Remember how happy DU was when ObamaCoup was used to seize ALL student loans?

[SSG Snuggle Bunny]

Which is kind of interesting in and of itself.

ObamaCoup depends on forcing the young non-health care using portion of the populace to enter into the insurance marketplace and purchasing policies with upward spiraling prices to offset the costs for the aging population that does nothing but consume medical services.

When the law was passed the government assumed control of all student loans in a PR stunt that mostly got overlooked but those few on DU who did notice it saw it as the a gift from the heavens. Now is rearing its ugly rear:

xchrom (93,661 posts)

Taibbi: We're Saddling College Students with Crushing Debt and the Govt. Is Acting Like a Profiteer
 
 http://www.alternet.org/economy/matt-taibbi-were-saddling-college-students-crushing-debt-and-govt-acting-greedy-profiteer


***SNIP

Matt, welcome to Democracy Now!

MATT TAIBBI: Good morning.

AMY GOODMAN: So, lay it out for us. What is this scandal, as you describe it?

MATT TAIBBI: Well, there’s this overall connection between the sort of end—it’s very much like the housing crisis, where there was a limitless availability of credit that drove housing prices upward and upward until finally they collapsed. We have a similar dynamic going on here, where there’s sort of this bottomless well of government credit that keeps driving college costs up. And the difference here is not that it’s a market-based problem; it’s more that the government has limitless collection powers, so it has no fear of lending, and it continues to lend and lend and lend. And no matter how many defaults they get, they actually—some have argued that they actually make money on defaults, and they’re projecting a profit of $185 billion over the next 10 years.

AMY GOODMAN: How do they make money on the defaults?

MATT TAIBBI: Through fees and penalties. So, even when people default, even—and it’s not clear exactly how high the number is of defaults, but they’re able to farm those accounts out to collection services and the—for instance, a couple of years ago the government projected a recovery rate of 122 percent for all forms of Stafford loans that were in default. Now this year it’s a little bit lower; it’s somewhere between 103 and 109 percent. But it’s still above 100 percent, which gives you an indication of how easily they’re able to collect from people in default.

So what you're saying is as soon as government gets involved it creates a monopoly
that is no longer controlled by the democracy of the free market so competitive pricing
disappears leading to inflationary spirals...



Just like Freidman, Laffer, Hayek and every other conservative economist has always
ever predicted.

Civilization2 (551 posts)

2. the gov. and their owners, the banksters,. the 1% will happily "profit" from ANYTHING!
 
In some counties all higher education is payed for,. if you can make the grades, you can get a publicly funded education. Why is education in america a capitalist activity?

And yet your only solution is: one more try.


http://www.democraticunderground.com/10023503326

[JohnnyReb]

Well then, don't borrow gobs of money for DUmbass degrees.

BTW: Son just paid for his first semester.....after scholarships etc.....$389.

[Aristotelian]

Well then, don't borrow gobs of money for DUmbass degrees.

BTW: Son just paid for his first semester.....after scholarships etc.....$389.

I don't know your son, but something's telling me that he's approaching his education in a somewhat different manner to the DUmmies.

[diesel driver]

I don't know your son, but something's telling me that he's approaching his education in a somewhat different manner to the DUmmies.

I don't either, but it sounds like your son is getting an actual, useful EDUCATION, and not running up thousands in debts pursuing DUmbass degrees.

Kudos to you, Johnny, for raising a man instead of a boy, and kudos to your son for accepting the responsibility to be a productive member of society.  

[wasp69]

Civilization2 (551 posts)

2. the gov. and their owners, the banksters,. the 1% will happily "profit" from ANYTHING!
 
In some counties all higher education is payed for,. if you can make the grades, you can get a publicly funded education. Why is education in america a capitalist activity?

Actually, DUmbass, it doesn't have to be a "capitalist activity".  You have a professional college beggar who bums money for a living from her office at the University of Minnesota (Minneapolis) right there on DU.  You can hit her up under her DUmp name (Bainsbane), or you can hit her up at her office on The U of M campus.

