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Old 12-01-2012, 01:42 PM   #1
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Washington proposes $1 trillion bailout for delinquent student loans

Really???? Why???? What ever happened to accountability for your actions? With the national debt were it is currently, why not tac on another trillion.

America’s now-nationalized student loan industry just reached a value of $1 trillion, according to Citigroup, growing at a 20 percent-per-year pace. Since President Obama nationalized the industry (a tacked-on provision of the Obamacare bill), tuition has gone up 25 percent and the three-year default rate is at a record 13.4 percent.
Ron discussed this problem last night with Larry Kudlow:

With many young people unable to pay their loans (average graduating debt is about $29,000), Citigroup and others are speculating that this industry might be ripe for a bailout.
To pay off all the current defaults, Citigroup says it would cost taxpayers $74 billion. However, this number doesn’t include those who will default in the coming years, and, when the government rewards the defaulters, it will encourage more borrowers not to pay their debts.
And liberals in Congress have proposed forgiving all student loans via “The Student Loan Forgiveness Act 2012,” costing taxpayers $1 trillion.
Adding another $1 trillion dollars to the national debt isn’t exactly “forgiveness” for young people—it’s prolonging the payoff. In fact, student loan bailouts are a catch-22 for young people because they’re going to be held accountable for paying off the national debt and interest payments.
A student loan bailout will also be rewarding higher education bureaucrats for a diminished product. A college degree used to mean that a person would add on average $1 million to their income over their lifetime. Today a college degree only guarantees an average $300,000 in added income over a lifetime.
The answer isn’t a bailout. The student loan industry must to be returned to the private sector. Would a private lender ever invest $100,000 of their money in a student that had no plan? No.
It’s not about limiting access to college; it’s about making sure students have a well-thought out plan for their future before investors put a $100,000 stake in their education. College should be about specializing in a trade rather than defaulting to general studies that won’t lead to a job.
A civics education is important, but why would an employer hire someone with no applicable work skills, especially in a slow economy?
If we wish to end the incentives for bailouts, we need to hit higher education in the purse. Endless government money and bailouts won’t get our students jobs, and it won’t fix the problem.

http://www.breitbart.com/Big-Governm...-Loan-Catch-22

Last edited by Upheval; 12-01-2012 at 02:03 PM. Reason: Forgot Linky
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Old 12-01-2012, 07:46 PM   #2
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lets pay for it by stopping the pay in excess of 20K a year, ,all medical benefits , current and future, and all pensions paid to all politicians in the future untill we balance the budget and reduce the federal tax rates to under 20% for everyone, at least that way it might help.
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Old 12-01-2012, 08:44 PM   #3
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What a fool I was for being financially responsible, paying all of my loans, and saving to ensure my retirement.
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Old 12-02-2012, 07:55 AM   #4
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Bailout or no...there are serious problems with the student loan/college/job arena.

A) Everyone...E-V-E-R-Y-O-N-E... is sold a bill of goods in high school that they NEED to go to college. Thats a problem because not everyone in high school can afford it or wants to...so they spend 7 years and $40,000 getting an underwater basket weaving degree and exit college with a $7/hr job upsizing fries.

B) Even some of the people who successfully go through college are having a hard time finding work in the real job arena that offers enough pay to pay off loans and support a reasonable post college lifestyle.

C) Some employers have a lot of balls REQUIRING a degree for some BS job that a well trained chimp could do...which results in A) above.

D) Some people are just idiots and go to college anyway, full well knowing they are flushing away cash that they will never recoup.

So, there is plenty of blame to go around.
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Old 12-02-2012, 10:48 AM   #5
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Bailout or no...there are serious problems with the student loan/college/job arena.

A) Everyone...E-V-E-R-Y-O-N-E... is sold a bill of goods in high school that they NEED to go to college. Thats a problem because not everyone in high school can afford it or wants to...so they spend 7 years and $40,000 getting an underwater basket weaving degree and exit college with a $7/hr job upsizing fries.

B) Even some of the people who successfully go through college are having a hard time finding work in the real job arena that offers enough pay to pay off loans and support a reasonable post college lifestyle.

C) Some employers have a lot of balls REQUIRING a degree for some BS job that a well trained chimp could do...which results in A) above.

