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[AcertainLiz]

This message was self-deleted by its author (AcertainLiz) on Fri May 2, 2014, 09:55 PM. When the original post in a discussion thread is self-deleted, the entire discussion thread is automatically locked so new replies cannot be posted.

[former9thward]

1. Cut off student loans for any school where tuition raises more than stated inflation.

Tuition goes up every year. They say there is little or no inflation. Fine, stop loans at schools going higher than inflation and you will see tuition increases stopped.

[Seeking Serenity]

3. I agree with this.

Everybody, including Sen. Warren, is all over the banks and whatnot about student loan debt, but NO ONE is questioning THE SOURCE of that crippling debt, that is, the higher ed establishment.

If college wasn't so outrageously expensive, students wouldn't need so many loans. And in my opinion, far too many colleges are WAY top heavy with administration, with a vice-chancellor for this and a vice-chancellor for that and a vice-chancellor for "Running up the stairs, two at a time, flinging the door open and saying, 'Ha ha, caught you, Mildred.'"

[Arugula Latte]

5. We need to restore more state funding of universities, as well.

[Boreal]

77. There was a website

that I found a year or two ago, that I can't find right now, that listed salaries from universities all over the country. I was floored when I saw the figures. They were obscene. In my own state, Michigan, at UofM, the top were in medical school at over 800K per year. Business school was up there, too. He's some other site with a little info:

Here are the ten highest-paid professors at Michigan Law for 2012 to 2013:

1. Evan Caminker – $470,233
2. Don Herzog – $302,000
3. William Ian Miller – $302,000
4. James E. Krier – $300,000
5. Margaret Jane Radin – $298,500
6. Catharine A. MacKinnon – $294,000
7. James R. Hines Jr. – $288,500
8. Bruce W. Frier – $285,000
9. Richard D. Friedman – $283,500
10. Reuven S. Avi-Yonah – $280,500

http://abovethelaw.com/2013/05/how-much-does-your-law-professor-make-michigan-law-edition/

This makes me want to throw up! It doesn't even take into account the fantastic benefits and huge amounts of time off. WTF? Kids are starting their lives with debt they won't be able to pay off until they're middle aged so these people can live large and drive luxury cars? It's outrageous. Nobody needs that much money to live comfortably.

It seems like everyone wants to be in the 1% and if it's on the backs of students, that's okay

[exboyfil]

79. While I think we are educating too many lawyers

In all fairness the salaries of professors in professional schools like Law and Medicine do have to be that amount. Any less and they cannot attract professors of teaching caliber. You are taking about one of the best law schools in the country. Chances are these individuals would be in low seven figures in the private sector (same applies to doctors). Lawyers who teach undergraduates at universities have decidedly less lofty salaries. For example a family friend teaches at a regional university, and she makes $70K/yr. She could make more in private practice. My old college advisor who is a nationally recognized expert in biomechanics makes about $20K/yr. less than me.

Of course the football coach at our flagship university makes $3.7M but that entire salary comes from the revenue associated with the football program (which also feeds a bunch of other sports programs).

[woolldog]

46. Something that seems to have contributed to the skyrocketing cost of education

is the availability of student loans. Cheap money has driven borrowing and that's allowed the costs to rise. It's a catch 22.

[former9thward]

48. Very true.

Colleges up their tuition and other costs because they can. They know students can get loans to pay for it no matter what the cost. The students don't have the maturity or financial sense to realize how this is going to affect them and their standard of living for decades.

[joeglow3]

52. We also live in a society where you NEED a college degree

This has flooded the demand side of the equation, while the supply side (number of colleges/spots) has not kept up.

[magical thyme]

92. student loans are not cheap money. Mine are nearly 7%.

Whereas my sister's, who went to law school a couple decades ago when school was a *lot* cheaper, were something like 1.5%.

[Xithras]

63. Colleges often have little control over tuition. Republicans would love your suggestion

...because it would be a gateway to shutting down public universities and colleges entirely.

