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Why is the interest rate on subsidized Stafford loans expected to double?

Discussion in 'Current Events' started by SOS, Apr 25, 2012.

  1. SOS

    SOS ONA
    Wackbag Staff

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    AP

    Q: Why is the interest rate on subsidized Stafford loans expected to double?

    A: Acting on a Democratic campaign promise in 2006, Democrats in 2007 crafted the law to progressively lower the interest rate from 6.8 percent to the 3.4 percent rate — where it is this school year — and then return to the original 6.8 percent in 2012. Republican President George W. Bush signed the deal into law after it was approved by bipartisan but Democratic-heavy majorities in both chambers. Congress wrote the law this way for one simple reason, says Jason Delisle, director of the federal education budget project at the New America Foundation: cost. It would cost an additional $6 billion annually to keep the interest rate at 3.4 percent.
     
  2. MayrMeninoCrash

    MayrMeninoCrash Liberal Psycopath

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    Fixed.
     
  3. Don the Radio Guy

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    I'm pretty sure that's the point he was making. Democrats wanted to manufacture campaign issues and Bush was in full "let's get along" mode by then. Romney is smart for going along with keeping the rate down, but I guarantee his position is going to be misrepresented by the usual suspects here and in the media.
     
  4. MayrMeninoCrash

    MayrMeninoCrash Liberal Psycopath

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    So should I be outraged or not? What's FOX news' position on this?
     
  5. Party Rooster

    Party Rooster Unleash The Beast

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    So he didn't previously support gutting the Department of Education, slashing Pell Grants and not having taxpayer-subsidized loans? "whaa"

    [​IMG]
     
  6. MagicBob

    MagicBob Registered User

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    Obama did it, so it is HAS to be bad... duhh....:action-sm

    it will add the the deficit, its socialist scheme to subsidize all higher education, it snobbish to want to send people to college, colleges are just leftist indoctrination factories.... on and on and on... :action-sm
     
  7. Lord Zero

    Lord Zero Viciously Silly

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    Most of them are when it comes to history courses and political science courses and the like as well as with things like speech codes and the overemphasis on diversity.
     
  8. Don the Radio Guy

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    Nothing like being proven right in the very next post.
     
  9. Psychopath

    Psychopath Plata O Plomo

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    Because the government is run by cunts.
     
  10. Party Rooster

    Party Rooster Unleash The Beast

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    Or proven wrong, again and again...

    I guess that's great if you've got a rich daddy you can just borrow from instead of having to resort to getting student loans...

     
  11. Don the Radio Guy

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    God forbid someone suggest people actually pay for school themselves.
     
  12. MagicBob

    MagicBob Registered User

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    no one has suggested you dont pay for school yourself. Someone doesnt get the idea behind a LOAN (here is hint, they have to be paid back).
     
  13. VMS

    VMS Victim of high standards and low personal skills.

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    We've got two major problems, here:

    1.) Collegiate education has become devalued. As a tool for getting a better job, so many people are getting into/going to college that it's become a prerequisite for jobs that don't require a college education to handle. Instead of paving the way for people who should go to college but can't afford to, the Stafford loan program has just made it easier for kids to spend 4-5 years partying on a college campus to get their American Studies degree that doesn't mean jack shit in the job market except that you've earned a piece of paper.

    2.) Collegiate education is a business, now more than ever. Colleges are more about being diploma mills than they are about educating their students.

    Universities were never meant to be trade schools, to teach their students how to do a particular job. They've morphed into that over the decades, but universities were meant to broaden their students' minds, to give them a broad-based education. Basically, to turn you into that douchebag at a dinner party who can compare and contrast Scipio Africanus with Norman Schwarzkopf, discuss string theory, and which Beatles album was the second best (Abbey Road was obviously the best).

    At some point, a university education became a prerequisite for you to be a cubicle drone.

    Seriously, why did Sam Roberts need to go to Syracuse University (tuition appx $35k/yr) to do what he does? Did they seriously teach him how to talk on air in a way that the broadcast school that Don went to (that even he thinks was overrated) couldn't? Roberts had somewhere around $200k in costs (counting room, board, books, etc.) to play songs from a playlist and babble on air for a couple of hours a day. He's reasonably good at it, but did any of that really require 4 years at Syracuse? And Syracuse has a GREAT communications program (which I assume is what Roberts was in) and Roberts actually got a job in his major!

