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Elizabeth Warren Student Loans Bill Endorsed By Several Colleges, Organizations

Elizabeth Warren Student Loans Bill Endorsed By Several Colleges, Organizations

The Huffington Post  |  By Posted:   |  Updated: 05/24/2013 3:04 am EDT

A little more than two weeks after introducing her first bill, Sen. Elizabeth Warren (D-Mass.) is already seeing a wave of strong support.

Back on May 8, Warren announced her plans to set student loan interest rates at the same level big banks receive from the Federal Reserve. Come July 1, some student loan rates are set to double from 3.4 percent to 6.8 percent, prompting Warren to push for legislation that reduces the level to 0.75 percent.

By Thursday, Warren's website showcased that more than two dozen organizations have endorsed the measure. Among the notable supporters were major universities like the Massachusetts Institute of Technology and groups like American Federation of Teachers.

Coupled with the support from outside sources is a strong core of political colleagues behind the bill. Sens. Mark Begich (D-Alaska), Barbara Boxer (D-Calif.), Mary Landrieu (D-La.), Claire McCaskill (D-Mo.), Jeff Merkley (D-Ore.) and John Rockefeller (D-W.Va.) have joined on as co-sponsors, and Rep. John Tierney (D-Mass.) has introduced a corresponding House version of the bill.

In a Tuesday op-ed for the Boston Globe entitled "Banking on our students," Warren and Tierney stressed the other end of the student loan predicament: government profits. Back in mid-May, figures from the Congressional Budget Office showed that the Department Of Education is set to reap a record $51 billion profit from student loan borrowers. From the Globe:

This is not fair. And it’s not necessary, either. The federal government makes 36 cents on every dollar it lends to students. Just last week, the Congressional Budget Office announced that the government will make $51 billion on the student loans it issued this year — more than the annual profit of any Fortune 500 company, and about five times Google’s yearly earnings. We should not be profiting from students who are drowning in debt while we are giving great deals to big banks.

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If they enforced bank regulations like they do park rules, we wouldn't be in this mess

by on May. 24, 2013 at 9:51 AM
Replies (11-20):
brookiecookie87
by Platinum Member on May. 24, 2013 at 10:30 AM



Quoting MsDenuninani:

I have one reservation about this.

College tuition has skyrocketted over the past 10-odd years, and I worry that cheap borrowed money is just going to make it that much easier for colleges to let this skyrocketing continue.  Essentially, tuition increases are in a market where, because you have to get a degree to have a job these days (although it's not a guarantee, it's still your best bet), people are going to pay anything to go to college, which means they will borrow any sum of money, especially if they can do it cheaply.

I'm not against this - but I really think we need to consider how stuff like this is effecting that particular market.

I would agree with you IF it wasn't already the case where everyone feels they must go to college.

Nearly everyone I know who had the ability to go to college tried to go to college. The only people I know who didn't were people who got married and had kids, and people who didn't have the grades/didn't think they could do it.

Lowering the interest rates wouldn't encourage either group not to join. But it would go a long ways for the people who do attempt to go and end up with a mountain of student loans. Though I did live in a Upper middle class area. So perhaps it is much different for the people who struggled more through out their lives and just think they cannot afford it.

But for those people I can't see the interest rate being a defining issue for if they can afford it.


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If they enforced bank regulations like they do park rules, we wouldn't be in this mess

brookiecookie87
by Platinum Member on May. 24, 2013 at 10:32 AM
1 mom liked this



Quoting Donna6503:

Gee Brooke, we usually on agreement on most topic.

But, I'm totally against this bill.

It happens. I normally find it more amusing when I am agreement on topics with people who I am normally in disagreements with :P


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If they enforced bank regulations like they do park rules, we wouldn't be in this mess

talia-mom
by Gold Member on May. 24, 2013 at 10:35 AM
I was very clear.
They should not be giving loans nor setting interest rates.


They


Quoting brookiecookie87:



Quoting talia-mom:

The government should not be involved giving loans or setting interest rates. It is not their business.


Quote:

Department Of Education is set to reap a record $51 billion profit from student loan borrowers. From the Globe
Right now we make 51 billion dollars in profits off our college students. Are you saying we shouldn't give them loans at all anymore? Or just not at such low interest rates?




MsDenuninani
by Silver Member on May. 24, 2013 at 10:37 AM

 


Quoting brookiecookie87:

 

 

Quoting MsDenuninani:

I have one reservation about this.

College tuition has skyrocketted over the past 10-odd years, and I worry that cheap borrowed money is just going to make it that much easier for colleges to let this skyrocketing continue.  Essentially, tuition increases are in a market where, because you have to get a degree to have a job these days (although it's not a guarantee, it's still your best bet), people are going to pay anything to go to college, which means they will borrow any sum of money, especially if they can do it cheaply.

I'm not against this - but I really think we need to consider how stuff like this is effecting that particular market.

I would agree with you IF it wasn't already the case where everyone feels they must go to college.

