Student loans
Post Reply
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
26-11-2012, 03:04 PM (This post was last modified: 26-11-2012 03:09 PM by kingschosen.)
Student loans
I posted in this thread, but I think this deserves a new topic.

What are y'all's opinions on student loans? Also, what do you think about the mandates?

What I posted:

As a person who works with student loans 5 days a week, I can say that the government is at fault for the enormous student debt and college tuition prices.

Don't believe me?

The government mandates EVERY college that can receive Title IV funding into a clause called 90/10. This means that the student has to be responsible for at least 10% of their tuition. Keep in mind this is MANDATED. We HAVE to follow this. If we don't meet our 90/10, all federal funding that we received in the award year has to be refunded... which pretty much means that the school goes bye bye.

Here's the fun part, though. The feds also make an UNDENIABLE allowance on loans to ALL students. Your qualifications can changes whether the loans are subsidized or unsubsidized; however, we are OBLIGATED to give ALL students the MAXIMUM about of loans that they can receive ($9.5k-$10.5K per award year).

So, what does this mean?

Well, let's say that a Medical Assistant program (about 12 months) costs $10K. This is the cost of the program. Bare. This is just the plain, stripped down cost of it. Nothing more. And this is a very cheap estimate.

So, a new student coming in can receive $9.5K in loans, and depending on their eligibility, up to $5550 in Pell. So, basically, the student turns a $5050 PROFIT from going to school. Enter 90/10.

In order to stay legal, the school HAS to make the student pay at least 10%. Right now, the student is making a 50% profit. So, at minimum, we have to increase tuition by 60%.

When you factor in drops, student turn over, and student success rates, you see around a 100% increase in tuition just to keep costs at an even keel.

So, in regards to that MA program I was talking about, instead of tuition being $10K it is now $20K. The student can receive $15050 in federal aid, but now owes $4950 in tuition. This is where it gets fun. That money is seen as cash to the federal government, so this is how schools survive 90/10.

The school usually has a private lender set up to provide yet another UNSUBSIDIZED loan to the student to front the rest of the tuition. Now, the student doesn't have to pay a dime while they are in school, but when they graduate they have to start paying off the private lender at an accrued interest rate and then state paying off the government.

So, the student has $15K in unnecessary loans - which usually results in default - which leads to the astronomically high student debt.

The point is: schools CANNOT deny these loans... likewise, if they want to stay competitive, they have to find a private lender to agree to the other loans... which usually don't get paid... which drives down the economy...

This is why there is an ever increasing tuition costs.

It's not the schools. It's the federal government.

[Image: vjp09.gif]
Find all posts by this user
Like Post Quote this message in a reply
26-11-2012, 05:17 PM
RE: Student loans
Yeah that's very similar to how it works here. The 90|10 thing.
The financial aid however is determined by parental income (which is fucking retarded) and we don't have interest on our student loans.

No matter the problem with student loans I don't see that as being the problem. I think the availability of how easy it is to get a degree these days, toppled with alllll the useless degrees (example; the American and Pom I live with both have majors in History. Both can't find work.).
Like to be fair those degrees aren't useless, it's just that you have sooo soooo many people doing them flooding the market which usually only has a few positions, because people feel the need to go to university these days.

It's actually at the point where if you have a degree it's just "cool story bro".
Some degrees are still like how they should be; law, medicine, nursing etc...
That is how all degrees should be. They shouldn't be easily attained by anybody.

Also, Masters and PHD's.
Like the whole concept is that you finish high school. If you're smart enough you then went on to university and got your degree. Then you worked for like 20years. Then when you had advanced pretty much as high as you could, you went back to university and got your masters degree which having that work experience helped.
Then you worked again and then when you were like 102 years old you went back and using that extensive work experience you did your thesis and were able to contribute something to your chosen field.

How can a 24year old complete a thesis designed to contribute to that field when that person hasn't worked a day in their lives let alone a day as whatever they want to be?? It's fucking ridiculous.

[Image: 3cdac7eec8f6b059070d9df56f50a7ae.jpg]
Find all posts by this user
Like Post Quote this message in a reply
26-11-2012, 05:24 PM
RE: Student loans
Muffybutton, we have the dependency thing too. You go off your parent's income if you're under 24, not married, and don't have children that you support.

[Image: vjp09.gif]
Find all posts by this user
Like Post Quote this message in a reply
26-11-2012, 05:29 PM
RE: Student loans
It's fucking retarded right?

I know kids with rich parents who wont give them a dime (know plenty more who's parents pay for everything too).

It shouldn't be determined off parental income. Especially considering we're like 18+ and often live away from home. We're literally adults living away from home.

[Image: 3cdac7eec8f6b059070d9df56f50a7ae.jpg]
Find all posts by this user
Like Post Quote this message in a reply
26-11-2012, 05:38 PM
RE: Student loans
(26-11-2012 05:29 PM)earmuffs Wrote:  It's fucking retarded right?

I know kids with rich parents who wont give them a dime (know plenty more who's parents pay for everything too).

It shouldn't be determined off parental income. Especially considering we're like 18+ and often live away from home. We're literally adults living away from home.
Took the words right out of my mouth. It's ridiculous.

[Image: vjp09.gif]
Find all posts by this user
Like Post Quote this message in a reply
26-11-2012, 05:49 PM
RE: Student loans
So... what you are saying is... we should go back to the gold standard? Awesome.

[Image: 8947_2025.gif]

[Image: 4833fa13.jpg]
Poonjab
Find all posts by this user
Like Post Quote this message in a reply
26-11-2012, 06:33 PM (This post was last modified: 26-11-2012 06:48 PM by GirlyMan.)
RE: Student loans
(26-11-2012 03:04 PM)kingschosen Wrote:  The government mandates EVERY college that can receive Title IV funding into a clause called 90/10. This means that the student has to be responsible for at least 10% of their tuition.

Is this true even for students who get what we called "full ride" scholarships back in the day, whether athletic or academic. I think I recall going to Uni with a few people who had these "full ride" scholarships who not only had their tuition completely covered, but also books, and room and board in a dorm. Maybe times have changed.

I am us and we is me. ... bitches.
Find all posts by this user
Like Post Quote this message in a reply
26-11-2012, 06:59 PM
RE: Student loans
Yah the corporate universities are just victims...
Find all posts by this user
Like Post Quote this message in a reply
[+] 1 user Likes Diablo666's post
26-11-2012, 07:48 PM
RE: Student loans
(26-11-2012 06:59 PM)Diablo666 Wrote:  Yah the corporate universities are just victims...
And here it comes...

[Image: 3cdac7eec8f6b059070d9df56f50a7ae.jpg]
Find all posts by this user
Like Post Quote this message in a reply
27-11-2012, 08:36 AM
RE: Student loans
(26-11-2012 06:33 PM)GirlyMan Wrote:  
(26-11-2012 03:04 PM)kingschosen Wrote:  The government mandates EVERY college that can receive Title IV funding into a clause called 90/10. This means that the student has to be responsible for at least 10% of their tuition.

Is this true even for students who get what we called "full ride" scholarships back in the day, whether athletic or academic. I think I recall going to Uni with a few people who had these "full ride" scholarships who not only had their tuition completely covered, but also books, and room and board in a dorm. Maybe times have changed.
"Full Rides" are a very real thing. Schools have benefactors that pour money into colleges. It's not that these students don't have to pay for school, it's just that someone else pays for them.

I'm pretty sure, though, that even these students apply and receive Pell Grants if they're eligible.

[Image: vjp09.gif]
Find all posts by this user
Like Post Quote this message in a reply
Post Reply
Forum Jump: