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Comments about ‘Senate Republicans block student loan bill’

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Published: Wednesday, June 11 2014 7:53 p.m. MDT

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Chris B
Salt Lake City, UT

Here is a novel idea:

Lets follow a "pay as your promised" path.

I asked for student loans and I am committed to doing as I promised. The taxpayers didn't request that I take out students loans and they certainly didn't force them upon me. I personally asked for them and signed my name promising to fulfill my end of the agreement.

Ya, its the more difficult route. I agree it would be easier to take the "blame someone else" approach and force the taxpayer to pay for my shortcomings, but integrity is more important to me.

I don't go out to eat
I don't go to the movies
I don't go party with friends if it costs money
I eat spaghetti, oatmeal, and Peanut Butter and jelly sandwiches daily.
I don't have cable
My clothes are old

But to me, doing what I promised is important.

But not to everyone, huh barack?

M_Hughes_
Salt Lake City, UT

This is the reason why Republicans lose votes. This bill hurts no one, it helps those who are trying to help themselves by gaining an education.

When I graduated from college I was stuck with a 7.5% interest rate purely because of the timing of when I graduated. My siblings who graduated a year or two before me ended up with a 2% or 3% interest rate. I have been paying on those loans for nearly ten years now and have never missed a payment. It makes no sense to me that I am unable to refinance my loan for a more advantageous interest rate, while homeowners and others are - where is the logic in that?

And as far as Chris B's comment goes - the sponsors of the bill never suggested that the loan holders not meet their obligations, they're just trying to help them out. I think your reaction is a knee-jerk because the sponsors of the bill are Democrats, and that is simply asinine.

lost in DC
West Jordan, UT

M_Hughes_

Did you sign a note promising to pay at the rate offered?

I suspect you did, otherwise you would not have received the funds.

It makes no sense, now or ever, for rates on unsecured student loans to be the same or lower than those on residential mortgages. At least with the mortgage their is collateral, so the lender has some recourse should the borrower default.

lket
Bluffdale, UT

anybody should be able to refinace anything, any time so they can make it it easier in the world . chris b. is a fan of the banks and the other utra rich repulicans that would take every last dime from every last american to fatten their wallets and their stock holders and yet they also support pay day loan places that charge more interest than the moffia does and they made it leagal. over 500 % and counting. over 20% was illegal when i was a child.

David
Centerville, UT

Democrats are proposing to allow students to refinance at current, lower interest rates. Republicans say "no" the students have to keep their higher interest rates because that is the agreement they originally made.

Who would be affected by the passage of this bill? Lenders would collect less interest. Student borrowers would save some money.

Lenders make a lot of money (just look at who builds those tall skyscraper buildings in cities--banks and lenders).

The cost of higher education has escalated beyond inflation for years.

Why couldn't Republicans swallow their pride, embrace a Democrat proposal, and vote to help students who are trying to get a good education, position themselves for good jobs, but have to go into debt to achieve their educational goals?

Instead, Republicans are feeding the stereotype that they only care for the rich.

RedShirt
USS Enterprise, UT

To "M_Hughes" they didn't suggest that you should default on your loans, but that is what will happen.

Imagine that you go to a private university and rack up $100,000 in student loans while getting a sociology degree. The proposed law would limit your payments to 10% of your salary. The current law says that after 20 years the government will stop collecting and you don't have to pay any more. Over 20 years even if your salary averages $50,000, you will only repay the principle, you won't even touch the interest on your loans. It gets worse if you consider people going to even higher priced schools with degrees with lower earning potential.

To "David" part of the reason why education is so expensive is because money is so easy to get. The schools charge more because the government makes it so easy to get money from them. The schools are the ones that push college students into getting loans and grants.

lost in DC
West Jordan, UT

oops, "there is collateral" not "their is..." sorry

David,
private lenders are forbidden to make government guaranteed student loans - only the government (taxpayers) can do that now. the government (taxpayers) pay interest on the funds it borrows, and the interest charged on student debt should be enough to cover the interest expense of the funds the government borrows PLUS the principal on defaulted loans. BO's plan ignores those basic economic principles.

But what do economic principles matter when you are engaged in typical dem vote buying?

For existing loans, banks have their costs of funds to consider - if they match funded those loans, their matched funds were likely higher, and they are still paying those higher costs of funds for that portfolio. Do you really want banks paying 4 or 5% on the funds they are lending out at 3%? If all banks did that, they would start failing aginm with a devastating effect on the economy. Banks are NOT the bad guys.

Screwdriver
Casa Grande, AZ

Everybody can refinance their houses, cars and business loans. Why not student loans?

It's like republicans are TRYING to dumb down America by making it harder to finance an education investment. They attack education at every chance so why would I believe otherwise?

