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Student Loan Fight on Capitol Hill: Should Government Control Student Loans?

Fef 2012/06/27 18:17:23
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Politics has a way of keeping politicians in office and the public never satisfied. The government has taken over much of the student loan business in America, which means that politicians will squabble over the future of student loans. During an election year, this will create a lot of pandering and demagoguery instead of real solutions.

Political pundits speculate that President Obama may forgive some student loans as a desperate election-year ploy. Rush Limbaugh, the Conservative talk radio host, said that Obama may just suggest forgiving loans to "buy the votes" of many young and indebted college graduates.

WashingontTimes.com reports:
As lawmakers move toward a last-minute deal to keep student-loan interest rates from doubling on Saturday, the nation's universities can do little except sit, wait and hope for the best.

Congressional leaders reportedly are nearing a deal to keep the interest rate for subsidized student loans at 3.4 percent. Both Republicans and Democrats want to prevent the rate from rising, but the political wrangling has centered on how to offset the roughly $6 billion in losses to the federal treasury if the rates remain low.

Read More: http://www.washingtontimes.com/news/2012/jun/26/st...

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  • Quazimoto 2012/07/06 13:04:17
    Free Market
    Quazimoto
    The Government can't even control it's own finances.
  • MOMMA THOMAS 2012/06/28 20:21:50
    Government control
    MOMMA THOMAS
    HOW ARE THE FINANCE CHARGES ON YOUR OWN FREE MARKET LOANS? .....THE FREE MARKET WOULD GUARANTEE ONLY THE WEALTHIEST OF KIDS WOULD CONTROL OUR JOB MARKET (WHATEVER IS GOING TO BE LEFT OF IT.). ...SO THE NATIONS OVERSEAS WHERE EDUCATION MEANS NATIONAL/INTERNATIONAL STRENGTH ...WILL DOMINATE THE U.S.
  • Boo 2012/06/28 19:01:53
    Government control
    Boo
    If the government is insuring these loans, they should be able to regulate them. Keeping the interest rates down is good for the government as well as students. Less defaults will occur if rates are kept low.
  • rknothead 2012/06/28 11:10:56
    Free Market
    rknothead
    If it involves any govt control it will be flawed and complicated and cost tax payers money.
  • MW121 2012/06/28 09:52:35
    Free Market
    MW121
    Nothing this government gets involved in is a good thing.. Let the free market run its course...
  • sbtbill MW121 2012/06/29 17:51:25
    sbtbill
    The free market always results in higher prices and poorer quality.
  • Christian 2012/06/28 03:24:54
    Free Market
    Christian
    We are a free market society.
  • joshua ben-ami 2012/06/28 01:23:13
    Government control
    joshua ben-ami
    +1
    If the government guaranteed them they can control them
  • redhorse29 2012/06/28 00:20:18
    Government control
    redhorse29
    If our tax dollars are the basis for the loans yes. Private sector loans are regulated by the government. Guess the government already has control.
  • chgo 2012/06/27 23:54:49
    Government control
    chgo
    neither the U.S. government nor the "free market" should be making profits off people's right to a college education.
  • Freedom... chgo 2012/06/28 00:53:59
    FreedomFighter
    I have to disagree. With higher education comes the need for educated people to teach the students. The more educated are the (Generally) more you get paid. So with people who can actually teach the field a college student wants to learn in get paid a lot. Then you must manage the course, the building, staff, cleaning, all that fun stuff. In other words it cost money to teach someone, and a lot of money to teach at the college level. Our government can't even think of being able to pay for that. It is simply ludicris (Unless there is some amazing plan I have missed). So in order to be taught you need to pay all the people to teach you, and run that institution. Now, as we all know that is a hefty sum of money, and it keeps growing (Mainly do to inflation, and Government funding. I can explain the latter part if you wish). What I am trying to say is, that if you want everyone to get educated I can see two routes. Government take over of the college system, and start paying them next to nothing, which in turn will cause a decline in professors, or we can have the government pay for it all, then go more into debt, collapse on itself, and then cause an economic catashtrophe. Honestly, I dislike both of those ideas, the most logical solution I see is get a loan, pay it off fast, ge...
    I have to disagree. With higher education comes the need for educated people to teach the students. The more educated are the (Generally) more you get paid. So with people who can actually teach the field a college student wants to learn in get paid a lot. Then you must manage the course, the building, staff, cleaning, all that fun stuff. In other words it cost money to teach someone, and a lot of money to teach at the college level. Our government can't even think of being able to pay for that. It is simply ludicris (Unless there is some amazing plan I have missed). So in order to be taught you need to pay all the people to teach you, and run that institution. Now, as we all know that is a hefty sum of money, and it keeps growing (Mainly do to inflation, and Government funding. I can explain the latter part if you wish). What I am trying to say is, that if you want everyone to get educated I can see two routes. Government take over of the college system, and start paying them next to nothing, which in turn will cause a decline in professors, or we can have the government pay for it all, then go more into debt, collapse on itself, and then cause an economic catashtrophe. Honestly, I dislike both of those ideas, the most logical solution I see is get a loan, pay it off fast, get little interest, and all is good. No one is simply going to give you money just cause in this world either. Humans are not that kind. Plus if people default on loans, you don't lose money if you had multiple loans going out with interest on them.
    (more)
  • chgo Freedom... 2012/06/28 01:15:47
    chgo
    "Our government can't even think of being able to pay for that."

