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Student Loan Justice

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djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
The federal student loan system has become predatory due to the Congressional removal of standard consumer protections and congressionally sanctioned collection powers that are stronger than those for all other loan instruments in our nation's history. The resulting lending system is causing great harm to citizens who borrow for college, but also causes harm to all students due to the unchecked inflation that is enabled by this problem. Other systemic problems have also arisen within the lending system as a result of the financial motivations of the various system elements being aligned against, instead of with the students. These include a high default rate, poor quality of education, poor loan administration, systemwide corruption, inexcusably bad oversight, governmental secrecy, and others.

http://studentloanjustice.org/argument.htm
 

Michael S

Senior Member
Joined
Mar 18, 2009
Professional Status
Certified General Appraiser
State
New Mexico
Don't borrow money for college. Especially not for some glorified trade school that will charge more than a state university for a worse education.

Colleges continue to raise costs as they know most of their customers (students) are financing their education and will go tens of thousands in debt. It's just like anything else, whether it's education, a car, or a house. Cash buyers are going to be a lot more careful and typically aren't willing to pay as much as those who are only looking at a payment since they're borrowing most of it.

I graduated about 8 years ago and just paid off my last student loan. My wife's last one will be paid off within the next few months. Combined we had about $20-25k in student loan debt which was below average. If I could do it again I would have worked during college and not borrowed that money. Most of it I used for speculating in the stock market since the National Guard and GI bill were covering my tuition plus much of my other living expenses. Had I just worked 20-30 hours a week I could have easily made up the difference I borrowed plus gained some experience to put on my resume.
 

djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
"Student debt: Bernie Sanders ranted about it, other politicians talk about it, and a new study by the Institute for College Access and Success (TICAS) confirms that newly minted college graduates in the class of 2015 left school with a record high average student loan burden of $30,100.

Currently, student loan debt in the United States totals nearly $1.4 trillion. For the seven-in-ten students who must borrow to go to school, debt payments can mean anything from more roommates to indefinitely postponing life decisions such as starting a family or buying a home."

https://www.yahoo.com/news/average-student-loan-debt-increases-again-211757468.html

Only 1,400,000,000,000 in debt.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Aug 3, 2015
One of the sureties of economics is that if you subsidize something you get more of it. Similarly, if you tax something, you get less of it. It’s almost always true that some subsidy to one group will spill over into being a subsidy to others that we’re not quite so sure that we’d like to subsidise.

A new study from the New York Federal Reserve found:

When students fund their education through loans, changes in student borrowing and tuition are
interlinked. Higher tuition costs raise loan demand, but loan supply also affects equilibrium
tuition costs—for example, by relaxing students’ funding constraints. To resolve this simultaneity
problem, we exploit detailed student-level financial data and changes in federal student aid
programs to identify the impact of increased student loan funding on tuition. We find that
institutions more exposed to changes in the subsidized federal loan program increased their
tuition disproportionately around these policy changes, with a sizable pass-through effect on
tuition of about 65 percent. We also find that Pell Grant aid and the unsubsidized federal loan
program have pass-through effects on tuition, although these are economically and statistically
not as strong. The subsidized loan effect on tuition is most pronounced for expensive, private
institutions that are somewhat, but not among the most, selective.
http://www.forbes.com/sites/timwors...se-the-price-of-college-tuition/#3fa260942b88

The Future Of An Illusion: The Higher-Ed 'Funding Cuts' Myth
May 11, 2015
Over the past quarter-century, average tuition prices have increased 440 percent—far more than the Consumer Price Index and even health-care costs over the same period. At roughly $1.2 trillion, student-loan debt stands above total national credit-card debt for the first time in history. The U.S. military budget is roughly 1.8 times larger than it was fifty years ago, during the same period, “legislative appropriations to higher education are more than ten times higher.” Tuition hyperinflation, rather than being a direct effect of “funding cuts,” instead “correlates closely with a huge increase in public subsidies for higher education.” To make this point more concrete, “if over the past three decades car prices had gone up as fast as tuition, the average new car would cost more than $80,000.”
http://www.forbes.com/sites/tomlind...the-higher-ed-funding-cuts-myth/#594f45471ea7

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Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
With the availability of on line classes, the University system has proven to be bloated and self-perpetuating. Coach and high administration costs are insane and sports rarely pays for itself.
 

Michael S

Senior Member
Joined
Mar 18, 2009
Professional Status
Certified General Appraiser
State
New Mexico
"Student debt: Bernie Sanders ranted about it, other politicians talk about it, and a new study by the Institute for College Access and Success (TICAS) confirms that newly minted college graduates in the class of 2015 left school with a record high average student loan burden of $30,100.

Currently, student loan debt in the United States totals nearly $1.4 trillion. For the seven-in-ten students who must borrow to go to school, debt payments can mean anything from more roommates to indefinitely postponing life decisions such as starting a family or buying a home."

https://www.yahoo.com/news/average-student-loan-debt-increases-again-211757468.html

Only 1,400,000,000,000 in debt.

This is the problem. Generations have been conditioned to believe that you must borrow money to pay for college. Now, working 20 hours a week at a minimum wage job will not allow you to pay tuition at a state school and still cover food, rent, etc. That doesn't mean that you can't work your way through college anymore it's just gotten a lot harder as the massive subsidies of education have driven the price up. Do your first two years at a community college, don't choose an expensive out-of-state school, try to earn scholarships, work your *** off before college, during summer breaks, and during college. There are employers out there who will pay for college as well, not just the military. It is possible to come out of college debt free but it's not easy. The benefits of not graduating with an anchor around your neck are immense though. You're not forced to take any job that comes along just to afford your loan payments, you're not going to spend 10 years paying off that debt before you can even think about buying a house, etc.
 

Artemis Fowl

Senior Member
Joined
Mar 16, 2004
Professional Status
Certified Residential Appraiser
State
Michigan
My Father gave me the best advice ever: Start a fund the day a kid is born.
My son will graduate with no debt. He is working as a hockey referee during school making $20-$50/hr for 3 hrs or so a few nights a week. Between his summer job and that he has $$ for rent, food and fun. Most of his friends are digging a huge debt-pit, work non-stop or leech from mom n dad.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
The fact that student loans are the ONLY debt that the Feds don't allow to be negotiated for settlement, cannot be reduced in bankruptcy is a crime against the students.
 

Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
My son will graduate with no debt.

My son COULD have graduated with no debt but he decided that he'd party a bit more than recommended in his sophomore year and had to take, by his description, a 'victory lap', meaning a 5th year. He has about $20K in loans because of it. My daughter graduated debt free between scholarships and a 529 account. Both went to Purdue.

The new mentality of relying on student loans instead of saving for college is the root of a lot of this. Easy credit. But the kids are just like the parents with their credit cards and home eq lines. A lot of families spend $100's per month on the latest cell phones, sat or cable TV, new cars every 3-4 years, buying the most expensive home that they qualify for, etc. and then wonder why they can't save for college.

These kids were legally adults at the time they signed up for the loans; they should pay them off. They were smart enough to go to college but not smart enough to understand they'd have to pay them off? I don't buy it. But they are smart enough to know when the political climate is ripe for picking and making it a campaign issue might get them off the hook from paying back a legitimate debt.
 
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