"Elizabeth Warren Wants to Let You Pay for College Like a Car"

[applegrove]

Elizabeth Warren Wants to Let You Pay for College Like a Car

http://www.thedailybeast.com/articles/2014/02/05/elizabeth-warren-wants-to-let-you-pay-for-college-like-a-car.html

"SNIP......................................



Elizabeth Warren wants paying for college to be like paying for a car.

No, she doesn’t want mandatory airbags in colleges or Presidents’ Day sales on tuition. Instead, the senator from Massachusetts wants students to be able to refinance federal student loans.

Unlike a loan to pay for a house, a vehicle, or just about anything else your heart desires, you can’t refinance a student loan. The result is that student loans have become a rare way for the federal government to generate revenue, making $66 billion in profits off them between 2007-2012. Warren told The Daily Beast that she is discussing legislation with colleagues that would allow students to refinance their federal loans at rates currently offered to new borrowers. The legislation will be introduced in the coming weeks as Warren continues to work with other senators from both parties on the exact language.

Warren has long been working to reduce the $1.2 trillion in student loan debt currently held by Americans, seeing it as deeply problematic that the federal government makes a huge profit on student loans. In her opinion that “does not reflect our values” and presents a threat to the economic recovery. Warren cited a recent report that cited student borrowing as hurting the economy because the debt overhang kept many purchasing cars or houses.



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[former9thward]

1. A better idea would be to forbid the use of federal student loans at schools

that raise tuition beyond the rate of inflation. That would quickly bring down out of control tuition increases.

[Adam051188]

29. there are lots of better ideas for everything. they are not feasable because shut up

I believe the reason liz warren is talking about this is because there is a precedent in our economy of the "car loan". she is trying to apply that precedent to the alternative situation of student loans. she is semi-realistic about the society we live in.

[gerogie2]

2. The government doesn't profit off student loans

Student loans are a part of financing college by the Federal Government. The Federal government gives about $24B in grants each year to college students across the nation.

Refinancing will do very little for college students. Oregon is starting a sensible solution by allowing young students to pay 3% of their annual income when they attend a four year university. That way if they are every laid off, can't find a job or become disabled they will not end up in collections or in court.

Private Universities could finance their own students through the banking system or set up a voluntary income tax payment system.

[liberal_at_heart]

11. I've never said this before but I would rather go without a college degree than

agree to a lifelong income tax. The right solution is a free college education, not a lifetime tax.

[gerogie2]

14. There is no such thing as a free college education

You can choose to sign up for college loans then pay for them when you graduate. It is the students choice.

[liberal_at_heart]

17. there didn't used to be a such thing as an airplane either. Those that lack

imagination don't accomplish much. It's not that it can't be done. It's just that it hasn't been done yet. Actually it has been done. California used to do it. America is one of the riches nations on Earth. We have the money. What we don't have is the right priorities.

[malthaussen]

31. Kind of a poor comparison, there.

Flight was a physical problem. Education is a social problem. The variation in complexity is huge. And your "free" education is paid for by others. Teachers and administrators have to be paid. Physical plant must be constructed and maintained. A myriad costs are entailed in education. Education could be provided free to the recipient -- this has been done, is still being done in parts of Europe. But those places where college education is "free" do not provide it for all, do not believe as we do that "everybody should have a college education."

Sure, by taxation we could improve our education at every level, not just college, and spread the costs around among those who already have the cash, rather than imposing crushing debt on those just starting out. By taxation we could solve a whole bushel basket of problems. But our government lacks the will to raise taxes to pay for these things.

I would also suggest that you consider things from the point of view of those who hold the money for a moment. The bald truth is that they do not need a large, educated workforce, that the vast majority of jobs could be done by illiterates and only a small, highly-specialized coterie need be educated for their purposes. Why on earth would they disgorge for something they don't want? Unless forced, of course.

-- Mal

[etherealtruth]

18. ... and, what a lovely choice (many) young folk are forced to make

... Huge debt or no education.

Your post almost makes it sound as if you believe this is an acceptable choice they are being forced to make. I hope i have misinterpreted the tone.

[Cal Carpenter]

20. LOL.

http://en.wikipedia.org/wiki/Free_education#List_of_countries_with_free_post-secondary_education

[WillowTree]

25. LOL yourself The very first line of that Wiki entry that you refer to begins with.......

......."Free education refers to education that is funded through taxation......."

[Cal Carpenter]

26. What's your point?

The list is called Countries with FREE post-secondary education.

Of course it is funded through taxes, or did you think I believed it was magical education fairies doing volunteer work?

It's funded by taxes just like our K - 12 public education, also commonly referred to as "free".

So what's your point?

[Adam051188]

32. are you sure you're a democrat?

oh yes I forgot taxes are bad and government can't create jobs, because everything we do as a society should have a profit motive. things that are not profitable like cleaning up the ecological mess we've created by fracking(which is sadly necessary if we want to heat our homes), treating people convicted of minor to moderate crimes like human beings and teaching them skills to prevent recidivism, and educating our children thoroughly and creatively should not be done. right? right.