Nearly everyone I know who had the ability to go to college tried to go to college. The only people I know who didn't were people who got married and had kids, and people who didn't have the grades/didn't think they could do it.

Lowering the interest rates wouldn't encourage either group not to join. But it would go a long ways for the people who do attempt to go and end up with a mountain of student loans. Though I did live in a Upper middle class area. So perhaps it is much different for the people who struggled more through out their lives and just think they cannot afford it.

But for those people I can't see the interest rate being a defining issue for if they can afford it.

 

The other consideration I didn't mention was community college and technical schools.  I don't think tuition rates there haven't been on the rise like they have other places, and those students also need loans.

 

brookiecookie87
by Platinum Member on May. 24, 2013 at 10:38 AM

I was just making sure. If I don't make sure you would be here saying I am assuming too much.

We will have to agree to disagree here. I believe the education of the people in our country is one of the greatest investments we can make. And we already give out loans. Doesn't make sense to charge people such high interest rates for an education, especially since the debt they get from it cannot be erased and will follow them for their entire lives.

Quoting talia-mom:

I was very clear.
They should not be giving loans nor setting interest rates.

They

Quoting brookiecookie87:

Quoting talia-mom:

The government should not be involved giving loans or setting interest rates. It is not their business.


Quote:

Department Of Education is set to reap a record $51 billion profit from student loan borrowers. From the Globe
Right now we make 51 billion dollars in profits off our college students. Are you saying we shouldn't give them loans at all anymore? Or just not at such low interest rates?




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The Ninety-Nine Percent Moms   

If they enforced bank regulations like they do park rules, we wouldn't be in this mess

Aslen
by Silver Member on May. 24, 2013 at 10:41 AM
1 mom liked this
That's total bullshit. You can't get a decent job without a degree. And please link us to your proof


Quoting gsprofval:

The student loan rates went up when obummer decided that only 5 banks in the U.S. can make student loans.  What a bunch of crap.


Since most student loans aren't paid any way, it probably won't matter. Because of obummer, there are very few jobs for college grads.


Tag3.0
by on May. 24, 2013 at 10:52 AM

Bahahahahahaha!!! Military enlistment numbers will skyrocket!!!!!! Yes!

brookiecookie87
by Platinum Member on May. 24, 2013 at 11:04 AM



Quoting Tag3.0:

Bahahahahahaha!!! Military enlistment numbers will skyrocket!!!!!! Yes!

How will this make Military enlistment numbers skyrocket?

This makes college loans more managable and will help people get to paying them off quicker. That's the opposite of what would make Military enlistment numbers go up.


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The Ninety-Nine Percent Moms   

If they enforced bank regulations like they do park rules, we wouldn't be in this mess

jhslove
by Bronze Member on May. 24, 2013 at 11:28 AM
1 mom liked this

 Let's also not forget that the unemployment rate is SIGNIFICANTLY lower (3.9%) for people with at least a bachelor's degree than it is for those without.

I think this is a great bill. We should be investing at least as much in college students, the future workforce, as we are in the big banks.

 

Quoting Lizardannie1966:

"Obummer," as you refer to him, helped to initiate a reasonable and low-cost pay off program for those who've seen their student loans go into default.

They work with the DOE, paying back a fee each month that they (a former student) can budget and within a matter of months, their student loan is no longer in default and they can then start on a new program that will be budget-assisted to fit their income needs to continue paying their loans off and help avoid future default.

The guy can't be that bad to have helped with this type of program.

Quoting gsprofval:

The student loan rates went up when obummer decided that only 5 banks in the U.S. can make student loans.  What a bunch of crap.

Since most student loans aren't paid any way, it probably won't matter. Because of obummer, there are very few jobs for college grads.


 

 

lga1965
by on May. 24, 2013 at 11:33 AM

 you rockglad to see you back here again. ;-)

Quoting brookiecookie87:

 

Quoting gsprofval:

The student loan rates went up when obummer decided that only 5 banks in the U.S. can make student loans.  What a bunch of crap.

Since most student loans aren't paid any way, it probably won't matter. Because of obummer, there are very few jobs for college grads.

Let me get this straight. Elizabeth Warren is trying to pass a bill that will lower the rate on College Loans to that of what banks can get (A drastic change) and you are here complaining about Obama, why?

You do realize Student loan rates have gone up far before President Obama went into Office (This wasn't something that just sprouted up in the past few years).

And you do realize we were losing hundreds of thousands of jobs before President Obama went into office as well, right?

Or are you just one of those people that blame everything on Obama? Do you believe he had something to do with that tornado as well? It looks like it will rain today, should I blame Obama for that?

Let's take a minute and blame Obama for everything that has ever happened. Now can we get back on track?

This is a good bill. And I imagine anyone who gets behind her and supports the bill will look good for doing it. The people who don't, wont. So whether this bill gets through or not, I imagine it will be a success for her. But I hope it will make it through.

 

 

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