Student Loans Should Have Same Rate Big Banks Get

[Political Junky]

Sen. Warren is right, we should give students the same advantage we give Big Banks.
^^
My comment.

Elizabeth Warren: Student Loans Should Have Same Rate Big Banks Get

WASHINGTON -- Sen. Elizabeth Warren (D-Mass.) unveiled her first bill Wednesday, designed to set student loan interest rates at the same level the Federal Reserve offers to big banks.

With some student loan rates set to double on July 1 -- from 3.4 percent to 6.8 percent -- Warren's bill would reduce student loan interest rates to 0.75 percent, opening the Fed's discount window to students.

"Every single day, this country invests in big banks by lending them money at near-zero rates," Warren told The Huffington Post. "We should make the same kind of investment lending money to students, who are trying to get an education."
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[waltky]

Another bailout coming?...

Outstanding Balance on Federal Student Loans Tops $600 Billion--Up 250% Under Obama
May 15, 2013 - The outstanding balance for all of the direct student loans the federal government has issued topped $600 billion in April, according to newly released data from the U.S. Treasury.

The total balance hit $600.457 billion by the end of April, says the Treasury, up from $592.142 billion at the end of March. The Federal Direct Student Loan Program already has built-in debt forgiveness plans for people who end up earning low incomes or for those who entered lines of work preferred by the government. In January 2009, when Obama was inaugurated, the balance was $119.803 billion and has since increased more than fivefold. The $480.654 billion increase since January 2009 in what is owed to the Treasury in direct student loans represents a climb of about 250 percent in just over four years.

Before Obama's first term, federally guaranteed student loans were made both by the government directly and by private lenders using their own capital through what was called the Federal Family Education Loan program. Language inserted into the the Obamacare law signed in March 2010, however, abolished the latter type of federally guaranteed student loan, giving the U.S. Treasury a monopoly over those loans.

As the Congressional Research Service has described it, this Obamacare provision made the U.S. Treasury the exclusive "banker" for federally guaranteed student loans. Thus, U.S. taxpayers essentially own these loans. "The DL [Direct Loan] program uses a different administrative structure and draws on a different source of capital than was used in the FFEL program," said a CRS report published earlier this year. "Under the DL program, the federal government essentially serves as the banker--it provides the loans to students and their families using federal capital (i.e., funds from the U.S. Treasury), and it owns the loans." If the students who have borrowed the current outstanding balance of $600 billion in federal direct student loans default on those loans--or if Congress forgives them their debts--the burden of that $600 billion loss will fall on U.S. taxpayers.

According to the Congressional Research Service, the federal student loan program maintains what it calls an "Income-Contingent Repayment Plan." This includes "the prospect of debt forgiveness for those who experience prolonged periods with low incomes." Additionally, says the Congressional Research Service, federal direct student loans are "forgiven, cancelled or repaid as an incentive for entering certain occupations or professions, or for performing certain types of public service."

Source

 

[Lakhota]

Why are students getting screwed?

 

[ShootSpeeders]

The govt can't do anything right. Don't let them regulate student loan rates. BTW - where does the constitution give the feds such power? It doesn't and that means this is a state issue.

 

[Mr. H.]

I was about to post something regarding the refinancing of student loan debt.
Then I realized... where's the fucking collateral?

Leveraging future equity has never been such a great idea.

 

[MeBelle]

Why are students getting screwed?

Cause Congress is a joke and can't work together.

New rates won't kick in for six weeks. The last week before they kick in we'll all see another 'crisis'.

 

[AmazonTania]

Elizabeth Warren is totally clueless. Naturally, she would be unaware that the Federal Reserve pays banks interest not to make loans or investments.

 

[AmazonTania]

Why are students getting screwed?

Because no one will let the laws of Supply and Demand work.

 

[whitehall]

When is the left going to quit the whining about having to pay back the money they borrowed from taxpayers like me? Join the Military like I did and get a free education you freaking slackers.

 

[Political Junky]

Why are students getting screwed?

My guess, there is no value placed on education, but lots placed on banking.
Thus, the US continues to be bypassed in education by other countries.

 

[Obamanation]

at least the socialists are back in agreement that they should have to pay for their education. That's a huge step back towards reality from the OWS days...

anybody remember that? The soros funded "grass roots" movement --- where are they now? lol

 

[The Rabbi]

Hey why stop there? Car owners should get the same rate as banks. Homeowners should get the same rate as banks. Credit card holders should get the same rate as banks. There should be one interest rate in the U.S. that everyone pays!

Yeah. Of course that would cut off credit to everyone else but libs flunked econ 101 as well as math.

 

[AmazonTania]

Why are students getting screwed?

My guess, there is no value placed on education, but lots placed on banking.

I guess by no value, you mean a blank check...

Thus, the US continues to be bypassed in education by other countries.

No, the US is continually bypassed because it's inhabited by individuals who are not very smart...

 

[OriginalShroom]

Why should student loans be artificially low?

Why is it the Government's job to decide who get's a student loan and who doesn't?

 

[Darkwind]

All you liberals can impress Me with your concern when you show the same level of horror at the involuntary debt load that is placed on a person the moment they draw their very first breath. I think right now, that figure stands at 73,000 dollars. What is the interest on that?

But then, student loans are voluntary so they should be given greater priority, right?

I have student loans, will probably be taking even more. I would settle with just leaving the rate at its present level. There is no need to reduce it, increase it, or even fuck with it at all.

 

[AmazonTania]

Why should student loans be artificially low?

Why is it the Government's job to decide who get's a student loan and who doesn't?

Actually, everyone gets a student loan. This is why they are called 'Government Guaranteed Student Loans.'

And because everyone can get one, the price of tuition will never go down.

 

[Quantum Windbag]

Sen. Warren is right, we should give students the same advantage we give Big Banks.
^^
My comment.

Elizabeth Warren: Student Loans Should Have Same Rate Big Banks Get

WASHINGTON -- Sen. Elizabeth Warren (D-Mass.) unveiled her first bill Wednesday, designed to set student loan interest rates at the same level the Federal Reserve offers to big banks.

With some student loan rates set to double on July 1 -- from 3.4 percent to 6.8 percent -- Warren's bill would reduce student loan interest rates to 0.75 percent, opening the Fed's discount window to students.

"Every single day, this country invests in big banks by lending them money at near-zero rates," Warren told The Huffington Post. "We should make the same kind of investment lending money to students, who are trying to get an education."
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I didn't know anyone was so stupid that they actually believed this.