[WillowTree]

23. How's that "free" college degree going to be paid for if not by taxes?

[liberal_at_heart]

24. That's exactly what it should be paid with just like K-12 is.

But it should be a shared tax paid by all of us, not an income tax that the student should bare on their own.

[maddiemom]

12. Yes, a grant is not a loan, but closer to a scholarship that needn't be paid back.

My parents, back in the Sixties, were very middle class/middle income. With judicious saving and juggling, they were able to finance my (state university) undergraduate degree without going into debt. I was also able to finance my post-graduate schooling without borrowing. For what my Master's plus was worth, however, I now wish that I'd held on to that money for my daughter's later education. Despite a college fund from the day she was born, a divorce and the economy stopped that short by the end of her elementary years. Consequently, now in her later thirties, she still has college loan debt, even though her father and I are professionals whose income has been, over the years, far more than any of our parents ever earned. Senator Warren's ideas on college loans are excellent, as her ideas usually are. The situation in regard to college debt for the generations after our own, early "baby boomers" generation, are simply insane for any civilized nation with any regard for the future of the average citizen who pursues advanced, increasingly financially worthless, higher education.

[dionysus]

27. "Refinancing will do very little for college students." bull fucking shit.

I've been locked in at 6% for 15 years. had I been able to refinance when the rates were 2% a few years ago I would have saved tons of money.

so far I've paid over 20k in interest on a 40k loan.

all I've seen you some in your short time here is promote RW garbage.

[notadmblnd]

28. So all of these publications are liars, and you are the expert? Yeah, Riiiiight.

News for government profits from student loans
The Independent

Schatz calls $66 billion in government profits from student loans 'troubling'
Hawaii Reporter ‎- 4 days ago
REPORT FROM OFFICE OF SENATOR SCHATZ - Washington, D.C. – U.S. Senator Brian Schatz (D-Hawai'i) today called a new Government ...

Report: Government raked in $66 billion off student loans
West Hartford News‎ - 6 days ago

Government books $41.3 billion in student loan profits - USA Today
www.usatoday.com/story/...student-loan-profit/3696009/‎
USA Today
Nov 25, 2013 - The federal government made enough money on student loans over the last year that, if it wanted, it could provide maximum-level Pell Grants ...
US government “profits” from student loans in 2013 surpassed $41 ...
rt.com/usa/student-loans-government-profit-292/‎
RT
Nov 25, 2013 - The US government made enough profit from student loans in the last year to provide full Pell Grants of over $5600 to 7.3 million students.
Federal government books $41.3 billion in profits on student loans
www.freep.com/.../Federal%20government%20prof...‎
Detroit Free Press
Nov 26, 2013 - The federal government made a $41.3-billion profit on student loans for ... The $41.3-billion profit for the 2013 fiscal year is down $3.6 billion ...
No, the federal government does not profit off student loans (in some ...
www.washingtonpost.com/.../no-the-fe...‎
The Washington Post
by Dylan Matthews - in 1,686 Google+ circles
May 20, 2013 - If you're sick of having to make student loan payments, you're not alone. A recent report from the Consumer Financial Protection Bureau ...
RI US Reed blasts $66B profits on student loans - Education ...
www.boston.com › News › Education
The Boston Globe
Feb 1, 2014 - Reed and eight other U.S. senators committed to wring government profits out of student loans and address a $1.2 trillion in outstanding ...
US Mass. senator blasts profits on student loans - News Local ...
www.boston.com/...government-profits-student-loans/...
The Boston Globe
Feb 1, 2014 - BOSTON (AP) — U.S. Sen. Elizabeth Warren said Saturday she is shocked that the federal government is earning an estimated $66 billion in ...
Student Loan Profits - Huffington Post

[Adam051188]

30. lol

[WillyT]

3. K & R !!!

[xocet]

4. How about free education for all instead of tying the future of the US to an attempt to make profit?

n/t

[debunkthis]

5. +1000

eom

[Oakenshield]

6. Best response in this thread.

[grahamhgreen]

8. The obvious answer. PS - this week cost us another 2 billion in Afghanistan.

[morningfog]

10. Thank god Obama withdrew from Afghanistan.

Sarcasm.

[liberal_at_heart]

9. +1

[tk2kewl]

13. yeah... really...

that used to be no brainer for liberals

[joshcryer]

15. +1

Warren siding with the profiteers on this one.

[cinnabonbon]

16. +1

[reformist2]

7. Students need to stop paying loans, unionize, and bargain for reduction in principal.

For a student with 80K in debt, a reduction of the interest rate from 5% to 4% is laughable.

[Donald Ian Rankin]

19. I'd like to see up-front fees replaced with a graduate tax.

In practical terms, there wouldn't be that much difference between - as we have in the UK - a loan that you only have to start repaying once you're earning a certain amount and a requirement that graduates pay an increased rate of income tax.

But psychologically, I think there would be a big difference for teenagers, and the latter would do less to discourage students from poor families applying.

[treestar]

21. that would be cool, if it would pass

2014 elections will matter.

[Vattel]

22. Awesome. She rocks!

It is so nice to see someone in politics who can actually think and solve problems.