US government monopolizes student-loan sector, directly subsidizes colleges - price will go up furth

[Saffire]

http://www.reuters.com/article/idUSTRE62T1FX20100330

 

In a move sure to please idiots who don't understand basic economics, as well as college presidents, Our Glorious Leader monopolized the student-loan business:

 

(Reuters) - President Barack Obama on Tuesday will sign into law an overhaul of the college student loan program which cuts commercial banks out of the student loan business, drying up a multibillion dollar profit stream.

 

U.S.

 

The student loan overhaul fulfills a long-time goal of Democratic lawmakers to end the bankers' role as middlemen and replace them with direct federal loans and aid to students.

 

The White House said the change would save taxpayers $68 billion over the next decade. The money saved will help expand and strengthen the federal Pell Grant program for students.

 

The change will cap college graduates' annual student loan repayments at 10 percent of their income, spends more at community colleges and awards $2.55 billion to historically black colleges and universities.

 

Obama's fellow Democrats in the Senate and House of Representatives got the measure through Congress by tucking it into a package of changes approved last Thursday to the sweeping U.S. healthcare overhaul.

 

While the healthcare overhaul itself has generated skepticism among many Americans worried about its cost and associated debt, the student loan changes have been popular.

 

The CNN/Opinion Research Corporation said last week a telephone survey of 1,030 adult Americans found 64 percent of respondents approved it, while 34 percent opposed it.

 

Obama is to sign the measure at an event at Northern Virginia Community College in nearby Alexandria.

 

"Year after year, we've seen billions of taxpayer dollars handed out as subsidies to the bankers and middlemen who handle federal student loans, when that money should have gone to advancing the dreams of our students and working families," Obama said in his weekly radio and Web address on Saturday.

 

He said previous efforts to change the program had been thwarted by "special interests that fought tooth and nail to preserve their exclusive giveaway."

 

While student groups and Democratic lawmakers have backed the overhaul, student loan giant Sallie Mae and other private lenders have staunchly opposed it.

 

Opponents say the action will reduce students' lending options and eliminate the jobs of thousands of private lenders, hurting efforts to remedy an ailing U.S. economy that has a 9.7 unemployment rate.

 

A number of lawmakers, most Republicans, opposed the measure, saying it would end a successful program and amount to an unwarranted federal takeover of the student loan industry.

 

Private lenders would still have a role, albeit a greatly diminished one, in servicing loans, such as helping collect payments.

 

[jenflor]

how will this cause prices to "go up further"?

[Buxus vahlii]

how will this cause prices to "go up further"?

 

I have the same question.

[Matter-Eater Lad]

I love paying more for things. Don't be a greedy capitalist!

 

how will this cause prices to "go up further"?

 

More loans and government money will flow into colleges. When there is more money flowing into a sector of the economy it's inflation, when there is inflation to get a real profit prices have to rise.

If government stayed out, the colleges wouldn't be able to get their hands on as much money, forcing them to lower prices to draw more people in to get the money they need.

 

There has been a proven direct correlation between money flows and prices in areas of the economy.

If more money would be forced into toilet paper, the prices of toilet paper would rise, it's simple economics.

 

Once more government bullshit has raised prices, making it harder for me. Oil hit a new 52 week high today because of the carry trade. So I'm paying more for my damn school, food, energy, taxes are going up because Florida is being forced illegally by the Federal government to raise an extra 1 billion dollars for health care.

 

Robbing Peter to pay Paul, or just shifting things around in the end always screws over the little people.

[Buxus vahlii]

I love paying more for things. Don't be a greedy capitalist!

 

 

I see money as more of a negative force then a positive one.

[Saffire]

I see money as more of a negative force then a positive one.

 

To quote Ayn Rand:

 

"When money ceases to be the tool by which men deal with one another, then men become the tools of men. Blood, whips and guns--or dollars. Take your choice--there is no other--and your time is running out."

[Matter-Eater Lad]

I see money as more of a negative force then a positive one.

 

Money is neither positive or negative. It is what you make it to be, you can use it well and let it be something positive or let it use you.