D) Some people are just idiots and go to college anyway, full well knowing they are flushing away cash that they will never recoup.

So, there is plenty of blame to go around.
I remember growing up and hearing the only certainty in life is that there isn't any. Death and taxes I was told were the only ones. So the taxpayer should have to bailout anyone whom makes poor financial decisions or when things don't go just like the individual expected?

Poor planning and decision making on your part doesn't constitute a bailout on my part.
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Old 12-02-2012, 01:37 PM   #6
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My parents told me they could not afford to pay for my college. I didn't really know for sure whether I wanted to go to college. So I worked at first.

After a few years I realized I wanted to be an engineer, and enrolled in evening courses that would eventually allow me to earn a BSME, which I did in 7 years.

During that time, I moved out on my own, and had to make sacrifices to afford my education. It was very difficult, but I ended up with a degree, a great career, and no student loans.
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Old 12-02-2012, 02:23 PM   #7
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There needs to be a way to deal with students who simply cannot pay their debt back after several years. Here is a common scenario: 20 year-old never thought college was for him. He decides that tech school is better for him. He borrows $18k to go to a 2 year tech program, graduates and there is no work in his field. After several years, he still isn't in his field, his skills have aged and he is working in retail at $12/hr. He can never pay that $18k back, but the debt and accruing interest never goes away. Before the '80's, he could hit rock bottom, file bankruptcy and eliminate his debt. But now it never goes away, and if he makes it to SS age, they will garnish 25% of his check to pay the now massive debt which he will be paying the rest of his life. All because when he was 20, he tried to make something better of himself and it didn't work. This is shameless to tie this anchor around a person't neck for a whole lifetime with no way out. I am not for making it easy to default - like someone said, that would just encourage more default. But bankruptcy has severe repurcussions for 7-10 years, so it won't be done lightly. I say all of this because I know someone just like this. One of my dental assistants went to a videography tech school 15 years ago and borrowed $17k for tuition. She was in the field for about 2 years, but could barely get above $10-12/hr. She is a single mom of two kids and needs every penny for the three of them to survive. Her $17k is now nearly $30k and she has no way to pay it down. In addition, the government is constantly harrassing her for payments she simply can't make and has garnished her wages several times over the years. People can borrow $1M to start a business, fail in one year and file bankruptcy to eliminate their debt. It should be no different for student loans. There needs to be a difficult, but compassionate way out of this mess. Essentially our government (taxpayers) are gambling on the success of these students when we make the loans - just as all lending instituitions do. We benefit when they do succeed - and 87% of them do it. It's time for some relief for those who can't.
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Old 12-02-2012, 03:59 PM   #8
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Originally Posted by Texdentist View Post
There needs to be a way to deal with students who simply cannot pay their debt back after several years. Here is a common scenario: 20 year-old never thought college was for him. He decides that tech school is better for him. He borrows $18k to go to a 2 year tech program, graduates and there is no work in his field. After several years, he still isn't in his field, his skills have aged and he is working in retail at $12/hr. He can never pay that $18k back, but the debt and accruing interest never goes away. Before the '80's, he could hit rock bottom, file bankruptcy and eliminate his debt. But now it never goes away, and if he makes it to SS age, they will garnish 25% of his check to pay the now massive debt which he will be paying the rest of his life. All because when he was 20, he tried to make something better of himself and it didn't work. This is shameless to tie this anchor around a person't neck for a whole lifetime with no way out. I am not for making it easy to default - like someone said, that would just encourage more default. But bankruptcy has severe repurcussions for 7-10 years, so it won't be done lightly. I say all of this because I know someone just like this. One of my dental assistants went to a videography tech school 15 years ago and borrowed $17k for tuition. She was in the field for about 2 years, but could barely get above $10-12/hr. She is a single mom of two kids and needs every penny for the three of them to survive. Her $17k is now nearly $30k and she has no way to pay it down. In addition, the government is constantly harrassing her for payments she simply can't make and has garnished her wages several times over the years. People can borrow $1M to start a business, fail in one year and file bankruptcy to eliminate their debt. It should be no different for student loans. There needs to be a difficult, but compassionate way out of this mess. Essentially our government (taxpayers) are gambling on the success of these students when we make the loans - just as all lending instituitions do. We benefit when they do succeed - and 87% of them do it. It's time for some relief for those who can't.
I see your point. No easy answer at this point and with the current national debt situation it doesnt make it any easier to answer.
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Old 12-02-2012, 04:11 PM   #9
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Poor planning and decision making on your part doesn't constitute a bailout on my part.
I didn't say that at all. I said there is plenty of blame to go around. Sorta the same thing that Tex said.
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Old 12-02-2012, 04:13 PM   #10
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My parents told me they could not afford to pay for my college. I didn't really know for sure whether I wanted to go to college. So I worked at first.