There are three primary factors driving tuition increases in public colleges and universities:

1. State governments are slashing financial support for the institutions, forcing them to rely more on tuition to keep the lights on.
2. Rising operational costs. That includes everything from rising healthcare costs, to the increasing costs of materials for building maintenance and technology infrastructure that didn't exist 30 years ago. Those costs must be recouped through rising tuition.
3. As wages stagnate, alumni donations have dropped considerably for most colleges and universities. Those donations once allowed tuition to be kept down, but they must rise as the amounts decline.

Your suggestion would give the 'Thugs an easy way to kill public education entirely. Cut state contributions to public schools to force a tuition increase beyond inflation rates. Watch the students vanish as loans dry up. Watch the schools implode as the lost tuition from those vanished students forces each and every one of them into bankruptcy, as few states give their public schools enough money to actually operate. Voila, no more public colleges. The Republicans will be downright giddy.

[former9thward]

66. Fat cat university admins and profs love your post.

When I was in law school profs were being paid 175k a year to teach 3-6 hours a week working off notes that had been prepared years before. I live within a stones throw of the biggest university in the U.S. They are building luxury student condos all over the place -- we wouldn't want to deny them any luxury now would we? People always say "state aid is being slashed" without ever providing any numbers.

You can try and shut down discussion by shouting "republicans love you" bs. That may work with newbies but not me.

[Xithras]

68. I was a prof for many years.

While a handful of senior tenured professors teaching a handful of disciplines may make that kind of money, the overwhelming majority of college professors can only dream about having paychecks like those. Hell, I quit teaching and got a "real job" myself because I couldn't financially make it work anymore. Excessive pay arguments using cherry picked wages don't hold up under scrutiny. The increased costs imposed by the small number of people making that kind of money is a tiny part of a colleges overall budget, and doesn't significantly impact tuition costs.

And, out of curiosity, how much do you think a PhD SHOULD make? What is a "fair wage" for people responsible for educating the next generation of doctors, engineers, and even lawyers who will be running our nation in the years to come? Do you think their unions should be stripped of ALL powers to negotiate wages?

Oh, and student housing is typically funded through loans that are repaid by student housing fees, and not by a college or universities general budget. While colleges do occasionally need to fully fund freshman housing costs, it's a rare and infrequent event.


FWIW, I was attacking your idea, not you. Your idea WOULD provide Republicans with a simple way to shut down the public universities. They wouldn't have to financially gut the schools to shut them down, they'd only have to cut the budgets enough to force a tuition increase exceeding inflation. Your plan would do the rest of the work for them. I'm not going to apologize for pointing out a very real flaw in your suggestion.

[Vattel]

94. Thanks for the facts and common sense.

[dsc]

99. that would eliminate pretty much every state school from the program

since during any recession that will wind up happening since they are dependent upon government subsidy to keep tuition low.

[former9thward]

103. They are not keeping tuition low.

Other posters have told me state aid has been "slashed" -- without giving any figures. Now you say they use it to keep tuition "low". Which is it? Are they getting the money or having it "slashed"? Tuition would stop going beyond the rate of inflation so no school would be cut off.

[dsc]

104. they are low in comparison to private schools

but they are not low in the sense of being low.

[mike_c]

2. allow student loans to be discharged in bankruptcy as a beginning....

Firewall social safety nets and most pensions against garnishment for student loan repayment, too.

[AcertainLiz]

7. Bankruptcy?

Why that?

[mike_c]

12. why not?

That's one of the current problems that needs to be corrected in order to fix the student debt situation, i.e. make student loans dischargable along with other forms of debt. It's ironic that people can discharge other unsecured debts and sometimes do, when they haven't the means to pay them, yet they cannot discharge their (often much larger) student loans, which makes no sense. After all, if the bankruptcy judge agrees that someone can't reasonably repay a few thousand dollars in consumer debt, how might they be expected to repay tens of thousands in student loan debt? Nonetheless, that is the present expectation, despite making no sense at all and simply ruining many peoples' lives.

[B2G]

15. Yes

You refer to yourself as a 'dumb kid'. If you're that young, you will ruin your credit for the forseeable future.

Perhaps some details about your situation would help.

[B2G]

45. Like how much do you owe

is the loan subsidized or unsubsidized, monthly income, etc. There are income based repayment plans that would allow you to reduce your monthly payment

[B2G]

97. Well when you do 'went'

You might consider taking an English class.

