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Elizabeth Warren: Student Loans Should Have Same Rate Big Banks Get

Discussion in 'Political Discussion' started by Patters, May 8, 2013.

  1. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    I think it's for legislation like this that the big banks and their conservative allies hate Elizabeth Warren.

    Elizabeth Warren: Student Loans Should Have Same Rate Big Banks Get

    WASHINGTON -- Sen. Elizabeth Warren (D-Mass.) unveiled her first bill Wednesday, designed to set student loan interest rates at the same level the Federal Reserve offers to big banks.

    With some student loan rates set to double on July 1 -- from 3.4 percent to 6.8 percent -- Warren's bill would reduce student loan interest rates to 0.75 percent, opening the Fed's discount window to students.

    "Every single day, this country invests in big banks by lending them money at near-zero rates," Warren told The Huffington Post. "We should make the same kind of investment lending money to students, who are trying to get an education."
    Last edited: May 9, 2013
  2. IcyPatriot

    IcyPatriot ~~~Out of Order~~~ PatsFans.com Supporter

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    Re: Student loan rates


    Huge .... very ... very HUGE. :yo:
  3. PatriotsReign

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    It's not a bad idea, but it doesn't address THE problem which is sky-rocketing college tuitions which are the result of "anyone who wants a college loan, get's one"

    So how do we control out of control education costs?
  4. wistahpatsfan

    wistahpatsfan Rookie

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    Re: Student loan rates

    Boy. Liz knows where to hit the spots that no one can argue against...except that this will now be labeled "communist" somehow.
  5. PatriotsReign

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    Re: Student loan rates

    nah....only if an idiot proposed FREE college education funded by taxpayers would they be labeled communist....and that would be communist!:D
  6. Nunchucks

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    Re: Student loan rates

    No, it actually would not be communist, but why let actual definitions of words get in the way.
  7. Real World

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    Re: Student loan rates

    What was the interest rate on the loan she got? I forget. Someone refresh me memory.

    One of the major reasons why student tuitions have exploded, is because of the cheap borrowed money via loans. Of course know nothing professors like Chief Talking Bull who have benefited from the tuition explosion, would love nothing more than to see even lower rates. Lower rates means more principle can be borrowed, which means highers tuitions and higher pay. Oh amd better bennies like no interest loans. Cheap money only leads to inflated prices and further hardship for those who matter most. But hey, it all sounds good so....
  8. JackBauer

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    Re: Student loan rates

    Sounds to me your intense dislike for Warren will color your judgment on any issue she'd champion, but you have a link to support your assertion there, bud?
  9. wistahpatsfan

    wistahpatsfan Rookie

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    Re: Student loan rates

    Yes. That's right. Let's make policy for the future based on what has happened in the past. That's kinda regressive, isn't it?

    The the reason tuition is too high is because the interest paid back by students who get loans is too low? How does that work? I don't know much about financing, so I'm sure you can edumicate me.
  10. JackBauer

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    Re: Student loan rates

    I had to go look that up because it didn't pass the smell test...needless to say I haven't found much describing student loans as a primary or even secondary driver of higher-ed costs.

    Maybe he's got a link I didn't find, though.
  11. patsfan13

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    Re: Student loan rates

    The whole College model is pretty outdated, it started in the middle ages when the prof read a book to the students and they copied the book this was pre printing press. Later the University was valued for it's Library as centralized source of information, not that too is obsolete, With the internet most of what is taught in college can be done on line without the edifices of the typical campus and the attendant expenses.
  12. Nunchucks

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    Re: Student loan rates

    There is so much that goes into a residence based college education, to think it can be replicated with an online curriculum is naive at best and willfully ignorant at worst.
  13. Charlotte Pats Fan

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    Re: Student loan rates

    You forgot to include " In my Opinion"
  14. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    Re: Student loan rates



    Note the use of the word most, btw what in the typical college education is worth 30k+ per year?
  15. BSR

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    Re: Student loan rates

    Its basic economics. The only reason the majority of students can go to any college is because of through a combination of public and private loans. That includes Public, not for profit and for profit schools. The Feds and private corporations are subsidizing the majority of public education at little cost to the schools. The schools can literally charge whatever they want because a) children need an degree if they are going to get any sort of well paying white collar job b) The funding of those payments can be done by someone else. Without any downward pressure from the revenue side there is no incentive to maintain or reduce costs. In turn, those that provide goods and services to schools can also continue to maintain or increase prices since there is no downward pressure from the schools. With demand for higher education nearly inelastic to price increases, increased costs by the schools can just be passed on to students.

