Sen. Elizabeth Warren Intros Legislation To Allow Refinancing Of Student Loans

[Leadeye]

The whole college loan/tuition increase issue has that public/private money making smell to it.

 

[hornadylnl]

The whole college loan/tuition increase issue has that public/private money making smell to it.

If moms and dads quit paying or the students quit going for 1 year, tuition would start to drop.

It's akin to the regular choke and puke customer who pays $20 for a burnt grilled cheese and complains that they're powerless to affect change. The choke and puke will continue to produce $20 burnt grilled cheeses so long as there's enough customers to pay the bills.

 

[indiucky]

I heard this will be her campaign song........

[video=youtube;0NZbkuPi2_Y]https://www.youtube.com/watch?v=0NZbkuPi2_Y[/video]

 

[rockhopper46038]

It seems we have an aversion to low-interest loans for people who want to go to college but we are more than willing to let banks borrow money at near 0% interest so they can continue to make irresponsible loans and put our economy at risk of another collapse. Why do we always allow our tax dollars to benefit corporate America but will come up with all sorts of reasons why ordinary citizens should not benefit?

We (the taxpayers) shouldn't be providing unsecureable low interest loans to anybody.

Where is this forgiveness you speak of? The law that states if you've made continual monthly payments for ten years without missing a payment of the minimum amount and still haven't paid them off they cut you loose? What loan broker is going to let your minimum monthly not result in complete repayment inside of 10 years? It's a farse of a law made to let people think they can escape, they cannot, only death is forgiven, or disability. The government created this mess and it's a much bigger mess than the housing bubble. Why, because it's everyday Joe's, not big business that pay for this mistake. College tuition costs need to be reigned in, book fees, lab fees, the list goes on and on and on. Allowing people to use government loans to major in ridiculous things like philosophy, because of all those philosophy jobs out there helping repay those loans. The schools are raping America one student at a time, brainwashing them with socialist propaganda, teaching that America is a democracy, growl!

For the most part I complete agree with this post, but people have and do meet the ten year mark and have the balance if their loans forgiven. And there are other avenues to debt forgiveness other than death. I paid my loans off prior to 10 years, so I didn't personally see the programmed "forgiveness". Frankly, what was in my mind for that part of my comment was the perhaps apocryphal stories you read about the deadbeat med students that just default and the government not having apparently any appetite to track them down and recover the payments from their wages once they hang out their shingle.

The sad part is that to make enough to pay those loans back, you have to finish and get the degree, and THEN you can start paying. Without the degree, few people have the means to pay for college, while with the degree, they may still not have the means, due to lack of hiring.

To make the money, though, they are "forced" to take out the loan to go to college to earn the degree. I suppose they could be required to earn the money first, but I gotta tell you, if I had the means to make a couple hundred thousand a year without college, I can't see that I'd have much incentive to go to college at all.

In short, it's a vicious circle; no one is holding a gun to anyone's head ordering them to take out a loan for college. There is always a choice, but it's Hobson's Choice.

Blessings,
Bill

Someone already posted this, but while it agree it seems tough for be graduated to get jobs and almost impossible for non-degree holders to get jobs (I really hope Mike Rowe and his foundation get some traction here), people do have the choice to work their way through college as I did and then pay off the loans they did have to take in shorter than 10 years.

Student loan refinancing is NOT THE SAME as student loan forgiveness.
Most progressives would much rather have Warren run than Hillary; for the fervent base, she is their version of Ted Cruz.

I know this, and don't believe that I claimed otherwise; but it is still true that lowering the rate in an already artificially low rate loan (which no private lender would consider underwriting at the same rates, based on a risk assessment) is additional cost to the taxpayers that fund those loans. And yes, I think you are right about how the far Left views Warren.

That doesn't make any finacial sense. For those who can reduce the overall amount they'll pay by refinancing they would be irresponsible not to do that.