[AcertainLiz]

111. Are you a troll?

Just wondering? Because what I said wasn't even incorrect, it's just a matter of dialect: http://wiki.answers.com/Q/Why_would_it_be_incorrect_to_say_when_I_haven%27t_went_instead_of_when_I_haven%27t_gone

Regardless, I think I'm going to ignore you now due to your rudeness. Ta-ta

[FSogol]

47. There are different types of bankrupcy. In a chap 13, you'd only ruin your credit for 5-8 years.

Better to get it over with in some cases than drag it out for 15 years and then declare bankruptcy. Of course, student loans aren't discharged in a bankruptcy.

[YarnAddict]

55. Yes, bankruptcy is very bad

Especially for young people, who will be wanting to purchase a car or a home. You would be paying much more in interest on credit cards, or loans, if you can even get one. Any potential employer who does a credit check would know, and probably pass you over in favor of someone who doesn't have a bankruptcy on their recordd.

There are better ways to deal with debt.

[AcertainLiz]

74. What are the better ways in your view?

[YarnAddict]

89. Better ways

have been pointed out by some very wise people in other responses to your OP. Community college, living at home, etc.

Just from an ethical point of view, bills need to be paid. If someone lent you money in good faith, trusting you to repay, not repaying says something about the borrower's character that isn't flattering.

[AcertainLiz]

116. But community college is still expensive and living at home is often a no-no

Just saying.

[Orrex]

118. DU is full of people eager to advise after the fact

Such bootstrap suggestions might work fine for people who have not yet been indentured to Sallie Mae, if it prevents them from falling into the trap in the first place.

What might be done for those potentially facing a lifetime of inescapable debt?

[XRubicon]

16. I agree with Mike C

The student debt problem is the same as the housing bubble. House prices went through the roof because there was so much free money floating around that anyone could borrow.

Students can easily borrow all the money they want now and lenders have virtually no risk. Since there is lots of money available prices go up.

I think lots of schools charge based on the "how much can you borrow" model of pricing like housing was in 2006.


I think if bankruptcy was an option, lenders would take a look at the student and the amount loaned a little closer.

Colleges should be held accountable for low graduation rates too, maybe refund part of the total costs. Because now, they have no skin in the game. The school my daughter attended had a 30% graduation rate. The school took tons of money from freshmen they knew would never graduate.

[AcertainLiz]

21. Well, how would colleges be held accountable for such a thing?

What would be done?

[XRubicon]

28. Make the school cosign loans for a percentage of the loan

I'll bet graduation rates would rise. Fewer admissions, more competition between schools means prices drop.

I know this seems cruel but I often wonder where the 70% of freshmen who did not graduate wound up and how much debt they have. Actually, I do remember one of my daughter's friends, living back home with no degree and loans to pay.

[AcertainLiz]

33. Well if 70 percent who don't graduate never get the chance to go

What else would they be able to do? They'd have no options then, no?

[Art_from_Ark]

43. I never graduated from the first college I attended

Or the second one, for that matter.
The third time was the charm, though

So maybe some of those students who aren't graduating from College A are transferring to College B.

[AcertainLiz]

44. Oh, okay

I thought this person meant these people should never go to college, which seems counterproductive.

[YarnAddict]

56. College isn't for everyone.

No one should go, unless they have a concrete plan for their future, and a sincere commitment to completing a degree.

It's different now than it was a number of years ago, when a student could work his/her way through school. Very few can do that now, and unless parents can pay, or they get lots of scholarships, it just isn't worthwhile for those who are undecided, or even incapable.

Kids who aren't mature enough to make these decisions, or commit to finishing, would be far better off waiting a few years, working for awhile, and thinking about what they really want to do with the rest of their lives.

[AcertainLiz]

75. But isn't college necessary to get a good job nowadays?

Not going is simply a road to destitution, no?

[YarnAddict]

90. No

Maybe I'm jaded, but I know way too many young college grads who are working low-paying jobs. Bill Gates doesn't have a degree. Neither did many other entrepreneurs.

[AcertainLiz]

114. So you envision a society where most people are Bill Gates style entrepreneurs?

[joeglow3]

54. Problem is colleges have fucked themselves

I agree with your analysis. Sadly, colleges have dumped this money into needless infrastructure (a big one being student amenities) that will now need big money to maintain. Thus, even the other items returned to normalcy, colleges have locked in higher expenses for themselves for decades to come.

