Great Solution for the $1 Trillion Student Loan Crisis

[imagep]

The primary student loan repayment problem is that students with debt are assuming obama is going to gift them out of it. Why pay it back when you can count on the socialist in charge to give you a break?

I must have missed something. I wasn't aware that the guberment was going to foregive anything. That certainly shouldn't happen. I'm a huge believer and supporter of the student loan system, and equally as big of a supporter of people having to repay their debts.

 

[CalGun]

I must have missed something. I wasn't aware that the guberment was going to foregive anything. That certainly shouldn't happen. I'm a huge believer and supporter of the student loan system, and equally as big of a supporter of people having to repay their debts.

Did you miss the occupy movement that Pelosi and obama thought were great?

 

[imagep]

Did you miss the occupy movement that Pelosi and obama thought were great?

No, I witnessed the occupy movement. You mean that was serious? I thought it was a staged practical joke or something. Geesh, I really need to spend more time watching MSNBC so that I can get the "real" news.

So are you telling me that Occupy Wall Street resulted in student loans being forgiven? I still don't understand what the "crises" is, or how this is going to collapse our economy, or how telling borrowers that they must repay the debt that they agreed to is even being presented as an issue.

I'm not really disagreeing with you, I think that to some extent I am on your side of this issue, but I think I am missing what the commotion is about.

 

[CalGun]

I'm just pointing out its an agenda item of the radical left to let those who have debt for education to get a "break" and some all the way down to zero. I'm not in favor of people borrowing money and not having to pay it back. It bugs me to no end - it bugs me on the housing "crisis" too how people willingly signed "notes" only to walk away and strip the copper out of the walls as they left and blaming a bank for "loaning" them money - they asked for. I favor a debtors prison. Maybe a work camp where by we can get something made for society from the deadbeats that abuse it.

No, I witnessed the occupy movement. You mean that was serious? I thought it was a staged practical joke or something. Geesh, I really need to spend more time watching MSNBC so that I can get the "real" news.

So are you telling me that Occupy Wall Street resulted in student loans being forgiven? I still don't understand what the "crises" is, or how this is going to collapse our economy, or how telling borrowers that they must repay the debt that they agreed to is even being presented as an issue.

I'm not really disagreeing with you, I think that to some extent I am on your side of this issue, but I think I am missing what the commotion is about.

 

[imagep]

I'm just pointing out its an agenda item of the radical left to let those who have debt for education to get a "break" and some all the way down to zero. I'm not in favor of people borrowing money and not having to pay it back. It bugs me to no end - it bugs me on the housing "crisis" too how people willingly signed "notes" only to walk away and strip the copper out of the walls as they left and blaming a bank for "loaning" them money - they asked for. I favor a debtors prison. Maybe a work camp where by we can get something made for society from the deadbeats that abuse it.

I have to agree with you about student loans, if our guberment is nice enough to hand these out these unsecured loans to just about anyone, by God, those who receive those loans should be required to pay them back, period. At least I am glad to discover that I'm not on the "radical left".

Somehow I feel a little different though about the foreclosure issue. Private lenders, investors, and Wall Street firms entered into these contracts and knew that there were risks, and yet they still made these loans and purchased mortgages, despite the fact that they either knew, or should have known, that they were high risk. Certainly the borrowers shouldn't have destroyed the properties as they abandoned them, but if someone can't afford the payment due to loss of a job, they just can't afford the payment. You can't get blood out of a turnup. Nor should we expect the average Joe to be a financial expert, but many banks, real estate agents, and mortgage brokers certainly represented themselves as "experts", telling unsupecting (although maybe a little stupid) suckers that they should spend $800k on a $125k house.

 

[CalGun]

Well I tend to disagree on the mortgage front, but I realize my extreme minority position. My parents raised 5 kids and I'm the only one that lost a home in this mess but I still paid off my mortgage and avoided bankruptcy. Mind you I had to live out of a shack for a few months until I could afford the materials to build my new home but it's debt free and so am I now.

While there were sharks peddling cheap and easy loans the people were buying them. They got contracts put before them and had had a choice, sign or don't. I signed. I paid what I borrowed back when the lender agreed to share in the loss. I lost my 20% down and 4 years of payments and they lost not a dime, but I got out from the payments thank God.

