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Comments about ‘U.S. lawmakers continue to fight for action on student loans’

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Published: Tuesday, July 2 2013 6:50 p.m. MDT

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Ett
Salt Lake City, UT

Why are we allowing Congress to fight for lower rates on student loans that are already losing money due to artificially low rates? That's what what we should be asking. Despite the low rates already in place on current loans, student loans have one of the highest rates of default. I think it's time we made the rates realistic instead of enticing borrowers with untenable rates that are picking the pockets of taxpayers.

DN Subscriber 2
SLC, UT

Typical politicians eager to buy votes by pandering to some "victim class."

The government should NOT be in the loan business at all, especially student loans.

If they just do nothing (and Congress can be really good about doing nothing!) they will slightly reduce our spending. Then, they can devote time to working on cutting more billions until we have our spending under control. Of course, that does not begin to pay off a cent of the $17 trillion debt we have run up.

If any kids learn anything in college, it should be that our inability to live within our means is economic disaster, and they will be the main ones to suffer.

JimInSLC
Salt Lake City, UT

Last year the govt. made $51 billion on the interest paid on student loans. Doesn't sound like a financial loss to me. There may be some people unable to make payments because they cannot get a job, but I would not call that a default since there is no way to escape the bondage of a student loan, the debt will be collected through garnished wages and if it comes down to it, withholding of social security payment.

Low rates? The rate was 3.4%, but due to inaction of congress the rate went to 6.8%. This sounds low, but consider that a 30 year mortgage is still around 3 or 4%. Banks are loaned money at less than 1%. Why not offer student loans at that rate?

These folks strapped with student loan debt are the very same people that will be contributing to social security to help keep that afloat. The sooner that they can get their debt paid the sooner they can spend money in the economy, buying houses, cars, etc... The country benefits from an educated populace. Unlike the banks, Taxpayer are not bailing out folks with student loan debt.

worf
Mcallen, TX

What does interest matter, when many don't pay back their loans?

SCfan
clearfield, UT

I have a question about the "high cost" of education. Universities like Harvard and such have billions in endowment money sitting around. Why then do they increase the tuition cost? Many colleges in America could greatly reduce the cost and still be operating at a profit. Yet the liberals who run these institutions want govenment money to pay for it, not private money. I wouldn't donate a penny to a rich college until they reduced the debt laden cost of their over-rated educations.

lost in DC
West Jordan, UT

JiminSLC

$51B interest ACCRUED on student loans. How much was collected? How much principal was actually in default and will NEVER be repaid?

According to the CBO (not the most reliable, but the best source I could find), the government expects to make $44B in 2013 in interest, NOT the $51B you indicated. Once you factor in expected defaults, it drops to $5.6B, roughly 1/10 of what you said. We can debate whether there is any societal or economic benefit to subsidized student loans, but let’s be honest in our arguments.

Rates need to reflect risk. Student loan delinquencies exceed 15% - even in the worst of the barney frank induced housing crisis, delinquencies on mortgage never reached that height.

If banks were required to charge no more on student loans than what they paid for their deposits, how would they pay for ANY of their costs?

SCfan,
Another factor leading to the high cost of college is the rapacious cost of text books. All the major textbook publishers have the same parent – but holder and the injustice department are doing nothing about THAT monopoly – they want the young MORE dependent on dem largess.

SCfan
clearfield, UT

Lost in DC

And further more, I believe many of these very expensive text books are written by the professors themselves, who probably make lots of money because their students have to buy the books to take the class. Quite a racket!

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