[exboyfil]

78. Universities are really proud of their Recreation Centers

Every student at my daughter's school has to pay $36/mo. to support it. It is the biggest component of the general mandatory fees. She also has to spend about $10/mo. for the athletic program in her fees. Another $24/mo. for Health services even though she is under my insurance. Finally $75/mo. for technology (which makes sense since she is an engineer).

Since she is an engineer she will also have to pay $2,200/yr more in tuition than other majors.

[joeglow3]

80. That is interesting that she has to pay more

They explored that possibility here, but turned it down. The argument was that it was a good field and it was not fair to make it more expensive, thereby creating an additional barrier for the poor.

[exboyfil]

86. I frankly think it is a ridiculous

disincentive to go into engineering. I don't talk about it much because it would sound like whining (my daughter and I have her education covered). One of the original stated motivations was because engineers can earn more. That statement was quickly walked back. The justification is now that it costs more to educate engineers. I think if you figure in the outside money that engineering departments bring in, that is something of a specious argument as well. A 20% premium of tuition and fees sure can be felt. It has not impacted demand much though. Our engineering department is probably growing too fast. Still not very many women in mechanical engineering though. My daughter got $4,500/yr for the first year in merit aid. To put this in perspective she got one A- in high school (Honors Chemistry). She did get two A-s (one in a freshman and one in a sophomore/junior engineering class at the school she will be attending next year as freshman). She will have all of her math, physics, chemistry, English, social studies, and humanities done before she even hits the campus. She is active in orchestra and swept state journalism competitions. With all that she received less than half of her tuition in merit aid. It is really tough for kids these days.

[bluestateguy]

102. They use the amenities to attract students

They are impressive draws on campus tours.

This is how you draw students to your school who are looking for a 4-8 year cruise ship experience, with education being more of an afterthought.

[mike_c]

105. ding ding ding....

That is exactly right. Most universities now employ significant numbers of administrators and staff whose primary responsibility is "recruitment." If you're wondering why colleges have an interest in recruitment, the answer is the obvious one that's tied to the OP-- money. Regardless of the funding model, whether private or public, operating budgets and future endowments are the result of per capita tuition and fees. Head count = $$. And many, if not most administrators now operate from the corporate mindset that views students as revenue sources, and students who leave as lost revenue.

[treestar]

98. Yes, as it used to be

That was changed to make it harder to do. It doesn't make sense, if you can't pay, you can't pay. The idea was you'd pay when you got a job.

[Arugula Latte]

4. Cap the interest rates, for one thing.

Why can you get a mortgage for under 4 percent but student loans are 6 or 7 percent or more?

[oldhippie]

38. I can't believe ....

... anyone with even a smidgeon of education could even ask that question.

[Yo_Mama]

40. Because a mortgage is a secured loan, and student loans are not

If a person can't pay the mortgage, eventually the creditor gets the property, which limits losses. Secured credit is cheaper than unsecured credit.

[haele]

6. Practical solution is to try and pay the debt that's gathering interest while still in school.

And try not to pay only the minimum payments, which will have you paying for decades. If you have extra money at the end of a month, put it on the principle.
There are two types of student debt; the one that starts gathering interest 6 months after you graduate, and the one that starts gathering interest 30 days after the money disburses. Take care of the latter while you're still in school if you can. After you graduate, there's no real difference other than the interest rate - but don't take out another loan to pay both off, unless you can get a really, really low rate. YMMV, but most student loans are less expensive than a signature loan, and only a home equity line might have a lower rate than what you're paying now.

I'm going to be in the same boat soon; luckily my employer has a tuition assistance program that is allowing me to at least pay half of each semester off, so I'm only $3K in the hole for the $7K GreatWestern has "lent" me up to this point, with another year to go before I get my degree. The subsidized Perkins loan is sitting at around $9K, but the interest rate is half that of GreatWestern, and it won't start collecting interest for another year and a half.
I'm also still eligible for grants and scholarships, which I have taken whenever I can. My loans are only for the undergraduate classes, which end up costing around $2K for 4 units classes ($500 per semester unit - these are business courses). I didn't take loans out for the Jr. College classes I took before, even though I could have, and that move probably saved me a lot of money right there; instead of ending up ~ $40K in debt for a bachelor's, I should only be around $18K.

