Sen Elizabeth Warren introduces bill to eliminate college loan debt

chanson78

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And like the home loan debacle that created the 2008 collapse, we're doing that same thing with higher education - loaning money that we know can likely never be paid back because "everyone deserves a home" and "everyone deserves a college education"...
Except this time bankruptcy doesn’t get rid of the debt. I think the market has to have planned in ways to estimate the potential for crazy high returns, with the same amount of risk that some of these loans will never get repaid. Especially when you consider its the government holding all the actual debt, the servicers are getting their fees, and interest, often making it difficult for people to actually pay down the principal of the loan.
 

Go Bama

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I still think the best place to start is by dismissing the interest on these loans. Some of these students have overwhelming debt. 30% of dental school graduates owe over $300,000 at 6-7%. Recent graduates don’t make a whole lot of money and the debt can spiral out of control.

In no way do I support free college, but picking up the tab on the interest would be an investment in the future. I’d rather invest in education than a wall.

I also think there needs to be a potential job attached to the curriculum before the loan is granted. Please don’t loan money to interior design majors.
 

DzynKingRTR

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I still think the best place to start is by dismissing the interest on these loans. Some of these students have overwhelming debt. 30% of dental school graduates owe over $300,000 at 6-7%. Recent graduates don’t make a whole lot of money and the debt can spiral out of control.

In no way do I support free college, but picking up the tab on the interest would be an investment in the future. I’d rather invest in education than a wall.

I also think there needs to be a potential job attached to the curriculum before the loan is granted. Please don’t loan money to interior design majors.
I get what you are saying but interior design is a job and architects use them because it keeps us from dealing with picking colors, carpet, tile, etc.
 

NationalTitles17

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I still think the best place to start is by dismissing the interest on these loans. Some of these students have overwhelming debt. 30% of dental school graduates owe over $300,000 at 6-7%. Recent graduates don’t make a whole lot of money and the debt can spiral out of control.

In no way do I support free college, but picking up the tab on the interest would be an investment in the future. I’d rather invest in education than a wall.

I also think there needs to be a potential job attached to the curriculum before the loan is granted. Please don’t loan money to interior design majors.
Amen.

I have no opposition to college being "free". That would, however, require stricter standards on admission and/or to receive funding for that education.The current system is set up so nearly anyone can gain admission. That would have to change given that a large % never graduate and a fair number of those were likely in the beginning to never graduate. To be more clear, the funding would need to be restricted while people paying with private funds could still do so until proving themselves. The problems here are fairly obvious though, as how to determine these things are flawed and the origin of the funds is an issue.
 

Go Bama

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I get what you are saying but interior design is a job and architects use them because it keeps us from dealing with picking colors, carpet, tile, etc.
Sorry, DK. I picked one off the top of my head.

I have a deceased friend who majored in forestry at UTK. He worked in a seed store the rest of his life.

I have an employee who owes $50,000. It was money invested for a job which doesn’t earn enough to pay the loan back.

I have a patient with an MBA who left his job managing a Dollar Store to be a liquor store clerk. Our church financial secretary has an MBA and makes $11 an hour working three days a week.

I could site numerous people who have student debt, a degree, and a low income or no job. Many of these are highly intelligent people.
 

Bamabuzzard

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I tell you what needs to be supported more by our society, if for nothing more than to curb ever rising cost of the services to the consumer, and that's trade schools. I'm not sure if anyone has had to pay for a plumber, A/C technician, etc. But they can basically charge what they want now days. I've got several friends in the plumbing and heating/air conditioning business and they say all the time. There's simply not enough people entering the field to properly service the demand. Which leads to an increase in wages for those in it, but it also means an overload of work for them to. The buddy in the A/C business said he was still at work installing an a/c at 8:45 the other night.
 
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TIDE-HSV

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I tell you what needs to be supported more by our society, if for nothing more than to curb ever rising cost of the services to the consumer, and that's trade schools. I'm not sure if anyone has had to pay for a plumber, A/C technician, etc. But they can basically charge what they want now days. I've got several friends in the plumbing and heating/air conditioning business and they say all the time. There's simply not enough people entering the field to properly service the demand. Which leads to an increase in wages for those in it, but it also means an overload of work for them to. The buddy in the A/C business said he was still at work installing an a/c at 8:45 the other night.
Preach it, bro!!
 

4Q Basket Case

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Sorry, DK. I picked one off the top of my head.

I have a deceased friend who majored in forestry at UTK. He worked in a seed store the rest of his life.

I have an employee who owes $50,000. It was money invested for a job which doesn’t earn enough to pay the loan back.