    The reality is that it can't go on forever. Eventually the rising costs reaches a point where the credit markets start to dry up and there are signs that the time is now. Private lenders are raising the borrowing rates or even getting out of the business all together. This is causing a little bit of a shake up and that isn't necessarily a bad thing as it might cause schools to actually rethink their pricing structure. With the majority of their students on some sort of loan they would almost have to do something about it without losing a large portion of their student body.

    While this bill certainly has great intentions, what it also does is prop up the student loan credit market once again by making more overall credit available and deferring the point when colleges realize that there is no more room to go up in fees.
  16. JackBauer

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    Re: Student loan rates

    Well, if it's basic economics, you'd expect it to be cited as a primary driver in education costs, no?

    The consensus seems to be that the primary reason education costs have gone up is cutbacks in support at the state level.
  17. DocHoliday

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    Silly. I hope undergrad rates skyrocket out of control.

    Maybe that way students will realize its not free money and stop willfully paying exorbitant tuition rates.

    Someone has to shake these kids and show them how awful it is to be paying student loans for 20+ years.

    Treat the problem not the symptom!!!

    Once big schools start losing kids to cheaper institutions for real they'll start having a reason to control costs. But if kids can keep getting cheap money they won't care.

    One thing I'd like to see is a removal of the deferment period. Once you borrow money you should be paying bills from the start. Maybe that way it'll become apparent what its costing you.
  18. BSR

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    Re: Student loan rates

    No, because it isn't the direct cause. When a school experiences increased costs (I haven't read about cutbacks in state support being the cause of increased school costs, but whatever.) they have two choices: cut costs elsewhere or raise prices. Schools can just raise prices because an elasticity to demand. In other words, the demand for your product won't drop despite the increased prices. The proof is the rise of college tuition rates juxtaposed with the rise in college enrollment rates.
  19. JackBauer

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    Re: Student loan rates

    Sounds totally reasonable in theory. Though I'd like to see a study/some evidence to show this is how it operates in practice. In other words, I'd like to see some evidence of causation, not simply correlation.
  20. Nunchucks

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    Re: Student loan rates

    No, I did not.
  21. Nunchucks

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  22. BSR

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    Re: Student loan rates

    I'm not trying to make the argument that I have all the answers either, but I think often times we focus too much on financing (i.e., student loans) and not enough on the costs the are driving up the tuition in the first place. I would really like to see schools, particularly private schools with their enormous endowments, make larger efforts to reduce operating costs. I have a really hard time understanding how their costs have outstripped everyone else's costs over the past 20 years.
  23. Ilikehappyppl

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    I love this woman!


    Don't tell my wife though lol, all joking aside I'm really proud of this lady and she makes me feel good about the direction some people want to take with our country.

    I would rather have her then Clinton, she's much more intelligent and articulate in her ideas and talking points. I hope she runs for Prez, I might vote for a woman! WOOOOHOO!
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  25. patsfan13

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  26. PatriotsReign

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    Re: Student loan rates


    Hey chuckie....get a sense of humor or don't bother posting here.

    First of all, taxpayers in America would never foot the bill for free college education. Secondly, compared to the current system, free college education would be a Radical change.

    Lastly, average Americans like myself can't afford to pay any more taxes.

    But my post was a just a wise guy reply to wistah...which is the purpose of the smiley face guy.

    Lighten up!
  27. PatriotsReign

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    Re: Student loan rates

    Basic ecnomics says an entity can charge whatver the market will bear....so in the case of the rising costs of college education, it's rising because students are willing to pay what the colleges are charging.

    Why are they willing to pay and how can they pay the costs? Because anyone can get a college loan for whatever they want without limits, that's why & how.

    Look up the requirements for college loans.....there pretty much aren't any as long as one gets accepted into a college.

    The good news is that no one can ever be forgiven for college debt. It will follow you around til the day you die.
  28. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    Re: Student loan rates

    Most college instructors are adjunct and earn around $2500 to $4500 per course, meaning that if they teach a full course load of 10 classes (which is a ridiculously large number), they'd be lucky to earn a middle class wage (with few benefits). Universities always try to hire a few big names because (1) it attracts students, (2) it generates alumni donations, (3) it helps secure research grants, and (4) sometimes the exceptional teachers are worth it. Very few people in universities and colleges make big bucks. It's so weird how much the right wing undervalues education. Perhaps that's why the right wing is filled with dopey ideas that almost invariably end up in the dust bin of history.
    Last edited: May 9, 2013
  29. wistahpatsfan

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    Re: Student loan rates

    I work for my money. I started a business out of high school after I learned a trade. Work is easy. Later, I went to college to learn new things, meet new people and how to think differently. Not everything is about money. Not everything needs to be thought of in a zero-sum context. Then I got married and had kids and really started to learn something. That's not a zero-sum thing either.
  30. IcyPatriot

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    Re: Student loan rates

    :yo::yo::yo::yo::yo:

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