[Buxus vahlii]

I honestly believe the things you own end up owning you, I said this to myself before Tyler Durden did in the novel/movie Fight Club. I personally am to spoiled to give up the things I own because I've grown so accustom to them, my modern American lifestyle. I wouldn't label myself as a hippie because I don't believe in "free love", heavy drug use and so on....

 

I believe the human race in general is a complete mess. The way we kill each other over greed, "religion" over a god that we don't even know is fact, our overall view on life, the way we would actually "die for our countries"

 

I don't know if there really is a label for what I am which is good, I believe in Individualism.

 

This is probably why I loved the movie Avatar so much, if I was put in his situation (main character) I wouldn't even think twice about joining them and killing the humans that were invading their planet.

[Reilly]

Please, oh please stop spreading your opinions over the interwebz.

[Saffire]

I honestly believe the things you own end up owning you, I said this to myself before Tyler Durden did in the novel/movie Fight Club. I personally am to spoiled to give up the things I own because I've grown so accustom to them, my modern American lifestyle. I wouldn't label myself as a hippie because I don't believe in "free love", heavy drug use and so on....

 

I believe the human race in general is a complete mess. The way we kill each other over greed, "religion" over a god that we don't even know is fact, our overall view on life, the way we would actually "die for our countries"

 

I don't know if there really is a label for what I am which is good, I believe in Individualism.

 

This is probably why I loved the movie Avatar so much, if I was put in his situation (main character) I wouldn't even think twice about joining them and killing the humans that were invading their planet.

 

Right, but your views are your own. Your path to happiness might be different from other peoples'. It is the task of the individual to use trial-and-error action, as well as a priori reasoning, to discover the best way to achieve personal satisfaction, or happiness.

 

If you conclude that the pursuit of money for its own sake won't make you happy, then you can realign your future actions with that in mind. You can even recommend that others try the same course of action, but you cannot force it on others, or even deride others for not making a similar decision to yourself. It is the same as choosing between chocolate or vanilla ice cream.

 

And I enjoyed Avatar also, because it attacks the use of force/coercion in exchange, and upholds private property rights. Even if James Cameron didn't intend it to send that message.

[Buxus vahlii]

Right, but your views are your own. Your path to happiness might be different from other peoples'. It is the task of the individual to use trial-and-error action, as well as a priori reasoning, to discover the best way to achieve personal satisfaction, or happiness.

 

If you conclude that the pursuit of money for its own sake won't make you happy, then you can realign your future actions with that in mind. You can even recommend that others try the same course of action, but you cannot force it on others, or even deride others for not making a similar decision to yourself. It is the same as choosing between chocolate or vanilla ice cream.

 

And I enjoyed Avatar also, because it attacks the use of force/coercion in exchange, and upholds private property rights. Even if James Cameron didn't intend it to send that message.

 

Very much agree with this post. I never force my opinions on others (well at least in person), when it comes to religion, money, anything. Another side of me says that Earth is what it is and I might as well make the most of it, there are a lot of good things on Earth as well...

 

I think the message with Avatar was more along the lines of Patriotism can sometimes be the same as Fascism.

[Buxus vahlii]

This is why I wish I could just; leave...

 

http://www.infowars.com/alex-jones-reviews-avatar/

[Black Rose]

I find it kinda funny, in america student loans are going to be run by the governement, whereas the student loan book and company in the UK is going to be sold to the 2nd highest bidder in Gordi's latest round of fucking up the country even more before he finds himself out of a job.

 

Roll on May 6th*

 

(*okay an election hasn't been formally called, but it's rumoured to be the 6th May)

[the_gloaming09]

at this point why don't we just let the government take over everything else

[Black Rose]

Lets allow them to take over your lifes, so you can't do anything on their banned list.

[yeahhright]

I'm confused. Maybe one of you could somewhat explain?

 

I'm starting college next year and will depend on loans to go anywhere, even my local community college. How will these changes affect my being able to get loans and the payment of any loan I get? Or that my parents get on my behalf?

[Buxus vahlii]

^ Nobody has explained this :(

[Saffire]

Basically the difference is who will be lending you the money (the government or the bank). So you don't need to worry - you'll still get a loan, and the cost of your college won't be very different. But the law will change the economics of the loan business in the next ten years. It just won't be instant.