The Student Loan debacle...or not

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    The Student Loan debacle...or not

    Interest rates on government backed student loans are about to almost double. This really comes as no surprise to me. While I believe in the value of government intervention when it comes to health, safety and poverty, this is one of those "market things" where I believe government should not be having a direct role.

    We don't need to lower interest rates on student loans. We need the interest rates to reflect the market. It's all theatre to hide the original problem which is the completely outrageous cost of higher education in this country.

    The cost of going to college has risen at a rate that is far greater than the cost of living or the rate of wage growth. The only..and I mean the only way to lower college costs are to create less demand.  Instead..the government is attempting to create more demand. Anyone remember what happened to the economy when the government decided that everyone should own a home? Government interference in the housing market led to an artifical market bubble that kept growing until it burst. Housing prices were artificially inflated, people wound up in underwater mortage situations and eventually the whole house of cards failed.

    Unless the government gets out of the college financing market..the same thing will happen and our young people will be saddled with continuing astronomical amounts of debt when they graduate.  Not everyone needs to go to college..just like not everyone needs to own a house. Better to let the market take care of itself. Better to let people who can't afford 50K a year opt for state or community college rather than private university. As long as overpriced colleges have a ready made financing scheme..they will continue to grow costs for consumers at an unsustainable rate..and our economy will never truly improve.

     
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    Re: The Student Loan debacle...or not

    You are spot on miscricket. Well except the little note about government in health, safety and poverty. They are overly involved in all three, not that they should not be involved at all. That involvement no doubt increases inefficiencies and cost in those areas as well. As a result the problems become intractable.

     

     
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    Re: The Student Loan debacle...or not

    Both parties are very close to agreement on the student loan issue.

    However, President Obama, as usual, needs to demagogue the issue and play Santa Claus, to make himself look like the hero.

    The Obama Administration is about endless campaigning and class warfare. And endless spending.

     
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    Re: The Student Loan debacle...or not

    In response to ComingLiberalCrackup's comment:

    Both parties are very close to agreement on the student loan issue.

    However, President Obama, as usual, needs to demagogue the issue and play Santa Claus, to make himself look like the hero.

    The Obama Administration is about endless campaigning and class warfare. And endless spending.



    Who paid for Obama's college education?  Did he have school loans?

     
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    Re: The Student Loan debacle...or not

    In response to ms_obstinate's comment:

    I'll have to get back to you on this one. My son just completed his first year of college, I don't want to see his interest rate double. We are waiting to hear what his financial aid will be for next year. 

    FYI cheifhowie, my son is a gamer....he managed to get on the Deans list both semesters, held down a job and write for the school paper.....not all gamers are dropouts. Smile




    I don't want to see his interest rate double either. I think if you took out a loan based on a certain interest rate..then that should be the rate you pay. I remember when there were a lot more merit scholarships given out...before the whole financing schemes took place. To me..if your son is a dean's list student..he should be getting a lot of merit scholarship money from the school.

    My point was that the market can never be true as long as the government is involved with the financing. People are going to continue to go to schools they can't afford and pay more money than they can afford for a college education. In some cases 21 year olds are leaving school with over 100k in debt. That's insane. Add in the interest and the cost for that education is even higher.

    I know a couple who..because they didn't want to say "no" to their daughter going to GW are now going to borrow significant money from their retirement accounts to help her cover the cost. This is in addition to loans she is taking out...and she is an honors and AP student.  I told the parents they should really send her to a school that they could all afford.

     
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    Re: The Student Loan debacle...or not

    In response to chiefhowie's comment:

    I think? The point is cost rising because of Student loans , easy money for these teaching enterprizes to scorge.

     

     Hardly anyone fails anymore if they have the money.  




    Yes..that was pretty much the point. Anyone want to guess how top heavy many colleges and universities have become with "administrators"?

     
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    Re: The Student Loan debacle...or not

    In response to miscricket's comment:

    In response to chiefhowie's comment:

     

    I think? The point is cost rising because of Student loans , easy money for these teaching enterprizes to scorge.

     

     Hardly anyone fails anymore if they have the money.  

     




    Yes..that was pretty much the point. Anyone want to guess how top heavy many colleges and universities have become with "administrators"?

     



    Good point. The occupy guys should be protesting against these universities.

     
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    Re: The Student Loan debacle...or not

    In response to Godvernment's comment:

    In response to bald-predictions' comment:

     

    In response to miscricket's comment:

     

    In response to chiefhowie's comment:

     

    I think? The point is cost rising because of Student loans , easy money for these teaching enterprizes to scorge.

     

     Hardly anyone fails anymore if they have the money.  

     




    Yes..that was pretty much the point. Anyone want to guess how top heavy many colleges and universities have become with "administrators"?

     

     



    Good point. The occupy guys should be protesting against these universities.

     

     



    they are...

     



    Sure.  that's why they named themselves "occupy wall street" and set up (and destroyed) a downtown part on Wall Street.

    Oh, BTW, now that the election is over, where are they?

     
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    Re: The Student Loan debacle...or not

    In response to skeeter20's comment:

    In response to Godvernment's comment:

     

    In response to bald-predictions' comment:

     

    In response to miscricket's comment:

     

    In response to chiefhowie's comment:

     

    I think? The point is cost rising because of Student loans , easy money for these teaching enterprizes to scorge.

     

     Hardly anyone fails anymore if they have the money.  

     




    Yes..that was pretty much the point. Anyone want to guess how top heavy many colleges and universities have become with "administrators"?

     

     



    Good point. The occupy guys should be protesting against these universities.

     

     



    they are...

     

     



    Sure.  that's why they named themselves "occupy wall street" and set up (and destroyed) a downtown part on Wall Street.

     

    Oh, BTW, now that the election is over, where are they?




    Wow..you weren't paying much attention to the Occupy movement were you? The college campus protests were big news. The rising cost of college was a big issue for the movement. Occupy Wall Street was just one branch of the larger occupy movement. Occupy Wall St. wasn't just about Wall St...it was about the financial and social system in general.

    You shouldn't be so narrowly focused on the name. After all..the Tea Party movement isn't really about tea...is it?

    Also..the Occupy movement started to dwindle long before our Presidential election. The reason for this is that they were never really properly organized. Their campouts should have been followed by a different kind of action. Instead they just camped out in cities indefinitely.  Who knows if it will ever come back. I doubt it will.

     

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