I have a patient with an MBA who left his job managing a Dollar Store to be a liquor store clerk. Our church financial secretary has an MBA and makes $11 an hour working three days a week.

I could site numerous people who have student debt, a degree, and a low income or no job. Many of these are highly intelligent people.
I'm truly sorry your friends invested in education that didn't pay off monetarily.

But I fail to see how that's my problem.

I buy a stock, and it goes down, it's my problem.

I buy a house, the neighborhood goes to the toilet, it's my problem.

I buy a business, I pay too much or run it into the ground, it's my problem.

I buy a lemon car, finance it for 72 easy monthly payments, and it's both worthless and inoperable 2 years later, yet I still owe 48 payments, and it's my problem.

But if I buy education, and it doesn't pay off, all of you guys have to bail me out?

I hear lots of long sad stories, and, "How would you feel if...." But I don't hear a competing logical position. Is there one out there?
 
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jthomas666

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I'm truly sorry your friends invested in education that didn't pay off monetarily.

But I fail to see how that's my problem.

I buy a stock, and it goes down, it's my problem.

I buy a house, the neighborhood goes to the toilet, it's my problem.

I buy a business, I pay too much or run it into the ground, it's my problem.

I buy a lemon car, finance it for 72 easy monthly payments, and it's both worthless and inoperable 2 years later, yet I still owe 48 payments, and it's my problem.

But if I buy education, and it doesn't pay off, all of you guys have to bail me out?

I hear lots of long sad stories, and, "How would you feel if...." But I don't hear a competing logical position. Is there one out there?
The competing issue is that the sheer number of people in problematic student loan situations has become a drag on the economy--millennials are having to spend so much of their income on their student loan debt that they cannot do the usual things that keep the economy going, such as buying property, and all that fun stuff.

I get the reluctance some may have at the idea of loan forgiveness, but some sort of relief helps the economy, not just individuals. And frankly, I'm gratified/delighted that there have been a lot of different ideas floated in this thread.
 

TIDE-HSV

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The competing issue is that the sheer number of people in problematic student loan situations has become a drag on the economy--millennials are having to spend so much of their income on their student loan debt that they cannot do the usual things that keep the economy going, such as buying property, and all that fun stuff.

I get the reluctance some may have at the idea of loan forgiveness, but some sort of relief helps the economy, not just individuals. And frankly, I'm gratified/delighted that there have been a lot of different ideas floated in this thread.
You are correct. Student loans are only second to house mortgages, outstripping credit card debt. It amounted to 1.3 trillion, last I looked. Unfortunately, a lot of it is excessive interest rate-based and a lot of it is predatory, as in the companies Secretary De Vos is involved in. It needs to be reformed and the country needs to invest in trade schools, while we have some industry remaining...
 

Go Bama

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I'm truly sorry your friends invested in education that didn't pay off monetarily.

But I fail to see how that's my problem.

I buy a stock, and it goes down, it's my problem.

I buy a house, the neighborhood goes to the toilet, it's my problem.

I buy a business, I pay too much or run it into the ground, it's my problem.

I buy a lemon car, finance it for 72 easy monthly payments, and it's both worthless and inoperable 2 years later, yet I still owe 48 payments, and it's my problem.

But if I buy education, and it doesn't pay off, all of you guys have to bail me out?

I hear lots of long sad stories, and, "How would you feel if...." But I don't hear a competing logical position. Is there one out there?
Are you under the impression I was hoping for the student loans to be vanquished? I was just suggesting the interest be removed.
 

jthomas666

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You are correct. Student loans are only second to house mortgages, outstripping credit card debt. It amounted to 1.3 trillion, last I looked. Unfortunately, a lot of it is excessive interest rate-based and a lot of it is predatory, as in the companies Secretary De Vos is involved in. It needs to be reformed and the country needs to invest in trade schools, while we have some industry remaining...
Yeah--one of my BILs owns his own welding company. He's pulling in more than my wife and me combined.
 

CharminTide

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I agree that any student debt relief without reform addressing the cost of education is like putting a band-aid on a gunshot wound. I hope that this gets asked at one of the Dem debates, but I wouldn't expect it next week. Given that Trump hires people like DeVos who personally profit from student loan debt, it's clear that a solution to this problem can only come from one party, and they need to be pressed on it. Unfortunately, that kind of fiscal restraint is probably more suited to the general election rather than a primary.

It's appalling that the government charges me 7% interest on my student loans. My mortgage is 3.5%. Education is probably the most cost-effective investment we can make, and I agree that interest should be waived on these loans. IMO the role of good government is to help citizens better themselves through schooling, not to profit off the poor and middle class families who can't afford tuition on their own.
 

