Student loan forgiveness act

[jsp132]

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http://news.yahoo.com/learn-student-loan-forgiveness-act-could-mean-165649082.html

i know it's in the pharmacy forum but most other medical pre med etc haven't replied

so i'd thought i'd post it here

granted like everyone else said it won't pass

but still shows the humongous problem of student loan debt pretty much outpacing everything else 👎

why must education cost so much? 😡

 

[MT Headed]

Wow with item #3 (PSLF after 5 years instead of 10) any doctor in a 5 year residency would have zero school debt after paying minuscule amounts of IBR. I don't think anybody would go into a 3 or 4 year residency if that was enacted.

"But but but you HAVE to give me that fellowship... I HAVE SCHOOL LOANS... I CAN'T AFFORD TO BECOME AN ATTENDING YET!!!"

 

[Dirt]

My math may be a little off, but why would the government pass a bill that would cost them about a bajillion dollars?

 

[DrMidlife]

My math may be a little off, but why would the government pass a bill that would cost them about a bajillion dollars?

If both conservative & progressive economic models show that the shift would produce a widespread impact via new spending, that can be spun as job creation and tax revenue increases.

Not that logic plays any role in legislative voting anymore. Sigh.

 

[flyaturtle]

But it's capped at $45k total forgiveness? Potentially a worse deal if you are planning on graduating with larger debt amounts.

 

[bluv1212]

But it's capped at $45k total forgiveness? Potentially a worse deal if you are planning on graduating with larger debt amounts.

can you post the source please?

 

[Terpskins99]

can you post the source please?

Dude, its in the OP's link.

 

[bluv1212]

Right. My bad. It's been a bit since i've visited this thread. Didn't think to check that. The way i'm reading it though is that the 10/10 repayment plan is just one of the options available. Isn't the plan of interest to SDN'rs the PSLF plan?

 

[freaker]

http://news.yahoo.com/learn-student-loan-forgiveness-act-could-mean-165649082.html

i know it's in the pharmacy forum but most other medical pre med etc haven't replied

so i'd thought i'd post it here

granted like everyone else said it won't pass

but still shows the humongous problem of student loan debt pretty much outpacing everything else 👎

why must education cost so much? 😡

Why must education cost so much? Because universities continue to build more and more pretty buildings with an unlimited supplies of money with unlimited supply of applicatons, a sympathetic media, and an economic model that has gone off the supply-demand rails. Students don't like the 10-year old gym? Build a humongous, multimillion dollar one with spas and whatever else. That's what my alma mater did. They never stopped building--never stopped increasing the size of the flower gardens, never stopped hiring, never seemed to act as if there was a recession going on.

This bill is horrendous and does nothing to address the underlying problem. Universities will continue to jack up the costs of education indefinitely as long as students have an unlimited supply of student loans and as long as students consider loans "free money."

There's the other issues that states (who are required to have balanced budgets) are being hit with more regulations by a federal government (who doesn't even bother passing a budget or half-the-time even putting one up for a vote) and are having to cut funding to universities, who subsequently pass on the bills to students, all to be paid for with loans provided by the federal government, which just borrows more money from China (money that never existed, but is printed out of the air by the federal reserve, I'll note.).

Then there's the whole concept of social engineering in which universities pick winners and losers and dole out money through redistribution to particular students by raising tuition on everyone else.

I'll note that student loan interest rates were at 2-3% until the federal government chose to take over the student loan industry and raised the rates to 6.8%.

The final matter I'll mention (oh yes, there's more) is loan program continues to incentivize students majoring in degrees of questionable utility as opposed to getting an engineering degree or what have you where you can actually afford to pay for your student loans. Yet again, productivity gets penalized while the guy who floats through life with a sociology degree and wonders (as he wanders) why he can't get a job gets his loans paid off by the government while working in Starbucks.

Enough of a rant? 😀

I do think you make a valid point: the run-up on student loans is unsustainable, a bubble, and one that needs to be popped. I frankly have refused to contribute a dime to my alma mater after they so generously decided to double tuition since I graduated in 2002. There's no reason a university should cost more than the US GDP per family income. None.

Were I a Congressman, I'd laugh. This bill simply subsidizes bad behavior and makes little economic sense whatsoever.

 

[plauto]

Why must education cost so much? Because universities continue to build more and more pretty buildings with an unlimited supplies of money with unlimited supply of applicatons, a sympathetic media, and an economic model that has gone off the supply-demand rails. Students don't like the 10-year old gym? Build a humongous, multimillion dollar one with spas and whatever else. That's what my alma mater did. They never stopped building--never stopped increasing the size of the flower gardens, never stopped hiring, never seemed to act as if there was a recession going on.

This bill is horrendous and does nothing to address the underlying problem. Universities will continue to jack up the costs of education indefinitely as long as students have an unlimited supply of student loans and as long as students consider loans "free money."

There's the other issues that states (who are required to have balanced budgets) are being hit with more regulations by a federal government (who doesn't even bother passing a budget or half-the-time even putting one up for a vote) and are having to cut funding to universities, who subsequently pass on the bills to students, all to be paid for with loans provided by the federal government, which just borrows more money from China (money that never existed, but is printed out of the air by the federal reserve, I'll note.).

Then there's the whole concept of social engineering in which universities pick winners and losers and dole out money through redistribution to particular students by raising tuition on everyone else.

I'll note that student loan interest rates were at 2-3% until the federal government chose to take over the student loan industry and raised the rates to 6.8%.

The final matter I'll mention (oh yes, there's more) is loan program continues to incentivize students majoring in degrees of questionable utility as opposed to getting an engineering degree or what have you where you can actually afford to pay for your student loans. Yet again, productivity gets penalized while the guy who floats through life with a sociology degree and wonders (as he wanders) why he can't get a job gets his loans paid off by the government while working in Starbucks.

Enough of a rant? 😀

I do think you make a valid point: the run-up on student loans is unsustainable, a bubble, and one that needs to be popped. I frankly have refused to contribute a dime to my alma mater after they so generously decided to double tuition since I graduated in 2002. There's no reason a university should cost more than the US GDP per family income. None.

Were I a Congressman, I'd laugh. This bill simply subsidizes bad behavior and makes little economic sense whatsoever.

Amen!

 

[freaker]

Just to add to my little rant, I see my medical school has taken it upon itself to increase tuition by $10,000 per year since I graduated---3-years ago! Really?! The cost of education went up by 50% in 3-years?

It's to the point that it's insulting.