I have to agree with you about student loans, if our guberment is nice enough to hand these out these unsecured loans to just about anyone, by God, those who receive those loans should be required to pay them back, period. At least I am glad to discover that I'm not on the "radical left".

Somehow I feel a little different though about the foreclosure issue. Private lenders, investors, and Wall Street firms entered into these contracts and knew that there were risks, and yet they still made these loans and purchased mortgages, despite the fact that they either knew, or should have known, that they were high risk. Certainly the borrowers shouldn't have destroyed the properties as they abandoned them, but if someone can't afford the payment due to loss of a job, they just can't afford the payment. You can't get blood out of a turnup. Nor should we expect the average Joe to be a financial expert, but many banks, real estate agents, and mortgage brokers certainly represented themselves as "experts", telling unsupecting (although maybe a little stupid) suckers that they should spend $800k on a $125k house.

 

[Fenton]

I have to agree with you about student loans,
if our guberment is nice enough to hand these out these unsecured loans to just about anyone, by God, those who receive those loans should be required to pay them back, period. At least I am glad to discover that I'm not on the "radical left".

Somehow I feel a little different though about the foreclosure issue. Private lenders, investors, and Wall Street firms entered into these contracts and knew that there were risks, and yet they still made these loans and purchased mortgages, despite the fact that they either knew, or should have known, that they were high risk. Certainly the borrowers shouldn't have destroyed the properties as they abandoned them, but if someone can't afford the payment due to loss of a job, they just can't afford the payment. You can't get blood out of a turnup. Nor should we expect the average Joe to be a financial expert, but many banks, real estate agents, and mortgage brokers certainly represented themselves as "experts", telling unsupecting (although maybe a little stupid) suckers that they should spend $800k on a $125k house.

The GSEs purchased the vast majority of bad loans being pushed by housing policies that set quotas that started at 40% and stopped at 57%.

Fannie qnd Freddie held 5 Trillion in crap mortgages or MBSs backed by crap mortgages when everything collapsed. Under Obama FHA through Ginnie Mae is now up to over a Trillion.

I know people like to go after the banks, but without a corrupted Fannie and Freddie, the banks would have had no buyers for their Sub-Prime loans, no way to continue creating these loans that were started because Clinton and Janet Reno pushed the false narrative of redlining, and threatened the banks with prosecution.

It's a highly unimformed opinion, to lay the blame at the feet of " Wall Street" and the banks, when Banks had to be forced to create a type of loan that THEY KNEW was going to probably go into default.

Clinton asked for a report to be issued on " redlining" from the Boston FED, that was filled with mistakes and didn't take into account factors like employment, and assets.

From that he built a massive false narrative and in 1995 issued numerous Executive orders through his National HomeOwners Strategy that among other things lowered Fannie and Freddie's capital requirement from 10% down to 3%.

That plus his appointing of Democrat criminals to run the GSEs ( Franklin Raines) and you have the beggining of the Sub-Prime crisis.

 

[Geoist]

Why can't those who have jobs simply start paying more taxes, and those without jobs enlist in the military; after 6 years of service in the military at 75% pay their debt can be considered paid. Why are all the solutions give, waive, pass on and hand out? These people agreed to a loan they should pay it back.

What exactly is your definition of "great?"

We can start by dramatically lowering the interest rates on the federally-granted loans. There is no reason the Department of Ed should be taking in billions in profits from people who are already burdened by heavy taxes and record high costs of living.

 

[CalGun]

I'd find it to be "great" if people including our country paid its debt and lived debt free. I actually find that to be great in my own life.

What exactly is your definition of "great?"

We can start by dramatically lowering the interest rates on the federally-granted loans. There is no reason the Department of Ed should be taking in billions in profits from people who are already burdened by heavy taxes and record high costs of living.

 

[imagep]

I'd find it to be "great" if people including our country paid its debt and lived debt free. I actually find that to be great in my own life.

What about companies? Should they be debt free?

 

[CalGun]

Its between them and their stock holders. If their debt cost the tax payers money (ie Solyndra) then its BS.

What about companies? Should they be debt free?

 

[Geoist]

I'd find it to be "great" if people including our country paid its debt and lived debt free. I actually find that to be great in my own life.

How is that possible when our monetary system is based on debt?

 

[CalGun]

Fundamental change isn't easy - I know it wasn't easy for me. I had to change my life style to get debt free.

