Student Loans Debt

BaltoAlphaPsi · #1 02-12-2009, 04:41 PM

This is in the political section, because there is a petition out that is talking about eliminating student loans, forgiving them... the like. If you're on facebook, here's the group:
http://www.facebook.com/group.php?gid=58440324477

The hope is to help stimulate the economy by helping relieve student loan debt, giving newly graduated students the ability to spend their paychecks in all other sorts of places (stimulating the economy).

Here is the petition:
http://www.thepetitionsite.com/1/Rea...-Student-Loans

Here are some of my personal thoughts:

1) Forgiving student loans completely
2) Forgiving all of your interest, but not your loan it's self.
3) Changing the 8% interest rate cap it currently is- to a 1% interest rate

1- pros, are that hey, you're debt free
1- cons - the banks just LOANED you that money, they are now out that money, and hurting more

2- pros, The government use to have the ability to pay your interest rate, (subsidized vs. un subsidized loans if you filled out your FAFSA)
Also, you would still be paying back the money you owe, banks wouldn't lose any money.
2- cons, the government, would be paying your interest, and that is quite a bit of money to shell out.
Also, banks would make no profit, and they are a business

3- Pros - Banks can still be in business making profits, and you have less money to pay back, you pay only slightly more than you borrowed and dramatically less that if you borrowed at a 8%
3- Cons - you still have to pay more than you borrowed.

Feel free to discuss if you are for/against, how you would change the petition.

Kevin · #2 02-12-2009, 05:28 PM

I'll never turn down free money from the government.

From my standpoint, the student loans programs are the only government programs out there where the government realizes a ROI via increased income taxes paid by individuals who earn more because of the degrees student loans helped them get.

Munchkin03 · #3 02-12-2009, 05:33 PM

Are you serious?

*not you Kevin*

agzg · #4 02-12-2009, 05:36 PM

There may be a petition, but I don't see the government doing it.

Although it would take a heavy load off my budget if any of those things happened.

There are programs you can work for that will forgive student loan debt.

Kevin · #5 02-12-2009, 05:37 PM

M -- I look at it this way. The government is going to be taking from me for a long, long time as I'm going to in all likelihood have a more than decent income.

I have no problem with taking whatever hep the government throws my way.

Munchkin03 · #6 02-12-2009, 06:35 PM

Quote:

Originally Posted by Kevin

M -- I look at it this way. The government is going to be taking from me for a long, long time as I'm going to in all likelihood have a more than decent income.

I have no problem with taking whatever hep the government throws my way.

No, I totally agree. That's why I had no problem taking out student loans. The student loan interest deduction was nice while it lasted, too.

I thought the first post was kind of insane.

Kevin · #7 02-12-2009, 07:10 PM

Quote:

Originally Posted by Munchkin03

I thought the first post was kind of insane.

Well yeah.. call me a cynic and all, but in the eyes of legislators, a fundamental reality which can always be counted on can be summed up like this:

Students and their finances < the bottom lines of banks

I'll concede that banks should get to make a decent profit on these loans, but I also think the profit shouldn't be more than a point or two above prime. Why is this? Subsidized loans are not bankruptable. In other words, these loans, particularly to doctors, lawyers and other money-making degree-holders have damn near zero risk and are generally, over the long haul, free money to the bank which can absolutely be counted on.

I think the interest rates are out of hand.

At any rate, while I'd love to see student loans forgiven, this isn't the sort of policy the Democrats will be interested in implementing. Graduates with student debts are not generally going to be in that mostly non-working group of folks dubbed the "working class," rather, we're more likely to be middle to upper-middle class -- kind of in the "to hell with you" category, right below the "we're actively trying to undermine your financial security" category.

At any rate, while I'd also like a choo-choo and a red race car and a spiderman for Christmas, I don't think I'll be getting my student loans forgiven either.

kstar · #8 02-12-2009, 08:45 PM

Quote:

Originally Posted by Kevin

At any rate, while I'd also like a choo-choo and a red race car and a spiderman for Christmas, I don't think I'll be getting my student loans forgiven either.