BamaFlum

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Based on this thread, what I could stand behind would be a greatly reduced interest rate type forgiveness so people could more effectively pay off the principle; however, just waiving a magic wand and making student debt disappear is wrong on many levels.


Sent from my iPhone using Tapatalk
 

Bamabuzzard

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Based on this thread, what I could stand behind would be a greatly reduced interest rate type forgiveness so people could more effectively pay off the principle; however, just waiving a magic wand and making student debt disappear is wrong on many levels.


Sent from my iPhone using Tapatalk
Agreed. I also think any governmental backed educational loan needs to go through a lot of scrutiny before being issued to a prospective student. I like the idea of giving some level of scrutiny to the degree or field of employment they are seeking. I have no problem with private companies issuing student loans for whatever interest rate and terms they can get on the open market. But anything affiliated with the government/taxpayer funds. I would be on board with favorable low or no interest loans with the understanding that the government isn't going to hand out loans like candy on Halloween for degrees that do not have an active/"employable" presence in society.
 

RollTide_HTTR

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Agreed. I also think any governmental backed educational loan needs to go through a lot of scrutiny before being issued to a prospective student. I like the idea of giving some level of scrutiny to the degree or field of employment they are seeking. I have no problem with private companies issuing student loans for whatever interest rate and terms they can get on the open market. But anything affiliated with the government/taxpayer funds. I would be on board with favorable low or no interest loans with the understanding that the government isn't going to hand out loans like candy on Halloween for degrees that do not have an active/"employable" presence in society.
I could agree with this idea but it realllly depends on the specifics. I can see a situation where this would cause a lot of unintended consequences. For example, Teachers in some states net out less than $20k. Wouldn't it be a bad investment to give them a loan? But at the same time we need MORE well educated teachers not fewer.
 

Bamabuzzard

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I could agree with this idea but it realllly depends on the specifics. I can see a situation where this would cause a lot of unintended consequences. For example, Teachers in some states net out less than $20k. Wouldn't it be a bad investment to give them a loan? But at the same time we need MORE well educated teachers not fewer.
Being a teacher is a very "employable" field. But loaning someone $50,000-$100,000 for a general "music degree" (extraordinarily broad) would be a no go. Had a neighbor years ago whose daughter majored in "Music" and ended up working at a "Sound Gallery" that sold audio equipment. The degree was worthless on the open market from the get go. Yet she was strapped with student loans out the wazzoo, with mama and daddy having to help.
 

92tide

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Being a teacher is a very "employable" field. But loaning someone $50,000-$100,000 for a general "music degree" (extraordinarily broad) would be a no go. Had a neighbor years ago whose daughter majored in "Music" and ended up working at a "Sound Gallery" that sold audio equipment. The degree was worthless on the open market from the get go. Yet she was strapped with student loans out the wazzoo, with mama and daddy having to help.
i know several folks with degrees in music who are gainfully employed and some who are doing quite well.
 

Bamabuzzard

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i know several folks with degrees in music who are gainfully employed and some who are doing quite well.
I'd be interested to know if the music degree they have is a general music degree/much like a general studies degree or more specialized and was the degree required for the job? Either way, this is something that would have to be addressed with any type of reform in governmental educational loans. The "line" would have to be drawn somewhere and there would be those who would not qualify, even though someone could point to several examples and say "You see, that person found a job." Someone mentioned interior designing. Which is another one of those jobs that even though we could find examples of people who found gainful employment in that field, is the rate of "employability" (I don't even know if that's a word) of someone with an interior design degree/certification stable enough to justify a government backed loan?
 
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92tide

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I'd be interested to know if the music degree they have is a general music degree/much like a general studies degree or more specialized and was the degree required for the job. Either way, this is something that would have to be addressed with any type of reform in governmental educational loans. The "line" would have to be drawn somewhere and there would be those who would not qualify, even though someone could point to several examples and say "You see, that person found a job." Someone mentioned interior designing. Which is another one of those jobs that even though we could find examples of people who found gainful employment in that field, is the rate of "employability" (I don't even know if that's a word) of someone with an interior design degree/certification stable enough to justify a government backed loan?
some of them had general music and went on to graduate school. they mostly ended up in education, working for orchestras (as musicians or staff), etc

i think a lot needs to be done to reform the student loan business, but i don't think it should involve only loaning for certain degrees. most of the folks i went to school with changed majors a few times and then ended up working in different fields.

i'm not sure why people keep ragging on interior design. it is a valid career path.
 
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