Colleges & Universities have no accountability for the product they are
selling, education. They take student's borrowed money and often provide an
education in a dead end career. Furthermore, lenders gladly pass out money
(loans) to hopeful & gullible students, knowing they (students) can't
bankrupt out of the debt when/if the education proves to be valueless. This is a
no-lose business scheme abetted by greedy politicians who made it happen.If Colleges/Universities and lenders were accountable for the product
they were selling, then you'd see drastic & quick changes for the
better. Until then, unsuspecting young students will continue being devoured by
the education monster.Public universities and for profit schools
both participate in the education scam.
I was talking with my niece about how she will pay for college. She is going to
work and save. She said she won't take a student loan because she knows
that people are spending years to pay them off.I supported student
loans years ago, but loans shifted the supply-demand curve. People who wisely
don't want to take out loans are now excluded because it is too expensive.
So apparently student loans were not a liberal or progressive idea. It has now
become a regressive idea which is keeping people from rising out of poverty.
HutteriteAmerican Fork, UT"The best fix for excessive student
loan debt is prevention. Students working before, and during their school years.
Respecting and appreciating what they've been given. Living frugally,
taking transit, choosing schools where they can live at home. And come spring,
no lavish vacation. That's work time."-- Yes, true for
White middle class students. Poor people and minorities are bombarded with ads
from so-called colleges that want their aid money and loan money. All you need
to do to learn this is watch daytime TV in many cities.
One of the few times I agree with Mike R. but he didn't need to throw any
type of Constitutional argument into the mix here. Face it. If you
borrow money for college pay it back. Oh wait a minute. Banks were bailed out
during the last financial crisis right? Fannie Mae and Freddie Mac were bailed
out as well? Oops. My bad. Kids: borrow as much as you want because your elders
have done a bad job of molding good behavior for you. We have only ourselves to
The best fix for excessive student loan debt is prevention. Students working
before, and during their school years. Respecting and appreciating what
they've been given. Living frugally, taking transit, choosing schools where
they can live at home. And come spring, no lavish vacation. That's work
The worst of the student debt comes due to the heavy promotion of for profit
colleges that have, for years, taken unqualified students, solely to gain the
aid money.I taught at 2 of them myself -- minorities were herded in,
and urged to apply for loans and grants. These were not the type of student who
would be swayed by more Government information.Most of the worst of
these so-called colleges are owned by republicans with great influence over
Congress. The greatest need for more information is for Congress to get the
message not to prop up these thieves who are pretending to run
"That average loan amount is higher than the average expected starting
salary of someone with a bachelor’s degree."$15 an hour
for a bachelors degree? o to Seattle, you can flip burgers and earn that much.
We do NOT have the resources to invest in the individual. All duties of the
Federal Government are enumerated in Article I, Section 8. All other duties are
to be left to the States or to the People, according to the 10th Amendment. In
no case, does the Federal Government have the right to tax the people to pay for
college education. Those who refuse to read and comprehend the Constitution may
disagree, but that only shows that either they would not read the Constitution
or that they cannot comprehend the English language.If a citizen
incurs debt while getting an education, that debt is his responsibility. It is
not the responsibility of the other citizens of the United States. Passing
responsibility to some "rich guy" is a favorite ploy of the liberals,
but there is no Constitutional justification to do that. When a
citizen has graduated High School, that citizen is deemed competent to
understand the basic concepts of debt, of revenue, of cause vs effects. If a
citizen cannot or will not handle his own debt, he has only himself to blame.
@Esquire: The reason education is so expensive is all the money we are throwing
at it through subsidized loans and grants. All that cash is inflating the price.
Doubling down on these government subsidies is just more of the same and will
result in still higher tuition and higher student loan debt. It's a vicious
cycle that benefits educators at the expense of everyone else. You didn't
address the issue of moral hazard, but it absolutely applies here just like with
banks. If I'm a student, why would I not take out the maximum loan, live a
great life in college without working, then avoid working some more after
graduation, pay 10% of my income for a few years and then let the taxpayers pay
the rest. That's what Obama is encouraging people to do. It's almost
as insane as bailing out rich bankers.
A better way would be to raise the minimum wage so that students take on less
@Kindred. I am in a skilled trade and I advocate to every person who wants to
get into a trade not to.Here are my reasons not to go into a trade.
Typically tradesmen are treated poorly by their employer. You will always have
to travel for work because you are always building your self out of a job.
