Student Loans Going through Gov't Too in 2014

[jjgold]

By 2014 we will be very deep into Socialism but most here do not care because they liked their lives to be controlled. They are not Tops like me. If Republicans do not get back in office in 2012 this free Country is done. 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." The plan caps student loan repayment at 10 percent of a graduate's income when the law takes effect in 2014.

[ClipCan]

I have about 25k out in student loans, that being said, I assure you not 1 penny of that went to gambling. I swear.

[soli]

Actually this is a good move by the Government. Makes sense to me to take out the Sorry Azz Banks and get more for your money.

[topgame85]

Actually this is a good move by the Government. Makes sense to me to take out the Sorry Azz Banks and get more for your money.

Banks will just make cuts in savings % and raise fees to make up for the lost revenue so it is really pointless and just gives the government more control. How anybody could agree with this is beyond me.

[THE PROFIT]

By 2014 we will be very deep into Socialism but most here do not care because they liked their lives to be controlled. They are not Tops like me. If Republicans do not get back in office in 2012 this free Country is done. 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." The plan caps student loan repayment at 10 percent of a graduate's income when the law takes effect in 2014.

JJ, this is a very good policy. Why the fuk are you touting it as the end of the world as we know it?

Please quit TRYING to talk politics & economics & stick to what you know, whatever that is!!!

[FreeFall]

I'd get student loans if they'd give them to me and invest them. Sadly my parents are a bit too successful.

[MartinBlank]

JJ knows as much about lending and interest rates and why this is a good thing as he does about sports gambling.

[MartinBlank]

I'd get student loans if they'd give them to me and invest them. Sadly my parents are a bit too successful.

Go to graduate school then.

Student loan programs/Financial Aid for graduate students do not use the same formulas in the FAF for determination of need.

However. The only cash you will see is what is left over after tuition is paid in full. You will receive whatever your school determines to be a reasonable cost of living amount.

[topgame85]

There is no upside here, liberals never cease to amaze me, just blindly follow your politicians. Why people think the US government is capable of handling such a program is beyond me. This will not save money it will cost money and set up more stupid departments run by idiots in safe government jobs who are not held accountable for jack shit.

[TheAccountant]

This is not a good policy. Taking privatized processes and making them public processes only saves money in theory. Very few governmental processes are efficient, and even if the proposed plan begins working effectively, it will be bogged down by later legislation and political change.

Allowing the banks to administer Pell Grants provided a commercial incentive for banks to locate and faciliate student loans. This also opened a door for students who need more tuition assistance than the Pell Grant provides to borrow money for their entire tuition through one shop. Banks competed for these loans, driving interest rates down.

This plan kills that competition, and why interest rates may be low for students, this is an artificially low interest rate which eventually must be paid for somewhere. If typical of most government bills, Obama will look good by deflating student loan costs and increasing acceptance, but these artificial rates will be funded by a decrease in other committments to non-profit institutions.

[TheAccountant]

There is no upside here, liberals never cease to amaze me, just blindly follow your politicians. Why people think the US government is capable of handling such a program is beyond me. This will not save money it will cost money and set up more stupid departments run by idiots in safe government jobs who are not held accountable for jack shit.

^^

To put it bluntly, this.

[MartinBlank]

This is not a good policy. Taking privatized processes and making them public processes only saves money in theory. Very few governmental processes are efficient, and even if the proposed plan begins working effectively, it will be bogged down by later legislation and political change.

Allowing the banks to administer Pell Grants provided a commercial incentive for banks to locate and faciliate student loans. This also opened a door for students who need more tuition assistance than the Pell Grant provides to borrow money for their entire tuition through one shop. Banks competed for these loans, driving interest rates down.

This plan kills that competition, and why interest rates may be low for students, this is an artificially low interest rate which eventually must be paid for somewhere. If typical of most government bills, Obama will look good by deflating student loan costs and increasing acceptance, but these artificial rates will be funded by a decrease in other committments to non-profit institutions.

