The Strib has a bright idea about dealing with the Student Loan Crisis.
Joe Doakes from Como Park has a brighter one:
Instead of subsidizing the interest rate on student loans, just give ‘em the money outright. Typical Star Tribune solution.
Left unspoken is the fact the federal government took over student loans as part of Obamacare. Yes, the interest on student loans that is killing our young people’s futures was intentionally factored in to help maintain the illusion that Obamacare wasn’t a budget-buster. That’s also why student loans remain non-dischargeable in bankruptcy . . . the government needs that money to pay for Obamacare.
Also left unspoken are the obvious free-market alternative – let interest rates float to the market level and thereby help students decide on the real cost of college – along with the pernicious effect of “free money” causing skyrocketing education costs.
This is Liberal thinking at its worst – a bad idea supposed to be fixed by another bad idea. Positive feedback loop, anyone?
Joe Doakes
Como Park
Now, I can see the Strib taking two approaches here:
- Taking a step back and realizing the wisdom of the market’s – and Joe’s – idea, and…
- Doubling down on socialism – accompanied by a smarmy Steve Sack cartoon ridiculing the notion of the market in education.
Any bets?
Look at this chart. The simple undeniable fact is the Big Education Parasites use K Street to comprehensively hose the poor and the middle class. http://www.declineoftheempire.com/2012/03/the-screwing-of-the-american-people-continues.html
It’s a government induced transfer of wealth and risk via rent seeking.
Democrats and Big Education increase inequality and decrease opportunity via bad education policy which induces more and more people to vote democrat. What a country!
I’m not sure starving the students so there are fewer customers is the way to control what colleges can charge. The Bush Tax cuts are considered an investment and a way to generate growth. An educated work force is the same thing.
The problem is you OVERPAY and have TOO MUCH DEBT to service. Very poor risk and return on investment profile.
Corporations should collectively offer certifications in what they need and that would put the fear of god into these overpaid parasites. I think I read that in the WSJ.
There are FEW corporations willing to state what they really need. I can’t say what the temporary Bush tax cuts have done to create jobs and create government revenue; but I can tell you that students are paying back their loans and the system generates a profit and bankruptcy does not forgive student loans. Just because the banks don’t get to be the intemediary doesn’t make the plan bad.
“I’m not sure starving the students…”
Sure, oldjohnnie, just as if they are a caged animal waiting for someone to feed them. If they depend on Democrats’ handouts they will vote Democrat…
check and mate
Paying back debt from overpriced education is killing this country. It’s a yoke around the middle class and poor.
Terrible public policy.
There are FEW corporations willing to state what they really need.
Well, yeah, because business needs change over time. A computer science major from the 1980s would have a pretty steep learning curve. What they need are people who can learn and synthesize new information. Too many colleges aren’t providing graduates who can do that.
Higher education knows that due to student loans and, often in grad school, tuition reimbursement by employers, they can raise tuition to ridiculous levels.
The UofM’s Carlson School takes in about $19,000 in tuition for each 3 hour and 20 minute class in its evening MBA program.
Everyone under 30 is getting completely screwed. http://www.zerohedge.com/news/santelli-encumbered-youth-us
There is a program that will reduce student loan payments to 15% of disposable income for 25 years: http://www.nytimes.com/2011/09/13/education/13loans.html?_r=1
By definition this is repayable by virtually everyone.