    When my grandmother was college, the total cost of attendance for one year was less than how much a student today pays for just a class textbook. Now, the average total cost of attendance in 2010–11 for first-time, full-time students living on campus and paying in-state tuition was $20,100 at public 4-year institutions and $39,800 at private nonprofit 4-year institutions.


    "(Unless there is some amazing plan I have missed)."

    look at some regions in Canada, France, Austrailia, Norway, Sweden, etc. and then get back to me.

    you must think your immense ignorance is just as good as actually knowing what you're talking about.

    and "ludicris"? lol
  • sbtbill chgo 2012/06/29 17:55:25
    sbtbill
    +1
    When I was in college it was about that cheap, too. Of course that was all government schools and government aid. The the big banks got involved (free market) and the prices skyrockets. Privatization always means higher prices and poorer service.

    Do you really think schools are as good as they were 20 years ago let alone 40? The problem is home schooling and government budget cuts. You get what you pay for.
  • Boo chgo 2012/06/28 19:25:54
    Boo
    We are not guaranteed the right to a free college education! Grants are available to those who qualify, but they do not cover the full cost of college education. Banks are entitled to make interest on student loans, just like any other loan; however, since they are guaranteed by the government, they have the right to regulate the loans. If banks are allowed to gouge students (as they obviously have in the past) the government is more likely to have to pay more for defaults in payment. Therefore, it is in the best interest of the government, as well as the students, to keep the rates low.
  • Roger47 2012/06/27 23:43:48
    Government control
    Roger47
    +1
    We need education to be affordable for everyone. Few can afford the high cost of college without borrowing. If the government keeps rates low, young people from poor families will be more likely to go to college. That is a good thing, right?
  • Freedom... Roger47 2012/06/28 00:56:23
    FreedomFighter
    No. It is not. Professors need to be paid too. They are highly educated, and if they are not being paid for what they are worth, why be one? College is a business, not a right. It is possible for ANYONE to go there if you did well enough in school. That, or if you played your cards correctly right after highschool, and just saved up for it. Where there is a will, there is a way.
  • Boo Freedom... 2012/06/28 19:46:48
    Boo
    Professors are paid. The lowest paid professors make about twice what the average middle income person does! And for decades now, college professors have done more pontificating about politics and social opinion than "teaching!" The dumbing down of America began in college classrooms by the liberal influence on future teachers. When they prove they can actually teach they will deserve a raise, but judging from the results we've had, they should get a real job!
  • Freedom... Boo 2012/06/29 13:13:50
    FreedomFighter
    +1
    Point taken, but you can not generalize them. I came from an engineering college, and I don't recall any of my teachers talking about politics. I do know that it happens a lot, but don't shove them all in one boat.
  • Boo Freedom... 2012/07/02 19:36:34
    Boo
    I don't know how old you are from your profile, but from my personal experience in college in the '70s it was rampant. My older siblings attended 2 universities in southeast in the mid to late 60s, one of which was an engineering school, and both of them received a thorough liberal brainwashing! My sister became a "teacher" and still brags that she is "too liberal for even some of her liberal friends!"

