What is going on with student loans?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Remove incentives leading to predatory lending.

It sounds like it would serve these lenders right if students are allowed to declare bankruptcy. Why dump repayment on already-burdened taxpayers, instead of the lenders who deserve whatever comes their way? Maybe we should be asking our lawmakers to figure out a way to make it happen. Dumping this burden on taxpayers is the easy way out, but it's not the right way.

Lawmakers need to find a way for loan holders to declare bankruptcy. Make it happen. The only people who will be unhappy are the predatory lenders, and tough luck to them. The loan holders won't like the black mark on their credit rating, but that's what happens when people want to stop paying their financial obligations.

The "lenders" in this case is the federal government.

Time to stop lending, then, given the very poor results and the massive cost inflation.

You said "why dump repayment on already-burdened taxpayers" and instead let debtors declare bankruptcy. If you did that, it would fall on taxpayers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Remove incentives leading to predatory lending.

It sounds like it would serve these lenders right if students are allowed to declare bankruptcy. Why dump repayment on already-burdened taxpayers, instead of the lenders who deserve whatever comes their way? Maybe we should be asking our lawmakers to figure out a way to make it happen. Dumping this burden on taxpayers is the easy way out, but it's not the right way.

Lawmakers need to find a way for loan holders to declare bankruptcy. Make it happen. The only people who will be unhappy are the predatory lenders, and tough luck to them. The loan holders won't like the black mark on their credit rating, but that's what happens when people want to stop paying their financial obligations.

The "lenders" in this case is the federal government.

Time to stop lending, then, given the very poor results and the massive cost inflation.

You said "why dump repayment on already-burdened taxpayers" and instead let debtors declare bankruptcy. If you did that, it would fall on taxpayers.

I didn't say that. You don't realize there's several posters here?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Remove incentives leading to predatory lending.

It sounds like it would serve these lenders right if students are allowed to declare bankruptcy. Why dump repayment on already-burdened taxpayers, instead of the lenders who deserve whatever comes their way? Maybe we should be asking our lawmakers to figure out a way to make it happen. Dumping this burden on taxpayers is the easy way out, but it's not the right way.

Lawmakers need to find a way for loan holders to declare bankruptcy. Make it happen. The only people who will be unhappy are the predatory lenders, and tough luck to them. The loan holders won't like the black mark on their credit rating, but that's what happens when people want to stop paying their financial obligations.

The "lenders" in this case is the federal government.

This was Obama's insane plan. Republicans warned him costs would spiral out of control.

https://www.investors.com/politics/editorials/obama-created-student-loan-crisis-with-1-trillion-in-loans/
https://thehill.com/blogs/congress-blog/education/279512-president-obamas-horrible-terrible-legacy-on-student-loans/

[Anonymous]

Anonymous wrote:Isnt the federal government in the student loan business because it was how they passed obamacare and claim it was going to be "paid for". The same administration Biden was the VP at the time.

Well pretty convenient he now wants to forgive half a trillion dollars of that debt with no mention of obamacare. Can only hope the supreme court strikes this travesty down asap.

Pretty defeaning silence about this issue from every Democrat including Biden. Any time they claim their liberal/progressive agenda is "paid for" is complete crock of you know what.

[Anonymous]

Could somebody please break down what part of the student loan program is government, what part is private, where the predatory lending enters the picture? How is the government involved in predatory lending? I made a mistake in thinking private banks were at fault, and my apologies for confusing this point. Thank you.

[Anonymous]

Anonymous wrote:Could somebody please break down what part of the student loan program is government, what part is private, where the predatory lending enters the picture? How is the government involved in predatory lending? I made a mistake in thinking private banks were at fault, and my apologies for confusing this point. Thank you.

Perhaps SOME students have loans left prior to 2010 when Obama had the federal govt. take them over. Probably not many though.
And, how can Biden "forgive" loans made by private companies? He couldn't.
So, I would say those eligible for forgiveness are 100% funded by the government loans.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Isnt the federal government in the student loan business because it was how they passed obamacare and claim it was going to be "paid for". The same administration Biden was the VP at the time.

