Should government make a profit off student loan debt?

[Mai72]

http://nypost.com/2014/05/25/end-joke-of-non-profit-u/

A fact that I found interesting.

According to the Congressional Budget Office, the feds will turn a $127 billion profit off student loans over the next 10 years.

If you want people to successfully contribute to society the last thing you should be doing is making money off them. Am I correct or wrong? It seems that were just making it harder for people to become productive members of society. We need people to spend money, but how is that possible when you're drowning in student debt?

For the government to make money off college students is crazy. I believe that we're the only country that does this. The government and the bankers are making serious money from students who didn't know better. Look at the interest that is leveled against college graduates. When they begin paying off their debt the only thing that they are paying is interest. For the next 10 years that $30,000 loan hasn't budged because they're paying on the interest.

College tuition has gone up over 500% since 1985. Yet, the average college dean makes over $200k. Maybe it's higher. The dean from Rutgers University made nearly $500k last year! They fill the classes with adjuncts and they expect students to pay full price.

Why are people putting up with this madness?

 

[Mai72]

I also just read a few horror stories from 60+ year old people who have co-signed for their children. It seems that the new norm is to garnish their social security checks.

I don't think people know what they are getting into when they co-sign for their children.

http://www.investopedia.com/articles/personal-finance/052214/seniors-you-cosign-student-loan.asp

 

[highland145]

LOLOL...the government should NOT be involved in student loan debt.

 

[Mai72]

LOLOL...the government should NOT be involved in student loan debt.

I agree 100%. But they are and it's not good. I see a possible train wreck coming.

 

[fskimospy]

LOLOL...the government should NOT be involved in student loan debt.

The government should definitely be involved in student loan debt. Doing it otherwise would make no sense.

That being said, they shouldn't be profiting off it.

 

[fskimospy]

I agree 100%. But they are and it's not good. I see a possible train wreck coming.

If you think the government shouldn't be involved in student loans that basically means you believe there should be no student loans.

 

[Mai72]

If you think the government shouldn't be involved in student loans that basically means you believe there should be no student loans.

If they are going to be involved then that's fine. I still don't believe that they should be turning huge profits off students.

 

[Strk]

If you think the government shouldn't be involved in student loans that basically means you believe there should be no student loans.

I don't have an issue with the government being involved since it's nearly impossible to get rid of the student loan other than paying it off.

 

[highland145]

The government should definitely be involved in student loan debt. Doing it otherwise would make no sense.

That being said, they shouldn't be profiting off it.

What was done before the govt decided everyone needed a degree?


lol, bolded.

 

[fskimospy]

What was done before the govt decided everyone needed a degree?

lol, bolded.

A lot fewer people in America went to college. If you want to return to that and have America's workforce become much less competitive I guess that's your business. If you're going to try to argue that the presence of student loans is responsible for the increase in tuition prices, I would suggest you consult the research on the topic first.

And again, if you think the government shouldn't be involved in student loans that just means you think there shouldn't be student loans.

 

[Zorkorist]

So educate us, Eskimo.

Why is education so expensive?

-John

 

[highland145]

What was done before politicians decided everyone needed a degree?


lol, bolded.

College cost $$. People had to pay for it or repay friends/family.

Now, get a loan. Basket weaving, cool, your government will guarantee it.

Nice.:\

 

[Zorkorist]

I mean we used to have 1 room school houses.

-John

 

[Zorkorist]

You gonna teach me the secret of life?! Wink, wink, nudge nudge?!

-John

 

[highland145]

A lot fewer people in America went to college. If you want to return to that and have America's workforce become much less competitive I guess that's your business. If you're going to try to argue that the presence of student loans is responsible for the increase in tuition prices, I would suggest you consult the research on the topic first.

And again, if you think the government shouldn't be involved in student loans that just means you think there shouldn't be student loans.

How about you show me the increase in tuition with the increase of the available of funds correlation. $26K for 1 year at Clemson....unjustifiable.

have America's workforce become much less competitive I guess that's your business

Aren't we there already?

PRTM, I'm there.

 

[Mai72]

So educate us, Eskimo.

Why is education so expensive?

-John

Education has gone up over 500% since 1985.

http://www.bostonmagazine.com/news/article/2014/04/29/adjunct-professors-boston/5/

 

[fskimospy]

So educate us, Eskimo.

Why is education so expensive?

-John

There are zillions of reasons. One of the biggest ones is that there has been a massive decline in government spending on higher education funding. The empirical evidence for the effect of government spending on tuition prices is very mixed, at best.

 

[Zorkorist]

Eskimo says he knows why.

-John

 

[Engineer]

What was done before the govt decided everyone needed a degree?


lol, bolded.

People were hired in manufacturing in good paying jobs. Something happened from that time to now....any guesses?

 

[fskimospy]

How about you show me the increase in tuition with the increase of the available of funds correlation. $26K for 1 year at Clemson....unjustifiable.

Why don't you go check the research on it? You'll find lots of people have looked into it. Some have found a connection, some have found no connection. At best you would conclude that there is not enough evidence to support a conclusion that availability of aid has insufficient evidence to support a conclusion that it increases prices.

Aren't we there already?

PRTM, I'm there.

No, of course not. Regardless, even if you thought we were it would hardly make sense to make things worse.

 

[jpeyton]

If the government is making $127 billion, I wonder how much the university system is making

I wish I could charge $300 for a textbook.

 

[Mai72]

People were hired in manufacturing in good paying jobs. Something happened from that time to now....any guesses?

Those jobs no longer exist. My brother works for the post office and makes nearly $30 an hour. I've sometimes wished that I went this route. He has zero student debt. Once you get the hang of your route it's easy to do. He gets a full benefits package with a matching 401k.

Those type of jobs used to exist. They don't anymore. Retail and fast food shops have taken their place. I know people who are still bartenders and waitresses because they can't find professional work.

Are they at fault or is it the system? Are Americans having difficulty in this new economy because most lack the math and science skills that employers now deem important?

 

[Zorkorist]

If the government is making $127 billion, I wonder how much the university system is making

I wish I could charge $300 for a textbook.

The students seem to be a captive audience, eh?

Someone is profiting, and it isn't the students.

-John

 

[Zorkorist]

Those jobs no longer exist. My brother works for the post office and makes nearly $30 an hour. I've sometimes wished that I went this route. He has zero student debt. Once you get the hang of your route it's easy to do. He gets a full benefits package with a matching 401k.

Those type of jobs used to exist. They don't anymore. Retail and fast food shops have taken their place. I know people who are still bartenders and waitresses because they can't find professional work.

Are they at fault or is it the system? Are Americans having difficulty in this new economy because most lack the math and science skills that employers now deem important?

Those jobs are gone today. Beyond Government, who still retires people after 20 years, most of us have to actually be competitive with world economies.

-John

 

[Zorkorist]

But when you get the Government regulating shit, and communizing shit, and socializing shit, then those days are gone forever.

-John