Construction is capital and labor intensive and is either feast or famine. Our current unemployment system does not work for construction workers
either. You can expect to work the full year only during the best of times and
you can expect to work very little during the down times. Of course people would
just say get another job to bridge the gap but in reality who wants that type of
lifestyle? If I have to keep getting a non construction job during the down
times, then I should just get out of construction all together and avoid the
headaches.Of course a mass exodus of skilled tradesmen will only
cause cost to rise and projects to be delayed.
@ Invisible Hand, this isn't crying over spilled milk, as you say. It is
saying we have the resources to invest in our people. It is saying our
priorities are messed up. It's about burdening our young people with debt
that will decrease productivity for decades to come, while lenders profit.
Today's higher education environment is far different now than when I went
to college. I was able to work and get through my undergraduate program with no
significant debt. Things are very different today. Paying for tuition is an
investment I am willing to make, as long as there is satisfactory academic
progress. Maybe ask students to give something back. This won't create the
problems you claim. But if we had priorities on education rather than war and
war profiteers, we would be better off as a nation. Yes, the war money is spent
(but not paid for - and you cry over taxpayers getting stuck with the tab!) At
least with investment in education, there is a long term return on the
investment. We can and should do better, rather than keep on doing the same
thing over again.
Bail out?Looking for a lower interest rate is a bail-out?Capping the monthly payment @10% of monthly income is a bail-out?
The article brings up many great points that actually reinforce the need for
student debt relief. If Mitt Romney had proposed this as president, I suspect
that the editorial today would have been strongly in support of it. "More information," as the writer put it, is helpful. But it
doesn't help anyone with a loan originated before 2007, does it?
Furthermore, any amount of additional "information" will not negate the
fact that the decline of Utah state funding for higher education is the reason
for higher tuition and fees here in our state. I suggest we place the blame on:
1)the legislature for spending so little on education and 2) the conservative
media for prioritizing government spending on new global military interventions
over student loan debt relief.
I think one of the problems we are missing here is that there has been an
over-emphasis for the past 30-40 years on college education. We are all being
told that the only goal is college, but I have known many people of special
genius who do not do well in a traditional classroom setting. They have a lot to
contribute, but they are not judged according to what they can do in the world.
Everyone is being judged according to what they can do in the classroom.I am concerned that, within the next few years, there is going to be a
severe lack of the craftsmen needed to build and maintain infrastructure. We
need good plumbers, good carpenters, etc. and these jobs should require
apprenticeships, but not college degrees. Being a loan officer or a police
officer or a salesman or an exterminator should not require a college degree.
@Esquire: Stop crying over spilled milk. Those wars are a sunk cost. Most of us
can agree that the money could have been better spent. But going forward,
continued government subsidies for students only will only cause the spiraling
cost of college to go higher. Students don't benefit from that and neither
do taxpayers who will get stuck with the tab. At some point we have to look at
moral hazard here, just like in bank bailouts. If we bail out students, then
there is no incentive to borrow wisely. Just like with banks, we privatize the
benefits and socialize the losses. Heads they win, tails the taxpayers lose.
I"ve met a number of people who for example wanted to become a medical
assistant but were put in a much more expensive program that put them through
the M.A. program plus a CNA, pleobotomist etc and they end up in school for 1 or
2 years with 20k to 30K in debt for jobs that pay IN and Out Burger or less
wages. Often they end up working in a call center instead. The pitch was much
more for the benefit of the for profit college than the student.
Information is power and if a school and student receives thousands of dollars
in taxpayer guaranteed loans, we absolutely should be collecting data for the
benefit of informing future students and policy decisions. Some data is
available now, but it needs to be much more complete and provided to students up
front. Do we want tax payers on the hook for example if we find a high default
rate and that 5 years after graduation 90% of massage therapist graduates are
doing something else?Lets keep track of short and long term default
rates for specific majors, specific colleges, graduation rates, if students
practice in the field they majored in etc.
Amazing how you can find a way to take a shot at the Administration for trying
to do something and address a serious problem, after lots of neglect by the
opposition party.Check this out. For less than what we have spent
annually, on average, in Iraq and Afghanistan, we could pay the college tuition
bill for every student in the U.S. I think I would rather make that investment
than waste it like we did.
College education is the United States should be very much like public schools.
If a person wants to extend into a more professional field then a government
assisted loan at a very low interest rate. The loan would be repaid as an
additional tax from the barrower and would be paid back in twenty years.If we can give away BILLIONS to countries that hate us then the least we
can do is educate our children to create a better future!
More information may not be the only needed solution, but it would certainly