Well pretty convenient he now wants to forgive half a trillion dollars of that debt with no mention of obamacare. Can only hope the supreme court strikes this travesty down asap.

Pretty defeaning silence about this issue from every Democrat including Biden. Any time they claim their liberal/progressive agenda is "paid for" is complete crock of you know what.

This piece lays out the folly of this whole plan.

According to the Congressional Budget Office, $8.7 billion of the money collected in student loan interest payments actually goes to pay for ObamaCare. The CBO estimates that the interest rate on these loans could be reduced from 6.8 percent to only 5.3 percent were the funds not used to subsidize the healthcare reform law and other federal programs.

{mosads} The profits from student loans are divided as follows: $8.7 billion goes to pay for ObamaCare; $10.3 billion goes to pay down the federal debt; and $36 billion goes to Pell Scholarship grants.

The 16 million American students who now have student loans are paying for ObamaCare out of their meagre incomes just at the point when they graduate from college and need funds to start their lives, buy their first homes and begin a family.

Alexander notes that the federal government borrows the funds for the student loan program at 2.8 percent and then lends it to the students at 6.8 percent, a markup of 4 percent.
The nexus between the student loan program and ObamaCare is purely opportunistic. As the Affordable Care Act was passing through Congress, its wheels greased by the wholly fraudulent assertion that it didn’t need 60 votes to pass the Senate, the administration decided to put in a provision eliminating the private student loan industry, fully federalizing the program. What was not widely understood at the time was that it hoped to raid the funds paid by students to provide money for the bottomless pit known as ObamaCare.

https://thehill.com/opinion/columnists/dick-morris/151801-loans-subsidize-obamacare/

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Remove incentives leading to predatory lending.

It sounds like it would serve these lenders right if students are allowed to declare bankruptcy. Why dump repayment on already-burdened taxpayers, instead of the lenders who deserve whatever comes their way? Maybe we should be asking our lawmakers to figure out a way to make it happen. Dumping this burden on taxpayers is the easy way out, but it's not the right way.

Lawmakers need to find a way for loan holders to declare bankruptcy. Make it happen. The only people who will be unhappy are the predatory lenders, and tough luck to them. The loan holders won't like the black mark on their credit rating, but that's what happens when people want to stop paying their financial obligations.

The "lenders" in this case is the federal government.

This was Obama's insane plan. Republicans warned him costs would spiral out of control.

https://www.investors.com/politics/editorials/obama-created-student-loan-crisis-with-1-trillion-in-loans/
https://thehill.com/blogs/congress-blog/education/279512-president-obamas-horrible-terrible-legacy-on-student-loans/

Obama was truly awesome.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Isnt the federal government in the student loan business because it was how they passed obamacare and claim it was going to be "paid for". The same administration Biden was the VP at the time.

Well pretty convenient he now wants to forgive half a trillion dollars of that debt with no mention of obamacare. Can only hope the supreme court strikes this travesty down asap.

Pretty defeaning silence about this issue from every Democrat including Biden. Any time they claim their liberal/progressive agenda is "paid for" is complete crock of you know what.

This piece lays out the folly of this whole plan.

According to the Congressional Budget Office, $8.7 billion of the money collected in student loan interest payments actually goes to pay for ObamaCare. The CBO estimates that the interest rate on these loans could be reduced from 6.8 percent to only 5.3 percent were the funds not used to subsidize the healthcare reform law and other federal programs.

{mosads} The profits from student loans are divided as follows: $8.7 billion goes to pay for ObamaCare; $10.3 billion goes to pay down the federal debt; and $36 billion goes to Pell Scholarship grants.

The 16 million American students who now have student loans are paying for ObamaCare out of their meagre incomes just at the point when they graduate from college and need funds to start their lives, buy their first homes and begin a family.

