Friday, December 16, 2005

Keeping up the fight on student loans: Students across the country are making calls to their representatives to demand that this Congress stop raiding student aid to pay for other priorities. Word has it that Senator Gordon Smith's answering machine is full in Oregon...

The latest update is that the House and Senate members who will decide the final "compromise" package of cuts to student aid will meet on Monday or Tuesday---the compromise being between a very large set of cuts and a smaller set of cuts. But it is cuts either way, unless the whole thing is stopped.

Meanwhile, the Baltimore Sun editorializes against the cuts today:

Who isn't aware by now that the cost of attending American four-year colleges has been soaring far beyond the rate of growth in U.S. family incomes, and that more and more students are having to take out loans to get by?

About half of all student aid now comes as loans, and students are leaving college with an average of more than $17,000 in debt to repay. In addition, about three-quarters of college students report relying on credit cards to pay for food, books and other school expenses. As a result, 39 percent of all college graduates leave school saddled with a level of loans and other debts considered unmanageable.

And now Congress is poised to help make that average debt total leap higher. Among the House's proposed spending cuts is $14.3 billion from federal student loan programs over the next five years. These cuts won't decrease the number of loans but would raise student borrowing costs by almost $9 billion - or an estimated $5,000 per student, according to the U.S. Student Association. The best hope for college students offered by Congress is not that much better: the Senate's competing proposal of $8.5 billion in student loan cuts through 2010.


So keep up the good fight! We're stalling them, and that can only help.

10 Comments:

Anonymous Anonymous said...

College loans hurt the poor:

http://www.lewrockwell.com/orig6/nicholas2.html

"the relative ease of borrowing money to finance an education – and the low interest rates at which those funds are lent – may be contributing to a widening gap between affluent, middle class and poor students."

8:30 PM  
Anonymous Anonymous said...

Perhaps you'd prefer a massive tax hike?

12:39 PM  
Anonymous Anonymous said...

Part of my college thesis examined the relationship btwn. child care subsidies and poverty.

Without getting into too much detail, the current system of child care subsidies is a patchwork of overlapping federal and state programs. There are about 15 programs (as of 2003) at the federal level and countless state programs. Their net effect is to raise the cost of (outside the immeadiate family) child care without providing a similar increase in child care services.

Higher education subsidies are similar in that they are spread across a patchwork of federal and state programs. The previous poster is correct when he sez that consolidating said programs would achieve better results.

While you would still have to deal with the fact that subsidies increase the market power of institutions of higher education, the subsidies wouldn't screw up the market this badly.

This, unfortunately, ignores political realities. Specifically, each of these programs has a powerful defender somewhere in Washington who somehow benefits from said programs.

Thus, you're not going to get the consolidation you're talking about. It would require congressional action, and certain members of congress have a vested interest in the status quo.

Now, eventually we're going to have to pay for this crap. Since Chris' consolidation isn't going to happen anytime soon, does anyone see any alternative to a massive tax hike?

1:22 AM  
Anonymous Anonymous said...

Just a suggestion for people who are having problems wish students loans...I was checking out different blogs for suggestions from other students and came across www.youcandealwithit.com . It helps to explain everything that you guys have been discussing.

2:21 PM  
Anonymous Anonymous said...

Cost controls? I hope your not referring to the Govt placing a cap on the price of tuition. If you are, I suggest researching the effectiveness of Govt. price controls documented over the last 4,000 years. You might rethink your position.

3:37 PM  
Anonymous Anonymous said...

QUOTE:
okay, noid, time to stop misinterpreting the article you so happily keep trying to link us to. The article is saying that when it comes to paying for college, low income and middle income kids are STILL at a disadvantage despite what our loan policies are supposed to be doing to assist them and that even MORE attention must be paid how to ensure they can get on equal footing to their richer counterparts who can happily attend private college institutions with or without federal aid. What are the alternatives? Lower tuition. More grants. Cost controls and incentives for cost controls at the institutional level. These solutions are perhaps better than an over-reliance on loans for the lower and middle classes. So stop trying to make the article's conclusions about eliminating any solutionos that help the middle and lower class completely. I would bet BILLIONS that the author's intention was to look at solutions other than loan aid, rather than to say "screw the poor" completely, as you choose to interpret it.
/QUOTE

Wow are you retarded. I hardly know where to begin. First, I just posted a link and submitted that college loans hurt the poor. I didn't say anything about what I believe should be done instead. From what I posted on the issue, I could either be for cutting all federal education money or I could be in favor of changing all loans into full grants. Secondly your interpretation of the author's intentions are laughable since she doesn't give any suggestions for solutions either since her article is just about pointing out a problem. But given that her article is posted on a "anti-state" and "pro-market" site, if anything it would make more sense to assume that she would be making a point against state involvement than your BILLION dollar bet.

12:37 AM  
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2:14 PM  
Anonymous Anonymous said...

Wow. that's funny. this whole thing is crazy.

3:14 PM  
Anonymous Anonymous said...

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5:01 PM  
Anonymous Anonymous said...

I must say its a great post. Keep up the good work.

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7:04 AM  

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