After a few years I realized I wanted to be an engineer, and enrolled in evening courses that would eventually allow me to earn a BSME, which I did in 7 years.

During that time, I moved out on my own, and had to make sacrifices to afford my education. It was very difficult, but I ended up with a degree, a great career, and no student loans.
Yes, it is possible. Especially for the higher earning careers. But it doesn't always work like that.

Colleges are in part to blame for this too. I was pissed that my first 2 years of college were essentially "high school 2." Why does an engineering student need 2 semesters of world history and a semester of music appreciation? So the college can charge for a little ore tuition cash, that's why.
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Old 12-02-2012, 08:33 PM   #11
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There were few problems with the student loan situation until the Fed Govt. became invovled., not to mention the costs of College wasn't inflated.
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Old 12-03-2012, 04:10 AM   #12
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The Stepson joined the US Marines last year right when he turned 18 while a Senior in Highschool a few months from graduation. Told no one till after the fact.
Straight A student in advanced classes, honor roll.
Seen college was a scam today to most.
No Jobs for college graduates as a majority paying $20 per hour or more immediate after graduation.
You get to flip burgers after graduation till you die.
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Old 12-03-2012, 04:59 AM   #13
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The Stepson joined the US Marines last year right when he turned 18 while a Senior in Highschool a few months from graduation. Told no one till after the fact.
Straight A student in advanced classes, honor roll.
Seen college was a scam today to most.
No Jobs for college graduates as a majority paying $20 per hour or more immediate after graduation.
You get to flip burgers after graduation till you die.
I went that rout as well, Marines then worked a bit more then college. IMO that is the best way to go. Get to see the world, get some experience under your belt and when you get out, the money you put toward the GI bill while you are in helps you when you decide to go to college after you get out. Win Win for everyone.
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Old 12-03-2012, 05:18 AM   #14
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Plenty of good professions out there that don't require a degree, yet have a higher salary/hourly than most jobs that require a degree.
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Old 12-03-2012, 06:14 AM   #15
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I went that rout as well, Marines then worked a bit more then college. IMO that is the best way to go. Get to see the world, get some experience under your belt and when you get out, the money you put toward the GI bill while you are in helps you when you decide to go to college after you get out. Win Win for everyone.
Yes I believe You are right too.
Smart kid.
He shopped around with the US Air Force,
US Army,
US Navy.
The US Marines gave the best sign on bonus to him because he chose a job in there that few are qualified for & difficult too.
Has strong computer hardware & software skills like my IT wife.
Kid is alright, likes Corvettes too....took him for joy rides & loved riding fast with me.
Maybe I rubbed off on him some, developed a love for adventure & never a boring day.

Kids today hardly stand a chance coming from middle class( 250K & lower yearly) & low income.
All want to change the world for the better.
Just we have poor & corrupt leaders everywhere.
Plan is coming from them leaders...........No one is to prevail ever again. Just the "ELITE & CHOSEN FEW".

His 4 year college will be paid for after his service with the US Marines. If he decides to go that route in life.

He watched his older friends in Peoria, IL graduate college for 4 to 6 years. Came home because they are unable to get a job.
Local McDonalds' have waiting lines to hire for 6 months or longer.
Even at the local shopping malls.......can not be employed anytime soon.
And this is Peoria, IL.................best p[lace to live in Illinois current.........Caterpillar workers & $100K + salaried managers & CEO's living nearby getting paid at least $5 million per year.
Yeah.....

System is broken.
Done intentional.

Brian R.
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