans are not a handout because they're paid back, with interest. There may be an interest break with student loans but again, that's not the same as a handout.

 

[Polk]

I asked the same thing a while back when all my private student loan consolidation customer were going out of business. Education Direct, Next Student etc. These guys spent over $100K annually with me. They were gone nearly over night. I said "when was this bill passed?" The answer, "It was part of Obamacare." My reply,"What the hell does student loans have to do with healthcare!"

It wasn't part of the health care bill. It was part of the reconciliation amendments to the health care bill.

Hence the backdoor of the healthcare bill!

If by backdoor, you mean something that was on the table for months, sure.

 

[Polk]

There were three drastic changes to student loans:
(1) Under the Republican Congress that Clinton signed into making student loans nondischargable. Which created the largest increases in college tuitions in US history. Colleges could skyrocket tuition and lenders would write the loans with no fear of BK discharge.
(2) Under Bush, which made private student loans nondischargable also.
(3) Under Obamacare, which Federalize all student loans, including consolidation!

The loans you are claiming were "federalized" by Obama have always been "federalized". The difference is that the money now goes directly to lending, instead of taking that same amount of cash and giving to banks to lend, then handing them extra cash for a management fee.

How is it a swipe at the working class to call for personal responsibility for the expenses of ones own wants and needs?

But you aren't calling for personal responsibility. You're calling for a return to the old system, which is the current system, plus a sack full of cash being handed to banks for no real reason.

Can we at least agree on both systems sucked; however, like it or not the federal (and State) government MUST have a role in education, which needs also includes higher education.

No, I don't agree that handing sacks of taxpayer money to banks for shits and giggles is the same as not doing it.

 

[GHook93]

you have to love youngsters (and I'm assuming your a youngster). Before the GOP farmed out student loans to the private sector increasing their cost to the students, you didn't have to go through any of this. The feds loaned you the money and you paid them back. Simple. No interest required, because your becoming an educated working tax payer is how the government earned it's interest.

I wish that was the case now, but it's not.

Right now we have lack of competition, so the rates are very high. From a private lender I got 2.47 on most of my loans. They are higher now for anyone taking out a student loan, regardless of historically low rates.

And you guest wrong on me being a youngster (my loans are post grad education). Back in undergrad I would have been on Mr. S, Ravi and the other clueless liberals side. Glad I grew up!

Ya' grew up, huh??

You still need help paying for your education....and, you consider yourself grown-up, huh?

Wow I missed your classless cheap shot. Law School cost over $100K (for new students now it costs over $125K) just for tuition only. I paid half myself and the other half in student loans. I have a family and 3 kids, so it was possible for me to pay for it entirely on my own. So take your self-righteousness and shove it up your ass!

 

[GHook93]

I will give credit to good Federal CollegeTuition Assistance Programs. Joining the military and serving your country and ROTC are pretty good federal programs. I wonder if that comes out of the defense budget? I think those are good programs. I also didn't think Obama's community service to get college tuition assistance was the worst either. Have kids doing things for the betterment of their country instead of just going to college and getting saddled with significant nondischargable debt doesn't seem like the best way. Especially whena college degree is nearly essential to success in America today.