Student Loan News

I long for the day when I can lead with some good

Student Loan News
Student Loan News

Student Loan News.  Today is not that day.

The Seattle Times editorialized on a couple of my recurrent themes.

Students from middle-class families are forced to depend too heavily on student loans to pay for college. In Washington, about six out 10 students graduate with student debt, with an average of $24,600 per borrower, according to the Institute for College Access and Success. Nationally, the numbers are worse.

True so far, but the previous paragraph, not so much:

Considering how important it is to the nation’s economy that more young people go to college and get trained for the jobs of the future, lawmakers in Olympia and Washington, D.C., need to find more ways to make college more affordable and lower student debt.

Why Is College So Expensive?

Washington D.C. created the tuition bubble with its student loan policies.  The article talks about the parents of today’s students being able to work their way through college, like I did.

The cost went way up, as did the cost of administration, not professor salaries. Why not?

The college has no skin in the game; they get paid whether the student re-pays the student loans or defaults.

Why do we need “more young people to go to college” when we have 5,000 janitors with master’s degrees?

Where in the Constitution does the federal government have a duty, or even authority, over the cost of college?

There are plenty of good, even high, paying jobs that do not require a college degree.

Government policies have steered people and institutions away from programs that train for trades like plumbing.

We pushed a generation, or three, into going to college regardless of the cost of repaying student loans, and the colleges capitalized by lowering standards and creating more majors and degree programs so that they could make more money, regardless of where that left their graduates.

Worse For Farmers?

According to U. S. News:

According to a survey conducted by the National Young Farmers Coalition, young farmers owe an average of $35,000 in student loans. So while many farmers go to college to keep up with the latest scientific trends, the debt they accrue makes it harder for them to put that knowledge to use after graduating.

And, of course, farmers make less money, so it is even more difficult for them to repay student loans.

The farmers’ solution:

Originally introduced in 2015, the Young Farmers Success Act is a bipartisan bill that would classify full-time positions on farms and ranches as public service jobs. As a result, these workers’ federal student loans would become eligible for public service loan forgiveness. To qualify, a worker’s farm or ranch would also have to earn a certain amount of gross revenue from the sale of agricultural products each year. For 2017, that amount would be $35,000.

My problem?

This is another piecemeal proposal to a gigantic problem.

Better to address the whole picture, change the bankruptcy code, get the government out of the student loan business, and watch college costs collapse.

Student Loan Seminar

I was privileged to be part of a panel on student loan issues at the American Bankruptcy Institute seminar last weekend. Student Loan Bankruptcy Law Even though bankruptcy law is federal law, it is not the same everywhere. Federal courts are divided into Circuits.  I am in the 6th, Michigan, which also includes Ohio, Kentucky… Continue Reading

Student Loan Borrowers

Most of the time I rant on this blog about student loan servicers, or lenders, including the government. So today, let’s look at student loan borrowers. America’s college grads have earned an “F” in understanding their student loans. What Do Student Loan Borrowers Think? Paul Bedard of the Washington Examiner reports the findings of a… Continue Reading

Student Loan Collections

Well, Student Loan Collections are worse – than even I thought! And my opinion of student loan collectors was, is, they are abysmal. Shahien Nasiripour has a great story at the Bloomberg site. The Department of Education has even more ways to screw up. The Education Department, which rewards its (student) loan servicers with more… Continue Reading

What If I Do Not Pay My Student Loans?

One of the strongest indictments against the value of college is the astonishing number of folks who think they will not have to pay their student loans. According to a new survey, almost half of all college students believe they won’t be burdened with repaying student loans after they graduate. Spoiler alert: They will, unless… Continue Reading

Student Loan Changes?

New Presidents, new student loan policies. Part of Trump’s tax plan eliminates the student loan interest tax deduction. Under current law, taxpayers with income of less than $80,000 ($160,000 if filing a joint return) can deduct from their taxes the amount paid for interest on qualified student loans. $2,500 is the most anyone can deduct under… Continue Reading

Student Loan Crisis Continues

Hey, I would like a new topic, too! Email me if you have something other than student loan crisis that you want me to discuss. How Bad Is The Student Loan Crisis? Catherine Curan at the New York Post writes, it is getting worse at the hands of servicers. Old news, yes, but, it is… Continue Reading

Student Loan Crisis – How Does It Stand?

New presidents mean new policy, for the student loan crisis, that meant re-instating the 16 per cent collection fee on delinquent student loan debt. Although the fee was only stopped by the Obama administration last year, the New York Times bemoans its resurrection. The Education Department’s decision to let guaranty agencies gouge struggling people is… Continue Reading

Student Loan Bubble Update

I long for the day when the Student Loan Bubble Update is good news. Let’s lead with the surprise: According to the survey of 500 college students by LendEDU, a private firm that connects students and their families with student loans and loan refinancing, almost half of those responded that they believe they would be… Continue Reading