How is that possible when our monetary system is based on debt?

 

[Robbie Loucks]

Why can't those who have jobs simply start paying more taxes

Majority of libertarians and conservatives:

...

"no"

 

[imagep]

How is that possible when our monetary system is based on debt?

Considering that we create money by lending into the economy, it may or may not be possible. The fed can lend to the private sector (buy purchasing debt), or they can lend to the federal government (by purchasing treasuries), so I'm assuming that it may be possible just to purchase debt from the banking/private sector and still have ample money in circulation, but that would possibly require purchasing a lot more public sector debt than they do now.

So I guess we could either have a debt free government, or a debt free private sector, but not both. If we tried for both, there would litterally be no money in existance because it would have all been repaid to the fed and destroyed.

 

[fmw]

Fundamental change isn't easy - I know it wasn't easy for me. I had to change my life style to get debt free.

I just had to get old enough.

 

[johndylan1]

Why can't those who have jobs simply start paying more taxes, and those without jobs enlist in the military; after 6 years of service in the military at 75% pay their debt can be considered paid. Why are all the solutions give, waive, pass on and hand out? These people agreed to a loan they should pay it back. Its a darn shame we lent these people money to begin with.

I don't see a student loan crisis. I see collusion between government and institutions of higher learning to bilk the young and impressionable out of a substantial portion of their pay. The crisis is in the ignorance of our young who were not taught financial responsibility but who were taught to take the easy way to reach their educational goals. To those of you who sign loans, pay them. To those of you who have guided a young person to take the loan, shame on you. Work hard and pay cash.

 

[imagep]

I don't see a student loan crisis. I see collusion between government and institutions of higher learning to bilk the young and impressionable out of a substantial portion of their pay. The crisis is in the ignorance of our young who were not taught financial responsibility but who were taught to take the easy way to reach their educational goals. To those of you who sign loans, pay them. To those of you who have guided a young person to take the loan, shame on you. Work hard and pay cash.

I see the consumers of a product (college education) being given the opportunity to acquire that product, and being expected to pay for what they use. I'm thankful that the bank lent me the money to purchase a house, I don't resent the fact that the bank expects me to pay the money that I borrowed back.

 

[sneakosview]

Why can't those who have jobs simply start paying more taxes, and those without jobs enlist in the military; after 6 years of service in the military at 75% pay their debt can be considered paid. Why are all the solutions give, waive, pass on and hand out? These people agreed to a loan they should pay it back. Its a darn shame we lent these people money to begin with.

You're going to make they're heads start spinning!

 

[johndylan1]

I see the consumers of a product (college education) being given the opportunity to acquire that product, and being expected to pay for what they use. I'm thankful that the bank lent me the money to purchase a house, I don't resent the fact that the bank expects me to pay the money that I borrowed back.

I agree with you here but the cost of education relative to it's monetary benefit only makes economic sense if it is paid in cash at low cost institutions, with the exception of a few Ivy leagues where prestige is an added benefit. The home loan is in exchange for a tangible asset that can be liquidated, while an education provides opportunity that may or may not return a premium.

 

[imagep]

I agree with you here but the cost of education relative to it's monetary benefit only makes economic sense if it is paid in cash at low cost institutions, with the exception of a few Ivy leagues where prestige is an added benefit. The home loan is in exchange for a tangible asset that can be liquidated, while an education provides opportunity that may or may not return a premium.

I don't have a problem with people borrowing for a college education because is the most valuable "product" that can be purchased, and it can never be reposesed, and it lasts a lifetime. What one does with it is up to them, just like what one does with their house or car or anything else that they purchase.

 

[johndylan1]

I don't have a problem with people borrowing for a college education because is the most valuable "product" that can be purchased, and it can never be reposesed, and it lasts a lifetime. What one does with it is up to them, just like what one does with their house or car or anything else that they purchase.

I agree with you concerning the value of education, my disagreement is on the method used to pay for it. There was a time when I agreed with the value in student loans, but the easy access to student loans is responsible for excessive education inflation, leaving borrows financially strapped for years or even decades in some cases. Student loan policies that allow loans for living expenses are particularly evil.

 

[DA60]

My solution?

Do nothing...they got themselves into it, now they can get themselves out of it.

If they can't...tough.

It's not like anyone put a gun to the heads of those that racked up these massive debts.