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Author
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Topic: Student Loans...Good Or Evil?
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Randall
Webmaster Posts: 6734
From: The Goober Galaxy
Registered: Apr 2009
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posted March 09, 2011 08:15 PM
  
The federal direct student loan is something I avail myself of, but what do ya'll think of them and the Dept. of Education? There's no credit check at all and almost no quealifying. It's insane!IP: Logged |
AcousticGod
Knowflake Posts: 4923
From: Pleasanton, CA
Registered: Apr 2009
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posted March 10, 2011 11:50 AM
It's a bit like morals, subjective in nature. If you're a purist, maybe you wouldn't like the not taking responsibility for your own bills from the get go. A person of practicality, I think, would weigh the reward, and as long as they are reasonably confident they can recoup the loan amount in employment after the education would take the money.IP: Logged |
Randall
Webmaster Posts: 6734
From: The Goober Galaxy
Registered: Apr 2009
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posted March 10, 2011 11:51 AM
What about the aspect of the government guaranteeing the loans? Or in the case of the fdsl, making the loans? ------------------
"Never mentally imagine for another that which you would not want to experience for yourself, since the mental image you send out inevitably comes back to you." Rebecca Clark IP: Logged |
juniperb
Moderator Posts: 1192
From: Blue Star Kachina
Registered: Apr 2009
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posted March 10, 2011 11:53 AM
quote:
There's no credit check at all and almost no quealifying. It's insane!
Hmmm, kinda reminds me of the mortage fiasco. I never took a student loan but worked my way through so I can`t say re any student loans.
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The Earth Laughs In Flowers
... R.W.Emerson IP: Logged |
AcousticGod
Knowflake Posts: 4923
From: Pleasanton, CA
Registered: Apr 2009
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posted March 10, 2011 12:14 PM
The case was made that the bank loans were more expensive to students and the government when the Obama administration took the lead in financial aid.Among other changes, the Obama budget eliminates the Federal Family Education Loan Program, which excessively subsidizes banks, and moves to the U.S. Department of Education’s Direct Loan program. The Congressional Budget office projects this move to save $94 billion over nine years. The Obama budget then redirects the savings to students. The Congressional Budget Office estimates that in 2010-2011, $5 billion would be cut from subsidies to banks and lenders, and invested in students instead. http://www.ourfuture.org/report/2009031325/obama-s-budget-supporting-students-not-banks However, last week, the Congressional Budget Office said the Obama plan would save taxpayers $67 billion over 10 years, which was far less than projected months ago. The savings would come from ending bank subsidies and allowing the government to keep income earned on the spread between making and issuing the loans that banks now pocket. http://money.cnn.com/2010/03/11/news/economy/student_loans/ How did the system work before?
Under the old program, which began in 1965, "commercial banks like Sallie Mae and Nelnet have received guaranteed federal subsidies to lend money to students," say David M. Herszenhorn and Tamar Lewin in The New York Times. The banks made the profits, but the government assumed "nearly all the risk" — which is why Democrats complained that it "fattened the bottom line for banks at the expense of students and taxpayers." http://theweek.com/article/index/201377/Obamas_student_aid_reform_A_concise_guide
I say get it while it's there. IP: Logged |
littlecloud
Moderator Posts: 745
From:
Registered: Nov 2010
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posted March 10, 2011 03:44 PM
What is the federal direct student loan?IP: Logged |
Randall
Webmaster Posts: 6734
From: The Goober Galaxy
Registered: Apr 2009
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posted March 10, 2011 03:54 PM
Obama just moved that one loan program to fdsl. Bush actually was the one behind the fdsl. It's a direct loan from the federal government, bypassing lenders completely. ------------------
"Never mentally imagine for another that which you would not want to experience for yourself, since the mental image you send out inevitably comes back to you." Rebecca Clark IP: Logged |
ghanima81
Moderator Posts: 585
From: Maine
Registered: Apr 2009
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posted March 17, 2011 09:00 AM
I have a loan I took out in 2006 for student loans that I pay back to the U.S. Dept of Education. They have been great. Interest rate is decent, and you don't deal with 25 middle men if you need to talk to anyone, so that's nice. IP: Logged |
Lindaland
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