Alexander notes that the federal government borrows the funds for the student loan program at 2.8 percent and then lends it to the students at 6.8 percent, a markup of 4 percent.
The nexus between the student loan program and ObamaCare is purely opportunistic. As the Affordable Care Act was passing through Congress, its wheels greased by the wholly fraudulent assertion that it didn’t need 60 votes to pass the Senate, the administration decided to put in a provision eliminating the private student loan industry, fully federalizing the program. What was not widely understood at the time was that it hoped to raid the funds paid by students to provide money for the bottomless pit known as ObamaCare.

https://thehill.com/opinion/columnists/dick-morris/151801-loans-subsidize-obamacare/

Wasnt aware student loan rates were artificially high to subsidize obamacare. Never made much sense to me why student loans were at 6.8 when rates were near zero these last couple years.

[Anonymous]

Student loan payments need to be resumed.

[Anonymous]

Anonymous wrote:Could somebody please break down what part of the student loan program is government, what part is private, where the predatory lending enters the picture? How is the government involved in predatory lending? I made a mistake in thinking private banks were at fault, and my apologies for confusing this point. Thank you.

The arguments about “predatory” lending take many angles:
-Teenagers with limited personal finance experience shouldn’t be able to take out 5 and 6 figures in loans
-A number of colleges, especially for profit, lied about job placement results, average salaries post graduation, graduation rates, and time needed to complete studies
-A number of colleges would use predatory practices to force students to remain enrolled and take out more loans. In essence, they would make it very difficult for students to graduate. One example in my PSLF Facebook group was from an educator doing a PhD program at a for profit school. They told her it would take 3 years to finish the program. Instead, it took her 8 years as the PHD committee kept rejecting her dissertation…for years and years. She said it was the same for a number of students in the PhD program. Eventually the school dismissed the head of the PhD program after lawsuit, but the students were already saddled with hundreds of thousands in debt.
-The loan servicers often lost payment history information, or would compound accrued interest without warning to those in repayment. This has caused tens of thousands of student loan holders to overpay their student loans by many thousands of dollars. Student loan services would often provide bad information to those in repayment that would cost them money, or for certain monthly payments to not count towards PSLF because the auto-payments were one cent short of the minimum payments. Lots of fraudulent activity happening with loan servicers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Could somebody please break down what part of the student loan program is government, what part is private, where the predatory lending enters the picture? How is the government involved in predatory lending? I made a mistake in thinking private banks were at fault, and my apologies for confusing this point. Thank you.

The arguments about “predatory” lending take many angles:
-Teenagers with limited personal finance experience shouldn’t be able to take out 5 and 6 figures in loans
-A number of colleges, especially for profit, lied about job placement results, average salaries post graduation, graduation rates, and time needed to complete studies
-A number of colleges would use predatory practices to force students to remain enrolled and take out more loans. In essence, they would make it very difficult for students to graduate. One example in my PSLF Facebook group was from an educator doing a PhD program at a for profit school. They told her it would take 3 years to finish the program. Instead, it took her 8 years as the PHD committee kept rejecting her dissertation…for years and years. She said it was the same for a number of students in the PhD program. Eventually the school dismissed the head of the PhD program after lawsuit, but the students were already saddled with hundreds of thousands in debt.
-The loan servicers often lost payment history information, or would compound accrued interest without warning to those in repayment. This has caused tens of thousands of student loan holders to overpay their student loans by many thousands of dollars. Student loan services would often provide bad information to those in repayment that would cost them money, or for certain monthly payments to not count towards PSLF because the auto-payments were one cent short of the minimum payments. Lots of fraudulent activity happening with loan servicers.

Teenagers CANNOT take out 5 or 6 figure loans! The maximum federal stafford loan limits without a co-signer are as follows:

-$5500 1st year
-$6500 2nd year
-$6500 3rd year
-$7500 4th year

That’s it. $27k total. That’s in addition to pell grants for some students.

Parent Plus loans are entirely in the parents’ names. Co-signed private loans are CO-SIGNED by the parent. The student cannot do that on their own.

Stop spreading misinformation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Could somebody please break down what part of the student loan program is government, what part is private, where the predatory lending enters the picture? How is the government involved in predatory lending? I made a mistake in thinking private banks were at fault, and my apologies for confusing this point. Thank you.