Yet all their own kids go to good colleges and none go to welding school. mmmm.

Fitness Freak
Salt Lake City, UT

As "lost in DC" points out; the devil is in the details.

Taxpayers could/would be on the hook for the bills if the students income doesn't grow sufficiently.

Chris B
Salt Lake City, UT

Hughes,

Their obligation is to do what they promised

Barack is changing the terms of what they promised to do

That, by definition, is not doing what they promised.

Midwest Mom
Soldiers Grove, WI

The main reason why tuition has gone up is not because money is easy, but because the right has seriously cut the amount that state universities contribute. America has abandoned education, instead of seeing it as a public good, it has become something for hedge funds to drool over. We are on a path of self-destruction.

Johnny Moser
Thayne, WY

Maybe I am missing something here. What do we "lose" by allowing students or more appropriately post-studies students that refinance to lower rates. The balances that are owed don't change do they? The amount of principle that we are supposed to get back remains the same. The money that would have been spent as interest that would have been freed up would get spent on something else which would boost the economy.

As a life-long Republican voter, I am left scratching my head. Maybe this is one where the details of all of the other "shaving cream" in the bill needs to be understood. I am hoping that is the case.

If you are better able to make the payments on any loan and don't default seems like a win for everyone involved, including all of the rest of America that is by default backing up those loans.

UtahBlueDevil
Durham, NC

Home Owners are allowed to refinance their mortgages.

Businesses regularly refinance their debt to take advantage of lower rates.

Our on congress authorized the refinance of US debt through by back our own bonds... and reissue of new debt at lower rates.

But student loan debt... no. Why is that again? If you are able to make it so people can afford to refinance their debt, if it is a good thing for mortgage loans, for business debt, even home equity loans, why not student debt which is often as large as a mortgage. You can even refinance your car loan...... just not a student loan.

Go figure.

The Real Maverick
Orem, UT

College students and fellow grads, I have some advice for you...

Don't you dare forget this come November. They repubs are banking that you will. They're banking on you to vote against your own interests. Time to rise up. Time to hold these greedy and selfish men accountable. It's time for college grads and students to vote out every single republican. Vote them all out. Vote democrat. And keep voting democrat until the GOP figures it out.

There's literally no reason why any middle class worker, woman, minority, or college student should vote for a republican in November.

Hamath
Omaha, NE

@ M_Hughes,

Saying that a bill would hurt no one, when the Bill will require $ from the federal gov't to pay for it is very troubling. If the gov't has to chip in some $ to make the bill work, this is money it has to get from somewhere. I'm not saying anything about whether the bill is good or bad. But your argument certainly is not convincing and even untruthful.

ElmoBaggins
Escalante, UT

when are people going to figure out that republicans will suck money from everyone in order to give more tax breaks to their corporate masters who,in turn,lay off these "legislators"

Mountanman
Hayden, ID

Republicans blocked a Senate vote? Republicans do not control the Senate and therefore can not block any vote, at least until November! Obviously some Democrats had to vote against it also so to say Republicans blocked it is disingenuous to say the least! Perhaps there are at least some Senate Democrats who think people should be responsible for THEMSELVES instead of taxpayers always paying the tab! Perhaps there is a glimmer of hope for Democrats after all?

Esquire
Springville, UT

I don't see why students should not be able to refinance for lower rates, just like homeowners do. It's not about the cost of education, that's in the past. It's about lowering out of pocket costs so that people can have a better quality of life. The GOP is showing its true colors here. Folks, it's not about you for the Republicans. It's about serving the money class. Folks are forced to pay higher than market rates (Check the prime rate and other interest rate indicators). Student loans can't be discharged in bankruptcy. We spend trillions in Iraq and Afghanistan, yet the GOP won't throw a bone to U.S. citizens trying to get by. There really is no excuse for this. Those of you with knee-jerk defenses of the Senate Republicans, please come off the ledge and think it through.

@ Mountanman, dude, take a few minutes and learn about the issue of the filibuster and cloture.

Mountanman
Hayden, ID

Esquire, Take a minute and learn about the nuclear option Reid and the Senate Democrats passed recently eliminating the filibuster! Filibusters are a thing of the past, thanks to Democrats!

Darrel
Eagle Mountain, UT

The reason we are losing pre-eminence in the world is because of Education. We are simply paying more for less.

If rates are high it will discourage those who could not otherwise go to school from attending. Without attending college, they have little chance to better their standing in life, and thus the cycle of poverty continues. The rich get richer, and those that cannot afford to move forward stay stuck...if they are lucky, otherwise their situation worsens. Costs go up, but wages remain stagnant.

We need to lower the barriers for education, not find ways to continue to kick the less fortunate while they are still down.

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