A few things.

There is no evidence that "Banks drove interest rates down". That never happened. In fact, from 2000-2008, student loan interest rates remained relatively flat despite the drop in the Fed rate.

The only benefiicary from any student loan program should be the student. And that is who will benefit the most under Obama's plan. And all this conjecture about this plan having a secondary costs to the public at large are ridiculous.

Only the GOP could manage to bitch about a plan that reduces money to banks.

[topgame85]

A few things.

There is no evidence that "Banks drove interest rates down". That never happened. In fact, from 2000-2008, student loan interest rates remained relatively flat despite the drop in the Fed rate.

The only benefiicary from any student loan program should be the student. And that is who will benefit the most under Obama's plan. And all this conjecture about this plan having a secondary costs to the public at large are ridiculous.

Only the GOP could manage to bitch about a plan that reduces money to banks.

, name one thing that big government has done efficently or cost effectively.... neo-con or liberal......... doubt you will find one and double doubt you will find a liberal program which has done so

[MartinBlank]

, name one thing that big government has done efficently or cost effectively.... neo-con or liberal......... doubt you will find one and double doubt you will find a liberal program which has done so

Hmmm. I can tell you this.

While the media will never report it, and they will cling to an outdated model of care---the VA Hospital System is run more efficient than most community hospitals.

The VA system does more with less than any other health care model in this country. They are unable to attract high end physician talent, but their appointment and primary care services are very good.

Does this count, or were you looking for something else?

I can also say that the police and fire departments at the state level----which is still big government----are run more efficiently than those community firehouses.

[TheAccountant]

A few things.

There is no evidence that "Banks drove interest rates down". That never happened. In fact, from 2000-2008, student loan interest rates remained relatively flat despite the drop in the Fed rate.

The only benefiicary from any student loan program should be the student. And that is who will benefit the most under Obama's plan. And all this conjecture about this plan having a secondary costs to the public at large are ridiculous.

Only the GOP could manage to bitch about a plan that reduces money to banks.

A little further research reveals that the banks will still be incentivized to administer student loans through some type of performance bonus plan, so the current bill does realize the need to incorporate private banks into this process. This is a good thing - and the Pell grant overhaul does look good on face value - what happens realistically remains to be seen.

The only point I strongly disagree with is the idea that competition between private banks does not drive interest rates down. There is a group of people that believe one central state bank eliminates cost and would provide more benefit to the public than a bunch of smaller private capitalist banks. These people are called socialists.

[jjgold]

Some of you guys do not get it, Gov't wants to control everything in your life, this is just the beginning. I know many of you support Socialism so I can see why you support Obama. This is real bad.

[MartinBlank]

, name one thing that big government has done efficently or cost effectively.... neo-con or liberal......... doubt you will find one and double doubt you will find a liberal program which has done so

Also. Let me play this game with you.

What part of the banking industry gives you confidence that they won't continue to fuk up the student loan program like they are doing currently?

This is the same industry where their top end CEOs are GOP to the bone---yet the moment their morononic credit defaults failed---they started begging the US Gov't for money to save themselves.

And you trust this industry to govern and self-regulate the student loan industry?

[MartinBlank]

A little further research reveals that the banks will still be incentivized to administer student loans through some type of performance bonus plan, so the current bill does realize the need to incorporate private banks into this process. This is a good thing - and the Pell grant overhaul does look good on face value - what happens realistically remains to be seen.

The only point I strongly disagree with is the idea that competition between private banks does not drive interest rates down. There is a group of people that believe one central state bank eliminates cost and would provide more benefit to the public than a bunch of smaller private capitalist banks. These people are called socialists.

Again, we have had "competition" as you say----among banks for student loans and interest rates for student loans have climbed while the fed rate dropped.

In 2001-02 the student loan interest rate was 5.99%, in 2008-09 it was 7.22%.

Name me another industry were "competition" had so little an effect?

