Profits from student loans are ‘obscene’
washingtonpost.com
Profits from student loans are ‘obscene’
1–10 of 20 posts
Re: Profits from student loans are ‘obscene’
#2Just some context:
Student loans outstanding will exceed $1 trillion this year
http://usatoday30.usatoday.com/money/perfi/college/story/201...
The amount universities are charging students is what's 'obscene' to me. Making 5% profit on "obscene"ly risky loans isn't the cause of the US's student debt problem. This just sounds like populism and pandering.
Re: Profits from student loans are ‘obscene’
#3This is economics 101... Monopolies are bad, especially when they're protected by the government. It's absolutely sickening that you can't get rid of this debt even in bankruptcy, and these loans are given our to practically everyone. It's encouraged, in fact. This influx of guaranteed money inflates prices as well of course, to absurd levels.
Re: Profits from student loans are ‘obscene’
#4Just some context: Student loans outstanding will exceed $1 trillion this year http://usatoday30.usatoday.com/money/perfi/college/story/201... The amount universities are charging students is what's 'obscene' to me. Making 5% profit on "obscene"ly risky loans isn't the cause of the US's student debt problem. This just sounds like populism and pandering.
Universities charge students what they do because the students get loans to pay for them and the true cost is hidden.
Re: Profits from student loans are ‘obscene’
#5Just some context: Student loans outstanding will exceed $1 trillion this year http://usatoday30.usatoday.com/money/perfi/college/story/201... The amount universities are charging students is what's 'obscene' to me. Making 5% profit on "obscene"ly risky loans isn't the cause of the US's student debt problem. This just sounds like populism and pandering.
>Making 5% profit on "obscene"ly risky loans isn't the cause of the US's student debt problem. This just sounds like populism and pandering.
Student loans are federally guaranteed (i.e. if the student cannot repay the loan, the federal government will), so they aren't risky at all; the bank is getting its money either way. If you're going to shill for the banking industry, you're going to need to try harder than that.
Re: Profits from student loans are ‘obscene’
#6Just some context: Student loans outstanding will exceed $1 trillion this year http://usatoday30.usatoday.com/money/perfi/college/story/201... The amount universities are charging students is what's 'obscene' to me. Making 5% profit on "obscene"ly risky loans isn't the cause of the US's student debt problem. This just sounds like populism and pandering.
I don't know that you can pin this solely on universities. Simple supply and demand states that they'll keep raising rates until the market stops following them.
Each group has a hand in this mess, including the students themselves. Pointing to only one group suggests that we can find a solution there. I really don't think that's the case with this problem.
Re: Profits from student loans are ‘obscene’
#7Just some context: Student loans outstanding will exceed $1 trillion this year http://usatoday30.usatoday.com/money/perfi/college/story/201... The amount universities are charging students is what's 'obscene' to me. Making 5% profit on "obscene"ly risky loans isn't the cause of the US's student debt problem. This just sounds like populism and pandering.
There's nothing risky at all about federally guaranteed loans that cannot be discharged with a bankruptcy. It's pretty much printing money.
Re: Profits from student loans are ‘obscene’
#8Just some context: Student loans outstanding will exceed $1 trillion this year http://usatoday30.usatoday.com/money/perfi/college/story/201... The amount universities are charging students is what's 'obscene' to me. Making 5% profit on "obscene"ly risky loans isn't the cause of the US's student debt problem. This just sounds like populism and pandering.
I am thinking her name should be Senator Soundbite. The majority of students have twenty five thousand or less in student loans.
There are better alternatives than adjusting the rate to making sure students who want an education can afford it. Increasing Pell grants is one, having colleges which don't have price ceiling match them or not receive aid is another. Public Service programs which give way to loan forgiveness; you pay a percent of income for a number of years and the loan is forgiven provided you choose an approved career path. I would love to see another alternative listed in a recent businessweek article, limiting loan amounts based on what is studied. That would fix the problem with some colleges which sell degrees in low paying fields but charge exorbitant fees.
Still key is the rampant rise in tuition and related costs which is a reflection of easy money, as in the loans are just so easy to get
Re: Profits from student loans are ‘obscene’
#9Just some context: Student loans outstanding will exceed $1 trillion this year http://usatoday30.usatoday.com/money/perfi/college/story/201... The amount universities are charging students is what's 'obscene' to me. Making 5% profit on "obscene"ly risky loans isn't the cause of the US's student debt problem. This just sounds like populism and pandering.
>Making 5% profit on "obscene"ly risky loans isn't the cause of the US's student debt problem. This just sounds like populism and pandering. Student loans are federally guaranteed (i.e. if the student cannot repay the loan, the federal government will), so they aren't risky at all; the bank is getting its money either way. If you're going to shill for the banking industry, you're going to need to try harder than that…
some student loans are federally-guaranteed, not all (though, perhaps, most)
Re: Profits from student loans are ‘obscene’
#10It cannot be said often enough: state and federal support for universities has dropped considerably, and that is the root cause for the rise in tuition. Nothing else.
Again: the burden has been shifted from the taxpayer to the student.