“Per qualche dollaro in più” or For A Few Dollars More . . .
Having helped quite a few younger people rearrange student loans from the private sector to Direct Loans or consolidate loans to achieve lower interest rates or payments; I just find this market-place-staging by some politicians offensive. July 1st the rates are expected to double (3+% to 6+%) for subsidized and unsubsidized Stafford loans and probably Perkins loans which all typically go to students who can least afford the “few extra dollars” as suggested by this newly minted Congressman from Indiana who appears to not be able to tie a decent knot in his tie. Student debt is on the upswing and appears to be the next bubble in which to contend. The rising deficit as suggested by Congressman Luke Messer is not increasing but is in a steady rate of decline and the economy is mediocre with slow job growth slow but is still far better than 1,2 or 3 years ago although it could use a shot of stimulus again. What is also insidious about this foray of increasing interest rates for those who can least afford it is there is “almost” no-way-out of it once students sign up for a loan. Those who have defaulted on ninja-style mortgages or did not pay hospital bills might understand the relentless pressure brought to bear; however, student loans have the official distinction of being cast in stone by Congress once a student signs his name. With only death, disability, or a lack of income over 20-or-so years being reasons for discharge can a person escape a student loan. We would not tolerate such for a mortgage or healthcare; but yet, we have locked our youth into such an arrangement.
Read or listen in to a few comments Indiana Congressman Luke Messer makes:
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The real threat to a college education today is not a few more dollars on their student loans today, it is the fact of the explosive growth of debt; the fact the jobs in this economy for young people entering this economy have been the people most hurt by Obama’s policies
“The bottom line is, what you’re saying is the president’s an effective politician. He does a good job of distracting people from things that they ought to be focused on, and sometimes focusing them on things that while important, listen, none of us want to see student-loan rates spike, are only part of the larger problem.”
“I think, as Republicans, we’ve got to do a better job of explaining how our ideas apply to young people. Sometimes it sounds like he’s selling ice cream and we’re selling spinach. But I think personal responsibility is pretty cool. There is nothing out of date about freedom, and we need to have the policies that get this budget back in line, stop the explosive growth of spending — spending that will be paid for by this generation. And we’ve got to do a better job of explaining that.”
Student debt as a result of high interest student loans is becoming more of a threat than the mortgage market ever did as there is no simple discharge. If one wanted to see the financial rats flee the commercial student loan business ship which this Congressman evidently supports, the president should propose simple interest for student loans.
http://maddowblog.msnbc.com/_news/2013/05/31/18660880-house-goper-sees-student-loans-as-trivial-distraction?lite “House GOPer sees student loans as trivial ‘distraction’
Personal responsibility and freedom. Don’t you just love it, chicka boom, chicka boom, don’t a just love it.
And the likes of Donald Trump has filed bankruptcy 3 times I believe?
Those stuck with these loans and no means to pay them are going to now have to purchase health insurance too. Just wait, I don’t believe the youth are going to have any issues with walking away. What are we going to do? Lock them all up? Make it so they can’t ever get a loan again? In an economy based on consumption?
No one has thought this through as it relates to the overall future of this economy. It won’t be the bubble bursting, It will be the lack of purchasing of stuff by at least 2 generations currently.
Hey Daniel:
I mostly agree with your words.
The youth may have no issue of walking away from these loans; but as I said, the consequences are far more extreme than walking away from a hospital bill or a mortgage. With these loans, the federal government or their assignees to service the loans (cornerstone, etc.) will hunt you down. The government will even go as far as to garnish your social security. It is pretty serious stuff.
I am hoping my one son’s loans will be forgiven as it has been 10 years with no income. This is the only way out . . . live a life as a pauper.
Ma come mai l’italiano ? Qui le rate universitarie sono base. E un riferamento al ovest selvaggia quindi filmata in Abruzzo. Ma dai non è vero che peggio anni da pecora che un giorno da Leone.
Roberto:
I stole a phrase from a spaghetti western . . . “For A Few Dollars More” with Clint Eastwood which parallels what Messer says in his dialogue.
Cardacino (little card) hails from Potenza. Always a lion in sheep skin. Better to seduce an enemy than to attack them openly. My Italian is based on having a grandmother from Italy on my mom’s side. I was first born and the apple of her eye. Pasquale (Patrick) was my grandfather’s name which she wished to name me. My understanding is weak and I have to listen carefully and think.
Run
modest suggestion:
everyone take a year off before going to college. that may give them something to think about.
college is a bit oversold anyway.
Coberly:
When the present view is needing a college education to gain the ticket into the middle class which was previously gained by a high school education and a sound work ethic (Dr. Elizabeth Warren “The Coming Collapse of the Middle Class”); what makes you believe there is still a large probability one can succeed without one now? The number of opportunities solely requiring a high school education has been on the decline for quite some time now.
If JP Morgan Chase, Citi Bank and the rest can go to the Fed and borrow at less than one percent how does it make any moral sense to raise student rates from 3% to 6% rather than lower those rates to 1%? it is no more complex than that? Equitable treatment is all that the working class has ever yearned to achieve. More is what the wealthiest are always looking for.