Agree that if such option were offered me, I would surely take advantage of it. Just not certain that the government ought to be in the business of providing floating locks on the downside without also floating the rates on the upside, if need be.

The whole college loan/tuition increase issue has that public/private money making smell to it.

And herein is where I really stand. I just don't think the government should be involved in loans to private citizens (or companies) at all. When it is easy for almost anyone to get almost any amount for an artificially low rate (just like the housing bubble) the providers of the pod or service (whether a house or an education) will raise the costs to capture the "easy" money. Why wouldn't a university keep raising their tuition so long as the government provides the backing to allow an unlimited demand pool of students able to borrow whatever amount of money is necessary to attend?

 

[IndyDave1776]

The sad part is that to make enough to pay those loans back, you have to finish and get the degree, and THEN you can start paying. Without the degree, few people have the means to pay for college, while with the degree, they may still not have the means, due to lack of hiring.

To make the money, though, they are "forced" to take out the loan to go to college to earn the degree. I suppose they could be required to earn the money first, but I gotta tell you, if I had the means to make a couple hundred thousand a year without college, I can't see that I'd have much incentive to go to college at all.

In short, it's a vicious circle; no one is holding a gun to anyone's head ordering them to take out a loan for college. There is always a choice, but it's Hobson's Choice.

Blessings,
Bill

They could get a job, and save money for college.
They could get a job, become indispensable, maybe make more.
They could join the military.
They could learn a craft. Craftsmen can still make pretty good money.
They could just not go to college. A lot of people go to college, rack up some serious debt, then work at jobs that do not even require a degree.

All things being equal, I would agree with Actaeon, but the problem is that all things are not equal.

1. If they could get a job which would pay for it, especially if they manage to be indispensable, there would be no need for college.

2. You generally cannot find a job without college or marketable experience that a graduating high school senior generally does not have that would generate enough revenue to pay for college.

2a. The primary reasons for this are decades of .gov interference artificially inflating the cost of college by virtue of artificially creating a huge demand which otherwise would not be there and then, in turn, making it impossible to find a decent entry-level job when those graduating seniors are competing with the glut of college graduates who can't find the better jobs for which they were sold on the need to go in the first place.

3. Join the military sound nice on the surface. What if your health won't support it? What if you are a conscientious objector regarding the forced medication regimen which is standard? What if you are not willing to be a plaything for a bunch of morons in Washington, as opposed to the army of your grandfather's or great-grandfather's generation?

4. Learning a craft would be a good idea. The biggest problem here is the lack of guidance afforded the high school students. For the most part, the are expected to magically think up these things on there own. It is generally not presented as an option unless they have a family member paying attention, which is generally not a condition with those who get in over their heads anyway. All this plus most of the outside voices screaming GO TO COLLEGE! GO TO COLLEGE! YOU WON'T AMOUNT TO ANYTHING UNLESS YOU GO TO COLLEGE!

In order to solve this problem as opposed to merely bandaging it, we need to find a way to return costs to a level a person can earn without either government largess or independently wealthy parents or grandparents, get the government out of artificially inflating the cost, get counselors in high schools that understand more ways to make a living than GO TO COLLEGE! IF YOU DON'T GO TO COLLEGE, YOU WON'T AMOUNT TO ANYTHING!, and hope some employers will get it through their heads that someone with a high school education who is capable of doing a job well is worth more than some idiot who can't but HAS A DEGREE in some useless major that isn't good for anything but beating the neighbors at Trivial Pursuit.

 

[88GT]

She's a populist who would expand the size and scope of government. Nothing in that combination screams intelligent to me.

 

[eldirector]

1) Lots of folks work through college, trade school, or certifications. Is it tough? Sure. But so is going into debt.
2) There are TONS of jobs that do not require a 4-year degree. Some pay pretty darned well. Is it cushy, 9-5, with tons of perks? Nope. But neither are the college grad jobs....
3) The military ain't for everyone. Plenty of other opportunities
4) What do you expect from the "education" machine? Of COURSE they will push more education! Don't rely on the schools to tell you how to run your life! If you do.... well, you get what you deserve.

