Affordability of College - Issue?

[Henry Hawk]

another bubble about to bust...........government intervention strikes again.

[Palehorse]

another bubble about to bust...........government intervention strikes again.

Republican induced surrounding government tuition rates to say the least.

The federal government historically has made college available to the average individual via it's low rate student loan programs, but it isn't the only way to obtain funding for college. One can obtain a loan from a bank and other lending institutions but be prepared for stringent credit guidelines and outrageous interest rates if you choose that path. Hence the federal government has been the most popular means of funding college.

But no more. . . with government doubling interest rates, yeah; the dumbing down of Amerika will continue!

[Palehorse]

How did you pay for your college education?

[Henry Hawk]

How did you pay for your college education?

I paid for them, along with my current employer.

[Palehorse]

The company I worked for paid for my education to receive my credentials.

Exactly. And had they not?

The reality is the lion's share of students leave high-school with no job and with no college fund from their parents available. So, the parents sometimes co-sign for a student loan to cover the expenses. And most, but not all parents, pursue the lowest interest rates in order to fund their children's college education. . . So do the kids.

[Henry Hawk]

Exactly. And had they not?

The reality is the lion's share of students leave high-school with no job and with no college fund from their parents available. So, the parents sometimes co-sign for a student loan to cover the expenses. And most, but not all parents, pursue the lowest interest rates in order to fund their children's college education. . . So do the kids.

I'm not knocking students or the parents for taking advantage of this....but, the fact is, another Bubble is about the burst.

[Palehorse]

I'm not knocking students or the parents for taking advantage of this....but, the fact is, another Bubble is about the burst.

And again, it is being induced by the conservative republican war on the middle class. This unreasonable doubling of the student loan interest rates amounts to funding of the rich on the back of the poor; because the poor are the only ones using the programs.

The financial administrators of these government programs will skim more cream off the top. The rich get richer and the poor continue to be oppressed.

[Henry Hawk]

I'm not going to go any further, but to say this.  IF we would have just allowed private banks to determine the loans without government interference and let the people decide for themselves if they can afford it or not.  If we would quit subsidizing the colleges and forcing them to mandate certain classes on all students...college may just have been affordable to the majority of families.
Comom sense no longer applies...but the mighty dollar does.  I think it was good intentions by democrats to start subsidizing colleges to allow more people to attend college, but greed always wins out...and it is not just a republican thing.....it is the good intention of republicans to apply common sense back into our daily lives, and keeping government out of things....because history has proven several times the when they get involved too heavily, the common man gets screwed.

[Palehorse]

. . .Federal subsidies for higher education began in 1862 with the Morrill Act, which provided grants of federal land to the states. The states were supposed to use the proceeds of land sales to create colleges focused on agricultural and mechanical studies, but "many states squandered the revenue from this endowment."2 In 1890, a second Morrill Act began regular appropriations for the land-grant colleges.

In 1917, Congress passed the Smith-Hughes Act, which funded the salaries of vocational education teachers. The Act imposed a range of detailed rules on funded schools, which created an early precedent for today's huge burden of federal regulations on state and local education systems.

The first major subsidy for students in higher education was the Servicemen's Readjustment Act of 1944—the G.I. Bill—which allowed World War II veterans to attend college at no cost. The G.I. Bill is widely admired legislation, but like all subsidy programs it led to substantial wasteful spending and abuse. Some colleges and universities used federal funds for extraneous purposes, such as swimming pools and stadiums, while others increased tuition rates charged to veterans.3 There were also cases of outright fraud by schools aimed at garnering extra federal funds.

In 1958, the National Defense Education Act was approved in response to the Soviet Union's launch of Sputnik, which spread fear that the communists were getting ahead of Americans in technical skills. The Act authorized funding for higher education loans and fellowships, vocational teacher training, and programs in the K-12 schools, including math, science, and foreign language activities.

The year 1965 was a landmark for federal expansion into both the K-12 schools and higher education. The Higher Education Act of 1965 is the basis for many of today's postsecondary education subsidies, including student loan and grant programs, college library aid, teacher training programs, and other subsidies.