Don't thank me, just pay it forward.

[JohnnyReb]

I don't either, but it sounds like your son is getting an actual, useful EDUCATION, and not running up thousands in debts pursuing DUmbass degrees.

Kudos to you, Johnny, for raising a man instead of a boy, and kudos to your son for accepting the responsibility to be a productive member of society.  

Thank you. He got his Eagle Scout award this past Sunday at church. Tomorrow is his first day of college. His major will be in Chemical Engineering.

[BlueStateSaint]

Thank you. He got his Eagle Scout award this past Sunday at church. Tomorrow is his first day of college. His major will be in Chemical Engineering.

Damn!  You get a H5 from me for him.

[diesel driver]

Thank you. He got his Eagle Scout award this past Sunday at church. Tomorrow is his first day of college. His major will be in Chemical Engineering.

H5 to you and your son!

He should have a great future in the energy sector, if we can get the stupid out of Washington (good luck with that, right)!

My sons (2 mine, 3 step) are doing good for themselves.
1 sells cars (works for Funny Car driver Matt Hagan's dad, for those that keep up with NHRA drag racing)
1 manages a NAPA auto parts store
1 does CAD work printing parts manuals for coal mining equipment
1 conducts paid online and telephone surveys for marketing companies
" Baby Boy" works at a truck assembly plant, making alternative fueled vechicles for the military.

Only 1 has a college degree, and he's the car salesman!    

[Karin]

JohnnyReb, that's wonderful news.  You're probably seeing your H5 count climb.  All my best to your son on this new chapter! 

As for the DUmmies, their DUmbass degrees are just one more mistake in a lifetime full of them.  You'd think eventually people would learn to think things all the way through, because the consequences are just so painful. 

[jukin]

Thank you. He got his Eagle Scout award this past Sunday at church. Tomorrow is his first day of college. His major will be in Chemical Engineering.

Nice work!

Still will a BSCE get him as far as a BA in Ancient Angry Asian Lesbians?

[GOBUCKS]

there’s sort of this bottomless well of government credit that keeps driving college costs up. And the difference here is not that it’s a market-based problem; it’s more that the government has limitless collection powers, so it has no fear of lending, and it continues to lend and lend and lend.

The DUmmy here is exactly right. And even if the kid is sensible, not fixated on a degree in fashion design or cinema or philosophy, the explosion in college prices will still hit.

Not too long ago, if you were white and not wealthy, going to an Ivy League school was a pipedream because of astronomical tuition rates. Now the only obstacle is admission, because you can borrow unlimited funds from the government.

In the meantime Big State U., which used to be a bargain for residents, has increased its prices into the stratosphere as well, because everyone has unlimited access to the government's stash.

[thundley4]

Civilization2 (551 posts)

2. the gov. and their owners, the banksters,. the 1% will happily "profit" from ANYTHING!
 
In some counties all higher education is payed for,. if you can make the grades, you can get a publicly funded education. Why is education in america a capitalist activity?

Unfortunately the left doesn't want merit based education, Affirmative Action would not exist if they did.

[Flufferlie]

I am 22, the age of the entitled generation of wimps, and unfortunately have student loans myself. However, this semester I received over 1700 dollars in a grant (not govt) based on my academic achievement for the last semester. In total I have received around 3000 dollars in grants /scholarships based on academic progress. My first two semesters I paid for myself, which was not easy by any means but I was proud of myself. When I got my student loan I did feel as if I was signing my life away, but I intend to pay every cent back when I graduate. I haven't even transferred to Appalachian state yet,  and of course I expect costs to rise, but I'm trying to build my future as best I can. I want to major in advertising because of the career opportunities it has at the moment, and I would pay more of it now out of pocket if I didn't already have a car payment. I try to buy my books out of pocket because I can find them cheaper on amazon sometimes, and I see no need into getting into more debt needlessly. College is not for the faint of heart for those who take it seriously and don't act as if they are entitled.