Just did a quick search... in the Indy area there are 4700+ job openings RIGHT NOW that only require a HS diploma (or less). Retail, factory, warehouse, welding/trades, healthcare, technology, call centers.... All KINDS of stuff. And well above poverty income, too.

Heh... what do you think all those Philosophy majors end up doing, anyway?

 

[Denny347]

Back in 1991 when I started IUPUI, a credit hour was $90 and a full time student was 12 hours a semester so it was costing me $1100-$1200 a semester. I worked part time and I paid half and my dad (as part of the divorce agreement) paid the other half so I graduated without owing anything. However, that same credit hour now costs $350 and a typical semester costs about $4200-$4300. I got my BS in Criminal Justice and I was in the IU Cadet Program to become a certified police officer. It was worth it. However, at my current department, I only get $1000 extra a year for this degree and it means nothing towards a promotion, go figure. The days of going to college without a career plan are OVER. Obviously, if you want to be an engineer, architect, doctor, nurse, teacher, etc, you will need college. However, going to college for philosophy, geography, liberal arts, etc just to have a degree does not make financial sense. My wife works for the IU School of Medicine and just got her masters in adult education and that resulted in her getting a big promotion. With her discount it costs us about $1500 for the Masters so it was 100% worth it. Hell, I'm toying with the idea (nothing related to LE) and the kids will be set when they get of college age. On the inverse, my SIL got her BA at Butler for advertising. She took a loan out for the entire 4 years and landed a decent advertising job. However, it only pays her $40k+ a year and a HUGE chunk of her paycheck goes to her loans...NOT WORTH IT. Trades are a solid career. There is NOTHING wrong with being a welder, HVAC, electrician, plumber, exterminator, etc. I am 100% in line with Mike Rowe in this regard. For those going to college and parents don't have the money to pay for it, a college tuition loan APR seems reasonable. The students take responsibility by assuming the debit and most make good on their word.

 

[PistolBob]

That doesn't make any finacial sense. For those who can reduce the overall amount they'll pay by refinancing they would be irresponsible not to do that.

Math was hard for a lot of people. Some folks never figure it out. YOU DON'T SAVE MONEY BY BORROWING MORE MONEY.

 

[jbombelli]

I deal with a lot of tradesmen and contractors. They make good money, and there is a ton of work out there. Not everyone needs to go to college. Truthfully, not a day goes by wherein I don't regret going to college. I should have learned a trade instead.

 

[88GT]

Math was hard for a lot of people. Some folks never figure it out. YOU DON'T SAVE MONEY BY BORROWING MORE MONEY.

Its not "more." It's not additive. And there's a time factor involved in the calculations, but it can save someone money.

 

[pudly]

Just to make the student loan problem more concrete:

The Shocking Increase Of College Tuition By State | Zero Hedge

 

[avboiler11]

Almost coincides with the Recession, and federal/state funding for higher education being cut substantially...doesn't it?

 

[PistolBob]

Its not "more." It's not additive. And there's a time factor involved in the calculations, but it can save someone money.

Take my advice and read all the fine print on this little "refi" scam. It's more money. No one re-writes these loans for free. No one is going to give you X amount of money and expect X-Y for repayment.

Banks are not in the business to lose money....oh wait, apparently they are....or are they...so I gotta ask, which federal bailout money pot will these refinance bankers be getting their money from?

Face it kids, you can not borrow your way out of debt, no matter how hard you try.

 

[pudly]

Almost coincides with the Recession, and federal/state funding for higher education being cut substantially...doesn't it?