Since 1965, the federal government has provided increasing amounts of funding for higher education as grant and loan programs have been expanded, and new programs added. Federal aid for higher education soared from $10 billion in fiscal 2000 to $30 billion in fiscal 2008.4

Of the total $30 billion in 2008, $2.3 billion went toward higher educational institutions, including large shares to Gallaudet College and Howard University. The remaining $27.6 billion went toward student aid: $5.5 billion for direct student loans made by the government, $4.9 billion for federally guaranteed loans made by private lenders, $15.7 billion for grants, and the rest for federal administration.5 Note that the figures for loans are the net amount of federal support, based on assumptions about loan repayments. The gross amount of loans is much larger—in fiscal 2008, the gross amount of loans was $110 billion.6

In recent years, Congress has expanded subsidies for higher education. The College Cost Reduction and Access Act of 2007 cut interest rates on federally subsidized loans in half, thus encouraging more student borrowing. The Ensuring Continued Access to Student Loans Act of 2008 increased the borrowing limits on certain student loans and gave the Department of Education new authority to fund student lending. In 2008, Congress increased Pell Grant maximums from $5,800 to $8,000 over time, authorized forgiveness of up to $10,000 in federal loans for people working in an area of "national need," and expanded other subsidies.

In 2009, President Obama proposed to eliminate all student loans through private financial firms guaranteed by the government, and thus make all federal loans "direct loans" from the Treasury. He also proposed to increase Pell grants and to budget for them as an "entitlement" program, thus putting spending on automatic pilot and not needed annual budgeting action from Congress.   

Outside of the Department of Education, the federal government offers other aid programs for higher education, such as tuition assistance for military personnel in the Department of Defense. Also, the federal government funds more than $30 billion of research at the nation's universities through various departments. 7

Finally, a growing part of federal support for education comes through the tax code. In 1995, there were just 7 special breaks in the income tax code for K-12 and higher education. Today, there are 16 breaks, including the lifetime learning tax credit, Hope scholarship, education savings accounts, and education facility bonds. Politicians of both parties continue to offer more breaks, so the tax code will likely get more crowded with such giveaways.
. . .

http://www.downsizinggovernment.org/education/higher-ed-subsidies

So it appears that the government has recognized the importance of higher education for over a century, and has been subsidizing it for the same amount of time. Moreover, the same party that cut student loan rates by 50% now wants to double them!

[Henry Hawk]

So it appears that the government has recognized the importance of higher education for over a century, and has been subsidizing it for the same amount of time. Moreover, the same party that cut student loan rates by 50% now wants to double them!

that is propaganda and a fib!

Show me where they want to double them?.....Just because they didn't sign the last bill introduced?

The fact of the matter is the interest of the current student loan was nothing more than a political time bomb that our democrat controlled congress put into motion back in 2007 with an expiration date "conveniently'  just before our election time, so the dems can make it a distraction from our economy, which is the REAL problem for our students who cannot find a job AFTER graduating.  PURE politics by the dems.

[Palehorse]

that is propaganda and a fib!

Show me where they want to double them?.....Just because they didn't sign the last bill introduced?

The fact of the matter is the interest of the current student loan was nothing more than a political time bomb that our democrat controlled congress put into motion back in 2007 with an expiration date "conveniently'  just before our election time, so the dems can make it a distraction from our economy, which is the REAL problem for our students who cannot find a job AFTER graduating.  PURE politics by the dems.

Bon voyage then!

[Henry Hawk]

Bon voyage then!

Great answer!

[Palehorse]

that is propaganda and a fib!

Show me where they want to double them?.....Just because they didn't sign the last bill introduced?

The fact of the matter is the interest of the current student loan was nothing more than a political time bomb that our democrat controlled congress put into motion back in 2007 with an expiration date "conveniently'  just before our election time, so the dems can make it a distraction from our economy, which is the REAL problem for our students who cannot find a job AFTER graduating.  PURE politics by the dems.

http://money.cnn.com/2012/05/08/pf/college/Congress-student-loans/index.htm

http://www.upi.com/Top_News/US/2012/05/25/Student-loan-interest-rates-set-to-double/UPI-65771337932800/

Seriously? I'm a liar now?

Please explain what portion of this is a lie:

. . .Federal subsidies for higher education began in 1862 with the Morrill Act, which provided grants of federal land to the states. The states were supposed to use the proceeds of land sales to create colleges focused on agricultural and mechanical studies, but "many states squandered the revenue from this endowment."2 In 1890, a second Morrill Act began regular appropriations for the land-grant colleges.

In 1917, Congress passed the Smith-Hughes Act, which funded the salaries of vocational education teachers. The Act imposed a range of detailed rules on funded schools, which created an early precedent for today's huge burden of federal regulations on state and local education systems.

