What do you think of Obama’s stand against the student loan free lunch given to banks?
Friday, November 20th, 2009 at
3:29 pm
Mr Steele asked:
Federal student loans are either directly financed by the government or financed by private banks. Those private banks, however, get paid by the government if the student defaults on the loan.
Federal student loans are either directly financed by the government or financed by private banks. Those private banks, however, get paid by the government if the student defaults on the loan.
So banks are basically making profits with very little risk.
Obama has said he wants to cut the middle man out and save the government/tax payer millions in dollars in the process. He also said the banking lobbyiest are preparing for war but that he is not going to back down.
Whose side are you on?
Tagged with: Federal Loans • Private Banks • Tax Payer
Filed under: Student Loans
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His. This issue has become seriously problematic, and even Republicans have been promising to do something about this for a while.
If right-wingers want to promote individual responsibility, they can’t let banks throw college students into debt that they’ll never be able to pay off. That punishes hard work, which they claim to vehemently oppose.
I can see both the benefit of the way it is done now, and the fact that it costs the government more than it needs to.
On the border about this one.
I could care less how it is done, as long as it works efficiently.
If the government is already carrying the risk…then why not let them administer the loans directly ? Make the interest payments on those loans generate capital to pay for the administration and loan funding.
Oh, I’m always on 0′s side. he is absolutely the best.
I am on the side of student applicants.
I want the students to be able to get loans for less, if a banker thinks that this particular student presents lower risk of default.
When the privates banks weren’t involved, interest rates were much lower and there were more protections in place for the student. I would like to see it go back in that direction again.
Hmmm. I never thought about the student loan programs. It is a sweet deal for the banks. I wonder what the default rate is?
for Good Guys, of course, Obama……
sounds like a very good cause to me….!
Student Loans are set up so they will not be forgiven in Total Bankruptcy or Statute of Limitations, nothing will stop the Dreaded Student Loan Burden if your Life gets Overwhelmed by unforeseen circumstances~!
bunch of crap, i say.
you know what rich boys and girls do with the Grants and Student Loans they get….?
they put them in the Stock Market, when they Graduate they pay off the loan at low interest and collect the ka-ching that was drawing high interest for them at the bank during their Schoolin Days~!
so they are building themselves a nice little graduation present at our xpense~!
yeah… I have a friend who has student loans from a private bank at 9 PERCENT… on a basically risk free loan…
if private banks wanted to be reasonable… that’s one thing…
but clearly, they don’t care and are just trying to cash out at the costs of students…
I am absolutely with him on this one. I had student loans prior to them being privatized and the interest was so much lower and more people qualified. Plus, parents didn’t have to put up their houses and/or property as collateral. I know college costs a lot more but it was definitely easier to pay off loans at 3 or 4% vs. 7-10% like they are now.
Get the banks out of it. Of course they’re going to fight it because they don’t want anyone taking away their golden goose.
Obama has said and promised a lot of things. So far he’s given billion dollar loans to the banks and the car companies. When he starts actually giving to the American people and not the corporations he is now becoming the “boss” of in which our government has no place being a part of…so if Barry starts putting his mouth where his running campaign was..maybe the government will actually start giving government loans to permit education in this country instead and his “We the people” can actually become a motto instead of a “memory” as he is shooting for.
Obama needs to stop selling out our country to the enemy by giving them our “playbook”. He needs to step up to leadership. Next he’ll be vetoing “God” Bless America.
Why is it the left side confuses logic and fact with hate and racism therefore screams insults for lack of point unlike the rights who know what is really going on and has the backbone to say it out loud? lol