And you'll never be lucky enough to combine your loans and be paying the subsidized federal rate instead of the unsubisdized or plus loan rate, unless someone in Congress is kind enough to push for new FASFA program in which graduates who had applied for loans under FASFA and have made enough payments to match the funds lent can then combine all existing outstanding student loans intoto a new loan at the lowest current FASFA rate.
Considering that the lenders have usually already gotten their interest and principle out of most graduates two or three times over while former students are still being struggling under the debt, this can only help the economy.

Call it "Responsible Graduates Student Loan Program" My suggestion that might be able to pass this f'd up Congress is a two-criteria program. 1) You have paid the servicer the equivilent of the money lent you, even though it may have only knocked the principle loan down by 10% and your 10 - 18% interest keeps piling up and 2) you have or are in danger of falling behind because your payments are over 10% of your household income.

If both criteria are met, you fill out an application that FASFA "buys" the loan at face value from all existant student loan servicers, and you pay the government back at 3.75% through a program that pays principle and interest directly into the Treasury.

The banks aren't making as much money (there's a trillion dollars of debt which includes interest out there), but the lenders have at least doubled their initial investment, the graduates get a break, and the government gets interest revenue. Win, Win, Win.

That's my suggestion, but I doubt that will happen.

Good Luck.

Haele

[AcertainLiz]

13. Thanks for all this

I wish something like that could actually pass, but yeah I know it won't. I'm actually joining the military partially to alleviate the debt. It's that desperate these days.

[TBF]

25. When are you going in? nt

[AcertainLiz]

26. Going in college or the military?

[TBF]

30. The military. nt

[AcertainLiz]

31. Oh I see

I havent really decided, but I want to do it soon.

[mstinamotorcity2]

8. I don't know what we are to do about the debt now!!

But for the future maybe college should be based more on your location, even though they use in state and out of state compensation. Make all credits transferable and make it so if a person chooses a community college or city college where they live its Damn near free!!

[JaneyVee]

9. Not having to pay it back unless

You find a job making $50k/yr or more.

[AcertainLiz]

42. I'll be lucky if I ever achieve that...

[YarnAddict]

58. What field are you going into? n/t

[AcertainLiz]

81. I'm going for teaching actually

[YarnAddict]

91. Teaching is a wonderful choice

But you know going into it that is isn't terribly lucrative, so joining the military to minimize the potential debt is a very good idea.

Good luck!

[AcertainLiz]

112. What sucks is what I want to do doesn't make a lot of money :P

[taught_me_patience]

64. You'll easily achieve that if you work hard

and gather the necessary skills to be valuable to your company. Moving to a large city also helps too. It's surprising how fast salaries can rise. When I started working, I made 24k/yr for a job that averaged 60 hrs/week and ten years later, I was making over 100k.

[YarnAddict]

70. Depends on the field. n/t

[AcertainLiz]

82. It'd be a dream come true if I ever made over 100K

[Travis_0004]

11. I would start with more education.

I've asked people who are in school "Do you know how much debt you have", or "Do you know what your payments will be when you graduate?" and most can not answer the question.

I think every semester, before a loan payment is made to the school on your behalf, you should have to log into NSLDS. There a screen pops up saying, "you are borrowing 5k this semester for loans", you click yes. Next screen "you currently owe 25,000 in loans". You click ok". Next screen "if you were to graduate now your payment on these loans will be aprox. xxxx per month". And you click ok a 3rd time.

Some (probably most) would just click through quickly every quarter, but at least they are seeing their numbers out there 2-3 times a year.

Next, I would like to see personal finance offered at the high school level, and strongly encouraged at the college level. I think it would make a great freshman level class, and its relevant to every major. (I found it odd that I graduated with a degree in Finance, and personal Finance wasn't required. In fact, it had to count as a non business elective).

I think more students should look into community college for their first 2 years. I am going to strongly encourage my kids to go this route. Its much cheaper, all the credits transfer to a 4 year college, and if you decided college isn't for you, you can graduate with an associates degree, which is a lot better than half of a 4 year degree.

