4 ms·

> What about loan companies, who definitely issued the loans, being on the hook? These days almost all student loans (90+% of the dollar amount) are being issu

> What about loan companies, who definitely issued the loans, being on the hook? These days almost all student loans (90+% of the dollar amount) are being issued by the feds.

lumost 5y ago
I'd be skeptical of that stat, almost all of my loans 10 years ago were private ( although I'm sure there is a federal backstop )
- mannerheim 5y ago
  This change occurred in 2010: > Prior to 2010, Federal loans included 1) direct loans originated and funded directly by the United States Department of Education and 2) loans originated and funded by private investors and guaranteed by the federal government. Guaranteed loans were eliminated in 2010 through the Student Aid and Fiscal Responsibility Act and replaced with direct loans because of a belief that guaranteed loans benefited private student loan companies at taxpayers expense, but did not reduce costs for students. https://en.wikipedia.org/wiki/Student_loans_in_the_United_States#Federal_loans https://en.wikipedia.org/wiki/Student_loans_in_the_United_St... > Most student loans — about 92%, according to a June 2020 report by MeasureOne, an academic data firm — are owned by the U.S. Department of Education. https://www.nerdwallet.com/article/loans/student-loans/student-loan-debt https://www.nerdwallet.com/article/loans/student-loans/stude... The MeasureOne link: https://www.measureone.com/resources https://www.measureone.com/resources
joe_the_user 5y ago
>> What about loan companies, who definitely issued the loans, being on the hook? > These days almost all student loans (90+% of the dollar amount) are being issued by the feds. Well that makes it easy. Forgive those loans and then stop issuing them. Force the universities to come up with reasonable programs with reasonable tuition. Universities have gone from institutions of learning to scams exploiting students and low-paid lecturers alike.
- mannerheim 5y ago
  Assuming the political impetus is there to stop issuing them. I'm sure there's the will to forgive those loans, though, which will probably just end up being a blank check from the feds to universities.
  - dragonwriter 5y ago
    > I'm sure there's the will to forgive those loans, though There's pretty clearly not, not even in the dominant wing of the Democratic Party, despite people—mostly in the progressive wing of the Democratic Party—expending a lot of effort to try to build it. It's possible there might be in the future, even perhaps the near future, though having a plan to prevent the problem from recurring and tying it in with the forgiveness makes that a lot more likely.
    - mannerheim 5y ago
      Student loan forgiveness is a mainstream topic. Biden is supporting cancelling $10,000 of federal student loan debt per person. On the other hand eliminating student loans, or even a segment of student loans (as GGP suggested) is not something you will see proposed outside of Reason Magazine or a Ron Paul newsletter. Any possible reform you could make will inevitably reduce the amount of income taken in by academia, a notoriously politically active bunch. So I foresee only indefinite band-aid solutions going forward.
- fortran77 5y ago
  > Forgive those loans and then stop issuing them Yes! I would not want to see these loans forgiven if they didn't also stop them at the same time.
- deleted 5y ago
  [deleted]
- gwright 5y ago
  > forgive those loans And what about the people who have already paid off their federally backed loans via their own hard work? They seem to get the short end of the stick in this case.

> What about loan companies, who definitely issued the loans, being on the hook? These days almost all student loans (90+% of the dollar amount) are being issued by the feds.

lumost 5y ago

I'd be skeptical of that stat, almost all of my loans 10 years ago were private ( although I'm sure there is a federal backstop )

mannerheim 5y ago
This change occurred in 2010: > Prior to 2010, Federal loans included 1) direct loans originated and funded directly by the United States Department of Education and 2) loans originated and funded by private investors and guaranteed by the federal government. Guaranteed loans were eliminated in 2010 through the Student Aid and Fiscal Responsibility Act and replaced with direct loans because of a belief that guaranteed loans benefited private student loan companies at taxpayers expense, but did not reduce costs for students. https://en.wikipedia.org/wiki/Student_loans_in_the_United_States#Federal_loans https://en.wikipedia.org/wiki/Student_loans_in_the_United_St... > Most student loans — about 92%, according to a June 2020 report by MeasureOne, an academic data firm — are owned by the U.S. Department of Education. https://www.nerdwallet.com/article/loans/student-loans/student-loan-debt https://www.nerdwallet.com/article/loans/student-loans/stude... The MeasureOne link: https://www.measureone.com/resources https://www.measureone.com/resources

joe_the_user 5y ago

>> What about loan companies, who definitely issued the loans, being on the hook? > These days almost all student loans (90+% of the dollar amount) are being issued by the feds. Well that makes it easy. Forgive those loans and then stop issuing them. Force the universities to come up with reasonable programs with reasonable tuition. Universities have gone from institutions of learning to scams exploiting students and low-paid lecturers alike.

mannerheim 5y ago
Assuming the political impetus is there to stop issuing them. I'm sure there's the will to forgive those loans, though, which will probably just end up being a blank check from the feds to universities.
- dragonwriter 5y ago
  > I'm sure there's the will to forgive those loans, though There's pretty clearly not, not even in the dominant wing of the Democratic Party, despite people—mostly in the progressive wing of the Democratic Party—expending a lot of effort to try to build it. It's possible there might be in the future, even perhaps the near future, though having a plan to prevent the problem from recurring and tying it in with the forgiveness makes that a lot more likely.
  - mannerheim 5y ago
    Student loan forgiveness is a mainstream topic. Biden is supporting cancelling $10,000 of federal student loan debt per person. On the other hand eliminating student loans, or even a segment of student loans (as GGP suggested) is not something you will see proposed outside of Reason Magazine or a Ron Paul newsletter. Any possible reform you could make will inevitably reduce the amount of income taken in by academia, a notoriously politically active bunch. So I foresee only indefinite band-aid solutions going forward.
fortran77 5y ago
> Forgive those loans and then stop issuing them Yes! I would not want to see these loans forgiven if they didn't also stop them at the same time.
deleted 5y ago
[deleted]
gwright 5y ago
> forgive those loans And what about the people who have already paid off their federally backed loans via their own hard work? They seem to get the short end of the stick in this case.