[MartinBlank]

Some of you guys do not get it, Gov't wants to control everything in your life, this is just the beginning. I know many of you support Socialism so I can see why you support Obama. This is real bad.

JJ---take a deep breath and answer me this question.

Explain the dangers of supplying basic health care to a family of four who lost their jobs in this shitty economy?

Also, tell me how reducing the cost of a student loan to an 18 year old is going to cause us to become the Soviet Union?

[statnerds]

I wonder how many Americans just lost their jobs as "middlemen"...

Martin - Did you miss the part where 1. the government will own the student's loan, thus own the student, and 2. Student can knock 10 years off loan by performing "community service"? Both options sound like the government owning the individual. If you don't think that will lead to the government "suggesting" which fields grads go into I fear you are dangerously naive.

What did Hitler try to take control of? Health-care, banking and education. that turned out well.

Smallest minority on the face of the planet is the individual.

[topgame85]

When money is involved WHO CAN you trust? The answer is no one. The problem is that the expansion of goverment has become out of control, if you are a socialist that is fine just say that. Repubs and dems alike have been destroying this country for decades by expanding government so its not a red/blue issue yet everyone tries to make it one. I will not agree with your socialist points but I will appreciate that you see what you are and leave the point alone. The FEDERAL government has WELL over stepped its constitutional bounds time and time again and destroyed services and projects for almost its entire existence. If your a big government supporter you will never concede the point so why argue? God willing we will both be here in 5 years and we can see how this turns out. Somebody will have the pleasure of an I told you so. I do however feel that to say you can trust the government MORE than private industry is very naive. They both lie, steal, cheat, make things disappear, and end up in corruption cases at an alarming rate. At least any one with a brain knows private industry is about making $ and they will maximize profit and take gambles so they know what they are dealing with, DC has so many private agendas, secret meetings, backroom deals, coverups that are not brought to light so on and so forth yet they smile in your face and tell you just listen to us its for your own good and you never know what they are up to. Give me the guy who I know is offering me a service with the hopes of maximizing his profits over the grimy politician who serves a few terms and leaves a mess behind for the next guy while collecting his pension from a house in the hamptons.

[jjgold]

What free health care does it make unemployment sky rocket, there is no incentive to work and just let the working man support the lazy poor mother fukkers that drink, do drugs, make fukkin babies all day. All the lazy people support Obama and people that want everything for free. Health care is not a fukkin right, it is a fukkin privledge. The gov't wants to control everything you do and be reliant upon them. It is called Socialism. The basic principle is break down the people so they need the gov't.

[THE PROFIT]

Some of you guys do not get it, Gov't wants to control everything in your life, this is just the beginning. I know many of you support Socialism so I can see why you support Obama. This is real bad.

You don't have a life so WTF are you afraid of them controlling?

[THE PROFIT]

It's the same shit everytime there's a party change in congress or executive. Stop the fukin fear tactics. Nothing is the end of the world as we know it. We are not slipping into socialism, the military is not gonna knock on your door & confiscate your guns, They are not putting your grandma in a death camp.

If you fuks would spend a little more time worrying about picking a winner and less about every conspiracy you hear on FOX news you'd be better off!

I guarantee 70% of you dont have health insurance but bitch about the health care plan because you think it sounds good to bitch, when in actuality you know 0 facts about it.

[statnerds]

well libs spent decades dumbing down out schools and citizens and it has come to this. Stupid Americans are going to get played on this and obama is the puppet master. cliff note version of health care.

force health care insurance companies to cover pre-existing and high risk people.

insurance companies raise rates to cover the added risk to the risk pool.

obama and libs demonize insurance companies.

government takes over insurance companies.

or you could just believe barry's own words:



are you guys this clueless?

[flyingillini]

JJ, I just paid off my student loans. Should I of waited? A total of 119k.