The first major subsidy for students in higher education was the Servicemen's Readjustment Act of 1944—the G.I. Bill—which allowed World War II veterans to attend college at no cost. The G.I. Bill is widely admired legislation, but like all subsidy programs it led to substantial wasteful spending and abuse. Some colleges and universities used federal funds for extraneous purposes, such as swimming pools and stadiums, while others increased tuition rates charged to veterans.3 There were also cases of outright fraud by schools aimed at garnering extra federal funds.

In 1958, the National Defense Education Act was approved in response to the Soviet Union's launch of Sputnik, which spread fear that the communists were getting ahead of Americans in technical skills. The Act authorized funding for higher education loans and fellowships, vocational teacher training, and programs in the K-12 schools, including math, science, and foreign language activities.

The year 1965 was a landmark for federal expansion into both the K-12 schools and higher education. The Higher Education Act of 1965 is the basis for many of today's postsecondary education subsidies, including student loan and grant programs, college library aid, teacher training programs, and other subsidies.

Since 1965, the federal government has provided increasing amounts of funding for higher education as grant and loan programs have been expanded, and new programs added. Federal aid for higher education soared from $10 billion in fiscal 2000 to $30 billion in fiscal 2008.4

Of the total $30 billion in 2008, $2.3 billion went toward higher educational institutions, including large shares to Gallaudet College and Howard University. The remaining $27.6 billion went toward student aid: $5.5 billion for direct student loans made by the government, $4.9 billion for federally guaranteed loans made by private lenders, $15.7 billion for grants, and the rest for federal administration.5 Note that the figures for loans are the net amount of federal support, based on assumptions about loan repayments. The gross amount of loans is much larger—in fiscal 2008, the gross amount of loans was $110 billion.6

In recent years, Congress has expanded subsidies for higher education. The College Cost Reduction and Access Act of 2007 cut interest rates on federally subsidized loans in half, thus encouraging more student borrowing. The Ensuring Continued Access to Student Loans Act of 2008 increased the borrowing limits on certain student loans and gave the Department of Education new authority to fund student lending. In 2008, Congress increased Pell Grant maximums from $5,800 to $8,000 over time, authorized forgiveness of up to $10,000 in federal loans for people working in an area of "national need," and expanded other subsidies.

In 2009, President Obama proposed to eliminate all student loans through private financial firms guaranteed by the government, and thus make all federal loans "direct loans" from the Treasury. He also proposed to increase Pell grants and to budget for them as an "entitlement" program, thus putting spending on automatic pilot and not needed annual budgeting action from Congress.   

Outside of the Department of Education, the federal government offers other aid programs for higher education, such as tuition assistance for military personnel in the Department of Defense. Also, the federal government funds more than $30 billion of research at the nation's universities through various departments. 7

Finally, a growing part of federal support for education comes through the tax code. In 1995, there were just 7 special breaks in the income tax code for K-12 and higher education. Today, there are 16 breaks, including the lifetime learning tax credit, Hope scholarship, education savings accounts, and education facility bonds. Politicians of both parties continue to offer more breaks, so the tax code will likely get more crowded with such giveaways.
. . .

http://www.downsizinggovernment.org/education/higher-ed-subsidies

So it appears that the government has recognized the importance of higher education for over a century, and has been subsidizing it for the same amount of time. Moreover, the same party that cut student loan rates by 50% now wants to double them!

And where've you been, (which planet), surrounding the student loan interest rate doubling?

[The Troll]

  As far as education goes, I would like to see America do what India has done but 4 places and 4 times larger.  India has a college that takes young people from all over India with the highest intelligence.

  They take the young people, feed, cloth, feed and education for free.  The only thing is they have to stay in India to work and provide new technology for India.

  If we can have a West Point, have Annapolis, the Air force academy and a Coast Guard Academy why can't we have 4 civilian academy located in the North, East, South and the West.

  I would like to see the brains and inventors these college would produce.    Hell, while we at it let's make 5 Academies, one in the middle of the of America and let all taxpayers pay for it.  IT IS FOR AMERICA and our future health. 

[me]

  As far as education goes, I would like to see America do what India has done but 4 places and 4 times larger.  India has a college that takes young people from all over India with the highest intelligence.

  They take the young people, feed, cloth, feed and education for free.  The only thing is they have to stay in India to work and provide new technology for India.

  If we can have a West Point, have Annapolis, the Air force academy and a Coast Guard Academy why can't we have 4 civilian academy located in the North, East, South and the West.

  I would like to see the brains and inventors these college would produce.    Hell, while we at it let's make 5 Academies, one in the middle of the of America and let all taxpayers pay for it.  IT IS FOR AMERICA and our future health. 

Ya, and you can live like the average person does who lives in India I know you'd love that.