    It may have started changing again since then, but in the 60s and 70s it was very wide spread (and behind the campus unrest during that period also). Remember Students for a Democratic Society (SDS), the Weathermen--later the Weather Underground--Abby Hoffman, Bernadine Dorn, Bill Ayers (a close friend of our current President), their dIsruption of the Democratic Convention in Chicago, etc.? Our universities were infiltrated and successfully used to bring about political unrest and destruction of our education system. The result has been the current terrible condition our country is in, and the political strife we see today.
  • TerryAgee 2012/06/27 23:34:51
    Government control
    TerryAgee
    The Subsidized Stafford Loan and the Perkins Loan are the best for student loans.
  • snipe 2012/06/27 23:23:52
    Free Market
    snipe
    +2
    Outstanding Student loan debt is at about $1 trillion, will it be the next bubble to burst?
  • ed 2012/06/27 23:07:40
    Free Market
    ed
    I think most of us know the government has a very hard time controlling money period.
  • Mark5610 2012/06/27 22:52:36
    Free Market
    Mark5610
    +1
    The government should stay out of the free market. You’ve seen what they have done to the housing market. This student loan thing will be about votes. Watch for the pResident to “forgive” all student loans in October. And who pays for that? The middle class will of course.
  • bob 2012/06/27 22:36:09
    Government control
    bob
    I check Free Market! The Government has failed at everything they have tried to run it runs up the Cost and allows fraud and Corruption. The Free market is the Only way.
  • Radlad 2012/06/27 22:24:16
    Free Market
    Radlad
    Why is it that liberals believe that the government should control everything? Do they truly believe that the government can be trusted with all that control? It can't even take care of the things it is suppose to do.......
  • Lanikai 2012/06/27 21:47:26
    Free Market
    Lanikai
    No, the government should not make student loans at all and should not give grants for school either.


    Hey, congress-how about you spend the tax money in a responsible way????? Loads of folks NEVER pay back the government loans, so CUT OFF the government school loans. Stop GIVING people money to get stupid degrees. NO federal tax dollars for college, PERIOD.
  • Lanikai Lanikai 2012/06/27 21:48:21
    Lanikai
    LET the student debt spike, they should not have signed up for loans they weren't going to want to repay.
  • Pm 2012/06/27 21:42:37
    Free Market
    Pm
    +2
    WHy is the liberal answer to every problem RAISE TAXES?
    "Republicans have suggested increasing the amount that federal workers contribute to their pensions, among other ideas. Democratic solutions have included raising some taxes on wealthy Americans."
  • Lanikai Pm 2012/06/27 21:48:44
    Lanikai
    +1
    The DEM way-tax and spend and spend and spend.
  • sbtbill 2012/06/27 21:36:44
    Government control
    sbtbill
    The free market rips people off the government doesn't, at least in this case. Also since the government takes the risks the government should get any profit.

    Plus student loans can't be discharged in bankruptcy so the banks and private lenders should be banned from issuing them. To much chance for lender fraud.
  • Lefty 2012/06/27 21:29:16
    Government control
    Lefty
    Call it socialism if you must, but student loans should be reasonable without greedy bankers drooling!
  • Lester Lefty 2012/06/27 23:00:06
    Lester
    Last year 1.7 million Chinese college graduates couldn't find jobs. If we don't make college affordable for Americans, we all know where the jobs will be going.
  • Lady Whitewolf 2012/06/27 21:04:35
    Government control
    Lady Whitewolf
    +1
    How long before they price a college edcation OUT OF EVERYONES REACH? If they want people to have that kind of education, do something to help take the load off.
  • Næthan Æterna 2012/06/27 20:49:28
    Free Market
    Næthan Æterna
    +1
    Just the words "Government control" gives me goosebumps. The Student Loan bubble is over $1 Trillion dollars and is about to burst, so says Dr. Ron Paul amongst other credible sources. If another Barney Frank gets his hands on Student Loans, I can guarantee another dip in our Economy.

    It's time we hang these Politicians in Washington D.C. out to dry.
  • Næthan ... Næthan ... 2012/06/27 20:58:09
    Næthan Æterna
    +1
    I'd just like to add though: There is a big problem with the cost of going to a University. SOMETHING needs to happen, any ideas?
  • Lady Wh... Næthan ... 2012/06/27 21:05:05
    Lady Whitewolf
    agreed.
  • sbtbill Næthan ... 2012/06/27 21:38:10
    sbtbill
    It's the banks and private lenders that made them a bubble and are likely to cause the economy to go down. Privatization always costs more and makes things worse.
  • Lanikai Næthan ... 2012/06/27 21:49:32
    Lanikai
    Well, the people who signed up for these loans, knew the rates could go up, so, sorry about their luck-PAY YOUR LOANS kids, pay your loans.
  • Næthan ... Lanikai 2012/06/27 22:04:11
    Næthan Æterna
    I hear ya, I have minimal debt, that I am working off. People do need to put more thought into what they're getting themselves into before signing on the dotted line.
  • Lanikai Næthan ... 2012/06/27 22:56:28
    Lanikai
    Yeah, I watched a kid on Judge Judy tell her HIS pell grant money was for his to have fun, NOT pay the rent to the landlord, and he was taking a degree in guitar playing and mostly NOT passing-but he was getting a mostly free ride out of the deal.

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