[topgame85]

Your right TP I don't have healthcare and rather fcking die from lack of it than to have the government tell me what I do and don't need. I have no need for health insurance, they didn't have it for centuries and they got along just fine. If someone wants it fine let them have it if they don't want it mind your own buisiness. It won't be the end of the world, it will however be the end of a great nation if this shit continues to expand.

[THE PROFIT]

Your right TP I don't have healthcare and rather fcking die from lack of it than to have the government tell me what I do and don't need. I have no need for health insurance, they didn't have it for centuries and they got along just fine. If someone wants it fine let them have it if they don't want it mind your own buisiness. It won't be the end of the world, it will however be the end of a great nation if this shit continues to expand.

when you get cancer I dont wanna hear you bitchin. Lay there & die like a good capitalist

[topgame85]

Haha trust me I would or come up with the $ to get treatment, not gonna be like all you crying snivly bleeding hearters who want to pay for other peoples problems with MY and the rest of your fellow citizens $$$$. Donate to a nonprofit if you want to pay for that shit don't make everyone pay for your cause you liberal POS.

[EmpireMaker]

Some of you guys do not get it, Gov't wants to control everything in your life, this is just the beginning. I know many of you support Socialism so I can see why you support Obama. This is real bad.

The Bush administration stripped this country of more civil rights than any in recent history by a long shot !!!!

[topgame85]

when you get cancer I dont wanna hear you bitchin. Lay there & die like a good capitalist

Or maybe you just can't afford to pay for it and want us to pay for YOUR health insurance either way I plan on being around long after you because the strong survive not weak liberal trash

[MartinBlank]

What free health care does it make unemployment sky rocket, there is no incentive to work and just let the working man support the lazy poor mother fukkers that drink, do drugs, make fukkin babies all day. All the lazy people support Obama and people that want everything for free. Health care is not a fukkin right, it is a fukkin privledge. The gov't wants to control everything you do and be reliant upon them. It is called Socialism. The basic principle is break down the people so they need the gov't.

JJ---I always knew you know shit about sports, but I was surprised to learn you know absolutely nothing about bascially anything.

And that includes the weather when it is sitting on your face. Remember your post about the storm missing Newark? 12 hours before the storm was supposed to hit?

These "ideas" of yours are on that same f'in path.

Health care isn't a right? Says who? Says you? What f'in objection do you have to making the insurance industry cover kids with diabetes? or MS? or a nasty cancer like osteosarcoma?

The moment a country allows the health insurance industry to establish a policy that allowed them to drop coverage of children with cancer---we lost our souls...

JJ----don't you live off of handouts?

Odd coincidence isnt it?

[ronald]

Would like to hear Mathy's thoughts on this thread.

[topgame85]

JJ---I always knew you know shit about sports, but I was surprised to learn you know absolutely nothing about bascially anything.

And that includes the weather when it is sitting on your face. Remember your post about the storm missing Newark? 12 hours before the storm was supposed to hit?

These "ideas" of yours are on that same f'in path.

Health care isn't a right? Says who? Says you? What f'in objection do you have to making the insurance industry cover kids with diabetes? or MS? or a nasty cancer like osteosarcoma?

The moment a country allows the health insurance industry to establish a policy that allowed them to drop coverage of children with cancer---we lost our souls...

JJ----don't you live off of handouts?

Odd coincidence isnt it?

they may have lost theirs but we did not lose ours why do liberals try to make everyone else feel guilty about the worlds woes. We live on a fcked up sphere speeding around the sun that will end one day unfortunately probably not until we are long gone anyways. Funny the liberals who like to kill babies via abortion are also the ones whom bring up the children with cancer argument to try to guilt everyone into thinking like them.... lets get real

[topgame85]

Abortion clinic doctors aren't murderers and people who commit murder should be "rehabilitated" and at worst get life and never be given the death penalty but insurance companies should burn to the ground for refusing coverage to a kid who gets cancer? its all or nothing, you can't villanize one side of moral defeciency and allow and support others