You could, quite a few of my friends got debt forgiveness (well a percentage of it) for their Law School Debt, provided they stay at Legal Aid for x number of years.

Kevin · #9 02-12-2009, 08:52 PM

Quote:

Originally Posted by kstar

You could, quite a few of my friends got debt forgiveness (well a percentage of it) for their Law School Debt, provided they stay at Legal Aid for x number of years.

I'm not really worried about that. I am pretty much (unlike many of my colleagues) assured of a very good income after graduation. While I'll take free money, slaving away at the PD's office isn't in the cards for me.

I do respect the job those folks do. One of our divorce clients was recently represented by the federal Public Defender who did a hell of a good job --our guy is a minority and got a hung jury on a drug charge -- I know, I didn't know that ever happened in Oklahoma either.

KSigkid · #10 02-13-2009, 10:13 AM

Quote:

Originally Posted by kstar

You could, quite a few of my friends got debt forgiveness (well a percentage of it) for their Law School Debt, provided they stay at Legal Aid for x number of years.

There's currently a federal program that if you work for 10 years in public service (which includes working in a federal, state, local or tribal government position, working for a public interest law organization, or a 501(c)(3) organization), and if you make your payments on time for 10 consecutive years, you qualify for debt forgiveness. You have to consolidate your debt under one of the federal repayment programs (i.e. not consolidate under a private lender). I know there are even better programs in some states (and that some schools, including Yale, I believe, have their own programs), and there are law students lobbying for better programs in most of the other states (including CT), for those who want to go into public interest law without having to take a second job at Starbucks.

I can see the wisdom of those types of loan forgiveness programs, especially in public interest law where they're having a hard time finding good young lawyers, or they're losing good attorneys after a couple of years because of financial issues.

Something like this wouldn't affect me a whole lot personally, as I've worked full-time throughout undergrad and law school to minimize loans. But, as noted above, I think it's pretty drastic and would have no chance of being enacted.

preciousjeni · #11 02-12-2009, 08:00 PM

Quote:

Originally Posted by Munchkin03

I thought the first post was kind of insane.

I'm finding that the OP is making a lot of *interesting* posts all over GC.

VandalSquirrel · #12 02-13-2009, 02:45 AM

Quote:

Originally Posted by preciousjeni

I'm finding that the OP is making a lot of *interesting* posts all over GC.

You read my mind! I felt like we were watching an episode of Coffee Talk with our host Linda Richman.

I'm feeling verklempt over Barbara Streisand, I'll give you a topic to discuss amongst yourselves, discuss:

The mean girls of GC are neither mean nor girls, DISCUSS.

Now that a person had eight babies using student aid money (allegedly) I doubt there will be anything but tighter restrictions on loans. It wouldn't surprise me if they did audits and you had to bring in receipts to prove what you spent money on.

Coramoor · #13 02-13-2009, 06:21 AM

Screw that. I just paid off 70K of student loan debt in two years. Is the gov't going to reimburse me for that?

BaltoAlphaPsi · #14 02-13-2009, 10:33 AM

Quote:

Originally Posted by Munchkin03

I thought the first post was kind of insane.

I never said I agreed with the petition.... I'm personally for a plan where interest rates are capped at 1-2 percent. But this is something that is out there, and it exists, and this is the news and politics section, so I wanted to see what peoples ideas where.

I'm not saying, give me a free ride, and I'm not saying I want the gov't to pay for my loans. I'm willing to pay back my loans, that's why I work and go to school full time. I'm just asking for people's opinion.

Zephyrus · #15 02-13-2009, 02:13 AM

School should be free all the way through college. Anything after, there should be a cost. I'm not sure if it's still the same, but a guy I used to work with, he was originally from the Ivory Coast. He lived in Paris for about 10 years and he said school is free there. I don't see why school can't be free here in the states.