The arguments about “predatory” lending take many angles:
-Teenagers with limited personal finance experience shouldn’t be able to take out 5 and 6 figures in loans
-A number of colleges, especially for profit, lied about job placement results, average salaries post graduation, graduation rates, and time needed to complete studies
-A number of colleges would use predatory practices to force students to remain enrolled and take out more loans. In essence, they would make it very difficult for students to graduate. One example in my PSLF Facebook group was from an educator doing a PhD program at a for profit school. They told her it would take 3 years to finish the program. Instead, it took her 8 years as the PHD committee kept rejecting her dissertation…for years and years. She said it was the same for a number of students in the PhD program. Eventually the school dismissed the head of the PhD program after lawsuit, but the students were already saddled with hundreds of thousands in debt.
-The loan servicers often lost payment history information, or would compound accrued interest without warning to those in repayment. This has caused tens of thousands of student loan holders to overpay their student loans by many thousands of dollars. Student loan services would often provide bad information to those in repayment that would cost them money, or for certain monthly payments to not count towards PSLF because the auto-payments were one cent short of the minimum payments. Lots of fraudulent activity happening with loan servicers.

Teenagers CANNOT take out 5 or 6 figure loans! The maximum federal stafford loan limits without a co-signer are as follows:

-$5500 1st year
-$6500 2nd year
-$6500 3rd year
-$7500 4th year

That’s it. $27k total. That’s in addition to pell grants for some students.

Parent Plus loans are entirely in the parents’ names. Co-signed private loans are CO-SIGNED by the parent. The student cannot do that on their own.

Stop spreading misinformation.

Yeah i read that and was like what!?! Most of these super high balances are grad loans.

[Anonymous]

Thank you everyone. My remaining 83k in loans was forgiven this week. This will help with my family trip this year to Paris and the Loire, and our family ski passes for next year. Truly great policy to forgive loans!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Isnt the federal government in the student loan business because it was how they passed obamacare and claim it was going to be "paid for". The same administration Biden was the VP at the time.

Well pretty convenient he now wants to forgive half a trillion dollars of that debt with no mention of obamacare. Can only hope the supreme court strikes this travesty down asap.

Pretty defeaning silence about this issue from every Democrat including Biden. Any time they claim their liberal/progressive agenda is "paid for" is complete crock of you know what.

This piece lays out the folly of this whole plan.

According to the Congressional Budget Office, $8.7 billion of the money collected in student loan interest payments actually goes to pay for ObamaCare. The CBO estimates that the interest rate on these loans could be reduced from 6.8 percent to only 5.3 percent were the funds not used to subsidize the healthcare reform law and other federal programs.

{mosads} The profits from student loans are divided as follows: $8.7 billion goes to pay for ObamaCare; $10.3 billion goes to pay down the federal debt; and $36 billion goes to Pell Scholarship grants.

The 16 million American students who now have student loans are paying for ObamaCare out of their meagre incomes just at the point when they graduate from college and need funds to start their lives, buy their first homes and begin a family.

Alexander notes that the federal government borrows the funds for the student loan program at 2.8 percent and then lends it to the students at 6.8 percent, a markup of 4 percent.
The nexus between the student loan program and ObamaCare is purely opportunistic. As the Affordable Care Act was passing through Congress, its wheels greased by the wholly fraudulent assertion that it didn’t need 60 votes to pass the Senate, the administration decided to put in a provision eliminating the private student loan industry, fully federalizing the program. What was not widely understood at the time was that it hoped to raid the funds paid by students to provide money for the bottomless pit known as ObamaCare.

https://thehill.com/opinion/columnists/dick-morris/151801-loans-subsidize-obamacare/

Wasnt aware student loan rates were artificially high to subsidize obamacare. Never made much sense to me why student loans were at 6.8 when rates were near zero these last couple years.

Perhaps if you listened more to Republicans, you would have known. This is the problem with partisan media