    Other than those who used it as a stepping stone to law school, do you know how many Virginia Tech Political Science majors (my major in college) I know who actually have a job related to polisci? One. A buddy of mine is a lobbyist for the ESA (Entertainment Software Association). Everyone else I graduated with or just took classes with had to get more expensive schooling or is doing something unrelated to polisci.

    I'm not saying a university education is worthless. I wouldn't trade mine for anything. But it's something for me, not for my work or anything like that. College was 4 years of enriching educational experiences that were for me. I could be doing what I'm doing today if I dropped out of high school.

    I think we're all agreed: college is a waste of time if you don't know what you want to do with your life. If you're hell-bent on becoming a doctor or a lawyer or an engineer or something that really requires a college degree to DO the job, great! Your family should move Heaven and Earth to make it work for you. But if you're going to go to college to take underwater basketweaving for four years, fuck off. And if you're going to require a federally guaranteed loan (which will cost the government a lot of money if you default, double fuck off.

    The Stafford program looks good on paper. But when a college education reached the tipping point to where it became a babysitting service for 18-22 year olds, the government programs should have been adjusted to match that reality. They haven't. Now the loans, the Pell grants and all the rest of them are nothing more than middle class welfare that does a little good for those who have genuine ambition and desire that a college education serves.

    Seriously, how many of you have gone to college in the last 30 years? Virtually everyone you knew there was on Pell grants, federally guaranteed loans, or a combination of the two. Now how many of your fellow college students were the people that those programs were set up for? How many were the poor, I-wouldn't-go-to-college-if-it-weren't-for-these-loans-and-I'm-damn-well-going-to-MAKE-something-of-myself! kids? And how much of that money is just going to expand the horizons of someone who's just going to be another cubicle drone? Why are we spending government money for no useful economic or sociological purpose?

    As to the current "crisis", whatever. It's politics, played by both sides of the aisle. Fine. I can't get worked up about it. Playing politics with a broken system that has turned our system of higher learning into a young adult babysitting service doesn't get me worked up.
     
  14. Don the Radio Guy

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    I didn't go to a broadcast school. I went to a regular state school that didn't even have a radio program. In fact, radio is a good example of why college isn't even needed. Look at the main stars in the field. Howard and Opie are the only ones I can think of with broadcasting degrees. Rush? College dropout. Beck? College dropout. Levin? Lawyer. Savage? Doctorate in ethnic nutrition.

    College is expensive because of subsidized grants and loans. That's the bottom line. Take them away and people would value education more. In my case, everything I learned, I learned by doing. In the real world.
     
  15. VMS

    VMS Victim of high standards and low personal skills.

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    I stand corrected.

    Pretty much, yeah.
     
  16. Don the Radio Guy

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    Columbia School of Broadcasting is a scam, by the way. I did visit one before going to a real school. $15k for 12 weeks with an alumni base that does podcasts and buys time on the local brokered AM station.
     
  17. Lord Zero

    Lord Zero Viciously Silly

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    Just get rid of the Stafford loans all together. We need to stop using the federal government as a bank. All student loans should come from either an actual bank or credit union, the college itself, or maybe the state government.
     
  18. Norm Stansfield

    Norm Stansfield 私は亀が好きだ。

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    He's not smart, he's cynical. If he was smart, he would understand that that's wrong and act accordingly.
     
  19. Norm Stansfield

    Norm Stansfield 私は亀が好きだ。

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    Someone doesn't get the idea behind what a loan is: a voluntary agreement between two persons. Not an arrangement supported by forced taxation.

    Must be the fatty mcfatness.
     
  20. Don the Radio Guy

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    I guess this would be a good time to bring up the default rates on student loans? Or the growing movement from Barry's surrogates to forgive loans with tax money?
     
  21. CousinDave

    CousinDave Registered User

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    I think everyone should just default on these student loans, it the only way the system can be fixed
     
  22. Lord Zero

    Lord Zero Viciously Silly

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    He's not fat; he's festively plump.
     
  23. Lord Zero

    Lord Zero Viciously Silly

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    http://www.cato.org/publications/commentary/obamas-higher-education-reforms-doomed-fail

     
  24. TreeFortRichard

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    The Tuition is TOO DAMN HIGH!
    [​IMG]
     
  25. Don the Radio Guy

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    Nah, he's a fat fuck.
     

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