Republicans raise the debt ceiling by 4 trillion while kicking millions off insurance

Because they are guaranteed by the government - essentially banks make the loan, the government pays them off, and then collects interest in an indentured servitude way for years.

If the loans were ZERO percent that would be the way to go.

DD

 

Absolutely they do, because they wouldn't be handed out without those extra strings. That was connected to the federal subsidization (which as I mentioned earlier, is what caused the problem in the first place). We should get rid of the extra strings for any new loans going forward (so the people making the loans are doing so knowing that the strings don't exist and can act accordingly).

Student loans typically have lower interest rates than other unsecured loans. The interest rates are not predatory at all. The loans are too high, but that is precisely because of government actions like loan forgiveness programs, subsidization, and federal guarantees. Regardless of all of that, paying back money you borrow according to the terms you agreed to is always the morally correct choice.

 

Quoted for truth

 

And maybe the federal government needs to stop subsidizing useless degrees and other 'college' expenses. Raise the standards. Heavily subsidize community colleges.

 

Or, and this might sound crazy, leave it to the market and don't subsidize anything.

 

The problem is the the deception that occurs with student loan. There are many articles and examples. But this is an overview of the kinds practices that are predatory.
https://www.bankrate.com/loans/student-loans/predatory-lending-statistics/

 

An educated populace is better than an uneducated one. We should definitely subsidize education/training. Just a matter of how and by who.

 

That article cites one (now defunct, and anyone that would go to Corinthian college probably shouldn't be going to college anyway.) college and several debt relief scams. It doesn't cite a single predatory lender. There is one paragraph of two sentences that even mentions predatory lending practices (Predatory student loans often feature double-digit interest rates of up to 35 percent and origination fees in excess of five percent. This combination can easily turn a modest balance into a six-figure debt, causing borrowers to struggle with repayments for more than a decade after leaving school.). I don't know who is taking out a student load with an interest rate almost double credit card interest rates, but they probably aren't smart enough to go to college.

University education was incredibly over pushed and over saturated. Many of the people that went to colleges and universities had no need to be there and frequently no business being there. I disagree that we should subsidize education. Those that value it will find a way to pay for it. Those who don't should find themselves in other avenues toward their road to a successful life. The world needs more unskilled labor and tradesmen than it needs jobs that require a college degree. It was a disservice to the people to push the idea that the only correct path was college.

 

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another convenient baseless claim by you

• student loans, sponsored by the Govt,
  • Interest rates on federal student loans are set annually by Congress, influenced by the 10-year Treasury note rate
    • plus a fixed increase. https://www.sofi.com/learn/content/student-loan-interest-rates-high/

just to add some context.

Student loans aren’t inherently predatory, but certain practices by lenders and servicers can make them predatory in nature.

student loans, funded by for-private colleges, https://www.npr.org/2022/03/01/1062679587/for-profit-colleges-student-loan-borrowers-fraud,
are plagued with fraud/abuse/predatory lending practices

https://www.tateesq.com/learn/student-loan-disputes-predatory

 

If it is a baseless claim, why did you not refute it. You say my statement (that student loans typically have lower interest rates than other unsecured loans) and then posted that the government sponsors loans, the interest rates are set by Congress based on the 10-year T reasury note, and have a fixed increase. None of that actually refutes my claim, and in fact doesn't even address it. You have talked about the mechanism for setting student loan rates in response to my claim that the rates are lower than other unsecured loans. The link you provided shows that even the highest student loan rates (Direct Plus loans) are only 9.08%. Most lenders wouldn't even give an unsecured loan to an 18-year-old with no income and no or limited credit history. Certainly not a loan at 9.08% for tens of thousands of dollars and no interest or payments for four years. Once again, you have failed to refute something I have said, despite your sad repeated attempts.

I just went ahead and bolded the part where you admitted I was right. Your first link in this section has nothing to do with predatory lending practices, it is about failed for profit colleges. I have already addressed above that people that went to colleges like Corinthian Colleges should not have gone to college at all. Your second link provides a tutorial on recognizing predatory lending practices, but doesn't show any pervasive predatory lending in the student loan field. I would encourage naïve borrowers to read it for information that would be helpful to them, but it once again fails to refute my claim that student loan interest rates are not predatory.

 

You can't because unchecked capitalism leads always to Oligarchy, Capitalism needs checks or you get 10 year olds working in the mines.

DD

 

Jason Calasari is not my role model. I agree Jason is low iq tho.

Do you recall me talking about 'nothing stops this train'? Republicans and Democrats are not cutting ****. Between favorable tax cuts and doge, Washington has spoken. The Trump administration has officially neutered doge.

The difference between you and I is I have a good idea of what we are getting with Trump. He is still a bad president, but 100x better than a 2x worse Biden. Harris is a garbage bag.

 

If yall read up on every financial crisis in American history your minds would explode.

 

my purpose is to just provide the facts / mechanics and relevant links.

• as opposed to your baseless / convenient claim with no links nor any other references

​

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yes it does; too bad that it is above your head

 

I cannot get a straight answer to this question

IF YOU ARE CUTTING THE BUDGET SO MUCH
WHY DO YOU NEED TO RAISE THE DEBT CEILING??

Rocket River

 

Now this I do agree with... College is not for everyone...

At the same time Colleges are a joke...

• The first 2 years of college is nothing more than an extension of High School.. That's a freaking rip off to get money.
• Not all degrees need 4 years.. Lets take CIS Degree.. It should be 2 years max.. Right now I would rather hire guys coming out of boot camps or a Junior college... They are actually better prepared..

T_Man

 

The interest rates are low...but I swear the way it accrues is like the mafia charging vig. It's amortized weird, and the interest just compounds and compounds to almost perpetuity. I'm a republican but student loans need some kind of reform, both going forward on new loans, and relief to those that are repaying and have already paid back more than the original principal balance.

 

Yea but you are an Elon homer…. So your intelligence and grasp on reality is in doubt. But hey! I hear Tesla’s robotaxies are on the road here in Austin!!!