I would also like to see rates dropped. This was a good change made in August, but it allows rates to go up to 8.25%. Cap that at 4% and it would be better.

I know its not cool, but I think more kids should live with their parents instead of living on their own. I did it, and it sucked at bit for the four, no 5 years I was in school, but it allowed me to graduate with very small student loan debt, and I was on better footing out of school. I know this is not possible for everybody, but its a possibility for a lot of people.

[AcertainLiz]

37. Thanks for this

Do you think a major factor in student debt is the fact that students are being irresponsible and can't handle all these finances?

[Travis_0004]

39. I think a lot of them don't realize how much student loan debt they are taking on.

If you graduate with 100k in debt (or even 50k), its going to be a challenge to pay back unless you get a really good paying job.

A common rule of thumb is to only take out student loan debt equal to your expected pay at your first job. I think its a good rule, but until the economy improves, if somebody with a degree can only get a job at starbucks, then paying back that debt is going to very difficult.

I think if we could attempt to provide more education in school, hopefully they will take on less debt, or at least have a better expectation of their repayment when they graduate. I hear stories of people graduating college (4 year degree) with 200k in debt. Its rare, but I have to wonder what they are thinking, or if they never did the math to realize how much debt they were taking on.

[AcertainLiz]

41. This is all probably true

But regardless, the idea of being a debt slave really scares me...

[YarnAddict]

60. I don't think it's irresponsibility

I think it's more like naivete. Most eighteen year olds don't have enough life experience to look far enough ahead to see what trouble they will be in at 25, 30, 40, if they start out in life with the challenges of massive student loan debts.

[AcertainLiz]

76. Then what should most 18 year olds do? They don't seem to have any other options.

I mean, most I'm sure wouldn't do what I'm doing, which partially is for college in any case.

[YarnAddict]

59. Good solid advice! n/t

[oneofthe99]

17. I know this will ruffle some feathers but

there should be no private universities or colleges.
They should all be state or federally owned and be free for anyone who qualifies to attended.

There should be no sports programs which add cost .

The professors and all staff members should be paid by tax payer money at set rates just like all
federal employees.

[AcertainLiz]

18. Why should there be no private colleges?

[oneofthe99]

19. There should be no cost for higher learning in a civilized society to students

and when I say students I mean any age students , 18 or 80

[AcertainLiz]

20. How would you achieve this though?

[oneofthe99]

22. How do we achieve a standing army of millions?

same way

[AcertainLiz]

23. I don't follow?

Can you explain?

[oneofthe99]

32. Higher learning can be founded just like public education is through a tax based system

There should be no cost to a student you attends , ever

Look at the money wasted and spent on our DOD with tax payer dollars.

[AcertainLiz]

34. Okay, I agree with that :P

[CBGLuthier]

53. Oh I do not think you will ruffle any feathers. You might make some folks laugh

with the silliness of your idea not to mention the complete and blatant unconstitutionality of it.

[YarnAddict]

61. Um, no

Private colleges are a great alternative, and really do make it worthwhile, as they offer lots more in scholarships and financial aid.

And, sports programs generally make money for the schools.

[randys1]

27. All education should be free

Period

Now, to go to college and get a free education, free housing, free food, you would have to qualify with your grades, but if you do

free, everything...it is how our competitors are doing it and they are beating us


you pay for it with taxation of corps and rich people, you see with an educated populace the rich people will get richer

[AcertainLiz]

29. Sounds great

Wonder if we can ever have that in the US?

[randys1]

35. not until all cons die from evolution

[AcertainLiz]

36. lol

[taught_me_patience]

65. A true utopia... just have the rich pay for everything!

Utter dreck. You do know that in European countries where education is free, everybody pays right? The have VAT taxes that approach 25% to pay for this kind of stuff.

[FSogol]

49. Book rec for anyone trying to figure out how to pay for college:

Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships, or Mooching off My Parents Paperback
by Zac Bissonnette

http://www.amazon.com/Debt-Free-Outstanding-Education-Scholarships-Mooching/dp/1591842980

[AcertainLiz]

84. Thanks!

[tabbycat31]

50. Truth be told

If this were any other generation, things would have been done about it. But because it is a generation that does not vote in large numbers, politicians frequently throw them under the bus.