There are a number of factors, but the graph is misleading in that it doesn't represent total student debt going up by a factor of 6x-7x, as it might appear. Tuitions are still rising at above general inflation rates, but not nearly that fast. The graph really represents the federal government takeover of the student loan industry from the private sector in 2010. Newer student loans are owed to the federal government instead of banks and other lending institutions (Sallie Mae, etc). You can expect that graph to continue climbing as pre-2010 loans are paid off and newer loans are added to the government ledger.

One week after the Affordable Care Act (Obamacare) was signed into law, a second law was passed (Health Care and Education Reconciliation Act of 2010) that amended Obamacare and created a federal government takeover of student loans. It wasn't as if students couldn't borrow money for college in 2010, so one could speculate that the real reason for the direct takeover of student lending by the federal government was to allow more govt influence/control over millions of people and their futures. Now it is much easier to do things like bailouts for students that makes them much more likely to vote for those that propose those bailouts (ex: Elizabeth Warren). Any bailout would effectively transfer debt from the students that borrowed to get degrees that weren't cost-effective to the taxpayers. Sigh.

 

[PistolBob]

Any bailout would effectively transfer debt from the students that borrowed to get degrees that weren't cost-effective to the taxpayers. Sigh.

BINGO!!! So little Johnny and Joanie go off to college and get that degree in PolySci, Philosophy, and Underwater Basket Weaving...borrowing every nickle because they and their parents couldn't be bothered with working and saving...then once they graduate, they join the liberal party, and dump their debt on the backs of the only five people still working.

What happens when those five people quit and go on the teat?

 

[Expat]

BINGO!!! So little Johnny and Joanie go off to college and get that degree in PolySci, Philosophy, and Underwater Basket Weaving...borrowing every nickle because they and their parents couldn't be bothered with working and saving...then once they graduate, they join the liberal party, and dump their debt on the backs of the only five people still working.

What happens when those five people quit and go on the teat?

It looks like we are headed that way quickly...

“There are 58 million working-age people who are not working, and the labor force participation rate stands at 62.8 percent, the lowest level in 36 years.”

Economy Not Keeping Up With Population Growth | Washington Free Beacon

 

[88GT]

Take my advice and read all the fine print on this little "refi" scam. It's more money. No one re-writes these loans for free. No one is going to give you X amount of money and expect X-Y for repayment.

Banks are not in the business to lose money....oh wait, apparently they are....or are they...so I gotta ask, which federal bailout money pot will these refinance bankers be getting their money from?

Face it kids, you can not borrow your way out of debt, no matter how hard you try.

In this particular scenario, you may be right. But if you are characterizing all refinance efforts as "more" borrowing, as in adding to the principal or increasing the total amount of dollars to be repaid, you are incorrect.

 

[findingZzero]

I like her cause she cares about me....



Everyone agrees that we need better educated citizens to stay competitive in this global economy. Getting students out of crushing debt by refinancing loans seems like a decent way of addressing this. W/o a decent education we have no way to rise out of the economic under class. Anyone notice the middle class is disappearing? Warren will work with Republicans to find the best way to finance this. There are worse things to spend/invest public funds in. Fewer climbing walls and health spas at universities might be a beginning. Now let's talk about moral hazard. You go first.



Watching the libertarian circle jerk.

 

[printcraft]

This is going to win her lots of votes from many college students and grads who have outstanding student loans. Good move on her part. There are more than a few dems who would love to see her as the 2016 candidate. I think a Hillary/Warren ticket would be unbeatable by the gop. They better hope she has no higher aspirations.

It may be buying votes, but it's also addressing an almost trillion dollar bubble that threatens the economy. It's a smart move to start talking about something that's an economic threat. She's not as dumb as some people would like to think she is. She's just not on the right side of the aisle.

Oh, she's so smart and wonderful.
Another thread by you gushing over leftists and their taking this country down the drain.

Meanwhile, anybody that's talks about turning this country around you are right there to bash on.

Really, don't waste your time here up until the election we know what you are going to say.
You try to cloak it, but it comes through pretty clear.