Would you support the following policy on student loans?

[Anonymous]

Do not loan money for for-profit colleges.

[Anonymous]

Anonymous wrote:My take on student loans....I have no problem with the government administering it, but it shouldn't be a profit center for the government, the rate should be what it costs to borrow. In other words, government is making college accessible for anyone who wants to go at a very low interest loan. The loan has to be repaid in full.

The student can get deductions from the principal based on the type of employment (ie rural healthcare) or service to the country in the form of something like military, national park, etc

ITA - and I'll go one step further. Not only should it not be a profit center for the government, it should not be a profit center, period. We should regulate to keep interest rates for student loans extremely low, only allow interest to compound once a year at most, late fees can't be added to the balance, etc. And some discharge should be allowed in bankruptcy.

Having a college degree is a net societal benefit. We shouldn't be punishing people for getting one.

[Anonymous]

Don’t expect others to pay back YOUR loans. It’s pretty simple.

[Anonymous]

Anonymous wrote:No bank would approve a regular loan of any amount to a student and the US govt. should not approve them.

This exactly.

My 18 yo can't get approved for a loan to buy a new car on his own but can get instantly approved for $40k for a year of school? It shouldn't be that way.

I distinctly remember my college advisor at my fancy private prep school (where I was on full scholarship) telling me that I didn't need to stress about my parents not being able to afford a $30k/year for college because I could get a student loan, nbd. Even when I voiced concern because I knew my parent's credit was so bad that they didn't even have a credit card, she assured me that it didn't matter when it came to student loans and besides, the money I'd make after graduation with my fancy school degree would be more than enough to pay them off in 10 years tops.

I've paid off the amount I borrowed and still owe about $20k because of interest.

[Anonymous]

Anonymous wrote:Don’t expect others to pay back YOUR loans. It’s pretty simple.

Yes! Let's take that same energy and apply it to the PPP loans!

Oh, you don't like that, do you?

[Anonymous]

No. Cancel them all. Public education should have been free in the first place.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Personally I think student loans, as administered by private banks, are predatory.

When private loans were allowed before Obama, they were much more competitive WRT interest rates than what the govt. has now.

This is a lie. I had loans in early 2000s with 2% interest rate from the government

My sister had Wells Fargo interest rates in the double digits.

Guess which one of us was able to pay off our student loans quicker even though I had taken out more due to graduate school.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don’t expect others to pay back YOUR loans. It’s pretty simple.

Yes! Let's take that same energy and apply it to the PPP loans!

Oh, you don't like that, do you?

Why did the Trump administration call the PPP loans loans?.... They were just hand outs

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Personally I think student loans, as administered by private banks, are predatory.

When private loans were allowed before Obama, they were much more competitive WRT interest rates than what the govt. has now.

This is a lie. I had loans in early 2000s with 2% interest rate from the government

My sister had Wells Fargo interest rates in the double digits.

Guess which one of us was able to pay off our student loans quicker even though I had taken out more due to graduate school.

That isn't my experience. Private loans in 2006 were just over 2% for us.

[Anonymous]

Anonymous wrote:No. Cancel them all. Public education should have been free in the first place.

No. If you take out a loan, you need to pay it back. But for gods sake, not double the amount. Lower or eliminate interest. Stop the madness.

[Anonymous]

Anonymous wrote:No. Cancel them all. Public education should have been free in the first place.

Almost everyone has an opportunity to go to a public institution, and many are talented enough to get scholarships at certain institutions.

1. Link default rates to universities. Universities with high default rates are out of any government loan programs.
2. Ability to borrow is a function of ability to pay... majors with higher incomes qualify for larger loan balances.
3. Set interest rates close to government cost of borrowing for any public loan programs.

[Anonymous]

Anonymous wrote:Everyone has to pay theirs off in maximum 15 years.

Limit the income-driven repayment plans to five years after graduation. This should give borrowers enough time to set themselves on their career tracks. The remaining ten years will be on the standard repayment plan. Keep forbearance as an option for economic hardship, which you have to document, or unemployment, which you have to document active job search the way you do to collect UI.

But interest is set and permanently capped at 0.5%.
There is absolutely no reason why people have to end up paying double the principle over decades. A lot of this happens because people sit on the income-driven repayment plans for too long and never pay the principle and the balance keeps growing, because of the ridiculous interest rates.

Student loans are NOT like mortgages in terms of financial decisions because when you buy a house, you generally have an idea of what you can afford, but when you take out a student loan, you have very little idea of what you will be able to afford. Even when you actively look at the ROI of a given field of study, you really don’t know what the job market will be in 10-20 years. That being said, I think the promissory notes and the guides they take you through should have a section where you play around with a tool that shows you the average salaries of given jobs and what repayment would look like for given sample fields.

For people with outstanding debt today, that has ballooned because of their interest rates - set all of theirs to zero interest. The government has already collected enough from them. Based on their 2021-2024 incomes, set them on a 10-, 15-, or 20-year full repayment plan with zero interest and zero “forgiveness.”

No. The interest should float with the current interest rates.

Tax payers do not need to be on the hook for spread.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don’t expect others to pay back YOUR loans. It’s pretty simple.

Yes! Let's take that same energy and apply it to the PPP loans!

Oh, you don't like that, do you?

I like that fine. Not sure what you’re babbling about.

[Anonymous]

Anonymous wrote:No. Cancel them all. Public education should have been free in the first place.

Great, I await reimbursement for the college tuitions of my three kids (all at public universities) paid for in full by saving for many years. Thanks!

[Anonymous]

Anonymous wrote:No. Cancel them all. Public education should have been free in the first place.

And have very tough tests for tracking in middle school and again for high school and a really tough high school completion test to determine who goes to college and who doesn't like they do in Europe.