And people who have not attended college recently have NO clue and should just STFU. Yes in the 60s/70s when my parents went to school, it WAS possible to pay for college by waiting tables over the summer. NOT TRUE ANYMORE.

If seniors (who vote all the time) were being ripped off the same way students were, things would be done about it.

[AcertainLiz]

85. Exactly

Things are far more desperate for people in my generation...

[YarnAddict]

51. Not going to be a popular suggestion

or probably even feasible, but lending should be based on the potential ability of the student to repay the loans. In other words, lend to people going into engineering, medicine, computer science, accounting, but not as much (maybe even not at all) to people going into less lucrative fields, or whose plan for the future ends with getting a degree in something totally useless.

Sorry, but it just doesn't make sense to allow a young person to go many thousands of dollars in debt for a degree that will only qualify them for a minimum wage job.

[Lex]

62. A better solution is to make college more affordable.

It used to be more affordable. What happened? That's what we need to fix, not "let's just loan to engineers, etc."

[YarnAddict]

69. Someone upthread had an explanation

So much money was suddenly available to virtually anyone who wanted it that colleges started to jack their costs up. More $$ for lots more administrative positions, and other stuff they wanted. Lenders didn't care--they were making lots of $$ on interest. The students have ended up being the real losers in this deal.

[Lex]

71. That needs to be reigned in. Maybe it will self-adjust as

students have no choice but to default on loans or either fore-go college altogether (we all lose when kids can't afford education though). When students aren't filling up the colleges, the administrative positions will decline.

[YarnAddict]

72. True. n/t

[AcertainLiz]

73. Wouldn't this disallow a lot of people from going to college though?

[YarnAddict]

88. It might, but

college isn't for everyone. Some people are more suited to tech/vocational schools, or apprentice programs. I think we do young people a real disservice when we tell them they HAVE to have a college education.

[AcertainLiz]

117. How would you get a tech/vocational education without college though?

[upaloopa]

57. First write down the principal amount to reflect

the actual inflation rate not the rising tuition cost.
Then extend the pay ack period over 30 years at today's interest rates tied to the Fed rate. With no payoff penalty and no payments due until the person has a steady income that covers necessities first.
Then offer this to everyone who wants to borrow for school.
Also reduce principal in trade for community service.

[AcertainLiz]

87. Why reduce it for community service?

Just curious why you added that?

[taught_me_patience]

67. Adjustable rate interest based on fed funds

and ammortization over 30 years. That would drastically lower payments and, over time, inflation will whittle away the value of the principle.

[TransitJohn]

93. cut off student loans for schools that use student fees to subsidize

multimillion dollar sports programs.

[AcertainLiz]

110. Why would you do this?

[TransitJohn]

113. Because those fees are paid with student loans

Were you serious?

[AcertainLiz]

115. Um...I meant why would you cut off funding for sports programs?

Can you not be rude and actually answer the question? Are you serious?

[TransitJohn]

119. I've already answsered your question.

[AcertainLiz]

120. No you haven't. You just said something irrelevant, and when cornered, you have no response.

Oh well. Try not to be so rude in the future.

[randys1]

95. Oligarchs dont want an educated public for the most part

[AcertainLiz]

109. Even if you need one for a modern economy...

[Taitertots]

96. Tie the interest rate to the Fed funds rate. Lend to the people like they lend to the banksters

The current rate is usurious and makes student loans a lifetime burden for the poor.

[AcertainLiz]

108. Could this actually be done?

[JJChambers]

100. Pay off the loans you've got and discourage others from attending higher education until the system

Is revamped.

[AcertainLiz]

107. Why would you propose this?

[bluestateguy]

101. Limiting the aggregate amount a student can take out

Aggregate limits for an undergraduate degree.

Those limits could be raised for pursuit of a postgraduate degree.

But there should also be an aggregate lifetime limit as well.

It's not popular, but most 18-20 yr. olds are not in a position to make sound long term financial decisions, and they may still be assuming that someday they will be making millions.

[AcertainLiz]

106. Wouldn't this hinder education?