It's no secret that college is more expensive than ever. As graduating seniors, many of you know what schools you are going to and how much tuition you have to pay. Most of you will have to take out student loans, most of which are backed by Fannie Mae (The government agency that guarantees and funds most student loans).
Since you cannot get rid of student loan debt by declaring bankruptcy, the banks are more than willing to loan kids the money for college. And since colleges know that students are guaranteed to get loans, they continue to raise tuition because they get paid no matter what (even if you drop out of college, you are still responsible for your loan). Click on the links below
http://www.cbsnews.com/8301-505145_162-57517032/why-college-tuition-keeps-rising/
http://www.washingtonpost.com/blogs/wonkblog/post/chart-of-the-day-college-tuition-is-out-of-control/2011/10/27/gIQABi4sMM_blog.html
Bill Bennet was saying that colleges were raising tuition too much in 1987! Read the article below:
http://www.nytimes.com/1987/02/18/opinion/our-greedy-colleges.html
To sum up, I think the government should no longer back student loans, and if you manage to get a private loan, students should be able to discharge this debt via bankruptcy. What would be the result? Tuition would fall sharply because most people don't have 30 to 50 thousand dollars in their bank accounts to pay this ludicrously high tuition. If a college charged too much and people couldn't afford it, they would go out of business.
What do you think? Should the government stop funding Fannie Mae and NOT guarantee student loans? Post a response.
I completely agree with this statement. Student loans is the #1 debt in America! Because of student loans, everyone who's employed gets money deducted off their paychecks. For what? For students to be in debt and take more money out of banks? It makes no sense. People work hard for their money. Money coming from student loans is needed more for the economy because the economy is going down. There's people who have backgrounds in federal government looking for a job as a FBI Agent. But the economy cant afford to pay or hire any FBI agents because there's no money to pay for those FBI agents to work. This is why student loans shouldn't exist and that money should be used for more important things like the wellness of the US economy.
ReplyDeleteIn other nations (like France and Germany) the state pays the tuition of many students, so they don't graduate with so much debt. If we really need teachers and FBI agents, we should invest in paying the tuition of these kids.
DeleteI disagree because if you still getting paid and no and no ones taking out loans why you making it harder on students who have just left high school and really not knowing what's really going on yet.Sometimes I feel that the government just want to put people in debt and he just don't care for others.
ReplyDeleteI think that if collages wasnt so expensive a lot more people would want to go and a lot more people would be able to get better jobs
ReplyDeleteI think that Obama has the better plan because interest rates are lower and it seems like a more permanent solution.
ReplyDelete