University of Minnesota Franken gives student aid bill a boost ...

Now Frankenstein communist statists will control who gets loans, and who gets student aid. Abomination.

Soon the Franken may hoist his stein to the victory of mongrel communism over the American republic.

Tobias wrote:

College is a privilege, not a right, as I don't see anything mentioned in the Constitution about it. If you deserve to go to college, you should plan to graduate and get into a job where you can pay back the money you borrowed as a good citizen of the United States of America. You should also have some money to start with and a job during college to help pay some of the costs. I dont believe in Pell Grants/Welfare. Frannie Franken and her sisters were on the Dole and Franken is trying to legitimize it by passing this law. Its somehow ok to live off of the backs of those who toil everyday at a real job.

So in your world any brilliant student who happened to be norn to poor parents should be denied their education? This is why you guys have lost the country.

Bike Bubba wrote:

Orrell, you do know the difference between "ethnic" and "ethic," right?
Oh, you don't. OK.
jcw, I'm not arguing that a university ought to be a trade school. I'm simply arguing that if someone borrows money to go to college, they ought to have prospects of paying it back, and most actual bankers are familiar with how to establish this.
In short, they'll look at the collateral for the loan--the student's grades, major, and habits. And yes, "ethnic and gender studies" would take a huge hit with sane lending for student loans.

Yes, ethnic is what I am, ethics is what I have. You seem to not have either.

IrishMN wrote:

Isn't it fun when the Republi-thugs have no issues they can argue and simply go for the name calling?
I love you guys.

Kind of like you using your Republi-thugs term. That is name calling but you are not even smart enough to realize it. You are so simple minded it is beyond belief.

It's unethical to point out that graduates in certain majors have little prospect of paying their college loans, and that maybe, just maybe, we ought to listen to the signals that the economy is sending us?

Really?

And it's unethical to suggest that bankers might do better at underwriting loans than people whose job description might as well read "throwing money down the toilet"?

Bike Bubba wrote:

It's unethical to point out that graduates in certain majors have little prospect of paying their college loans, and that maybe, just maybe, we ought to listen to the signals that the economy is sending us?
Really?
And it's unethical to suggest that bankers might do better at underwriting loans than people whose job description might as well read "throwing money down the toilet"?

In a word: yes. The left believes it is unethical to question their motives at any
time. They immediately paint you as a radical right winger who needs to be either
educated, or silenced. To the rest of us, it has nothing to do with "ethics", it is
simply logic; if things can be shown one way or the other, we accept it. If not, we
reject it and look for other solutions.

And to my friends on the left: the radical right uses the same tactics..........
I GET IT! To both extremes: don't try to justify bad behavior by pointing to other
bad behavior!

Logic tells me one thing: education is a right and also a responsibility. It is the
responsibility of each student to take this right seriously. "Higher" education is
a privilige; that's why they charge you for it. To the right: Do you really believe
we can do without higher education? REALLY? To the left: Do you really believe this
society can afford to send every person in the country to college? REALLY? Each
individual has to decide for themselves if borrowing money for school will pay off in
the end. When it doesn't get paid back, then it should be between them and the bank.

So, both sides, where am I going wrong?

I've been waiting for this to come back to the topic of the story, but it doesn't seem like it will. Let me try:

It doesn't matter who originates a federal student loan...the criteria are the same.

Federal student loans have more favorable terms than private loans. These loans are guaranteed by the government, and the government sets their low interest rate. Nearly all students are eligible to receive federal student loan money (regardless of credit score or other financial issues), and federal student loans feature a grace period after school when no payments are due.

This is the type of loan that Franken is talking about. Not 'private' student loans, which are a risk taken on by the issuing bank. The bank makes a fee for originating the federal loan, and processing the payments. If the loan defaults, the bank gets their money paid back, and the government comes after you for repayment.

But, student loans are all but guaranteed to be paid back, because they are nearly non-dischargable in a bankruptcy (Currently your loan may be discharged only if the first payment became due on the debt at least seven years before the bankruptcy was filed.). What salary a person makes is irrelevant to them being paid back...the government will get their money one way or another:

* credit bureaus may be notified [under 20 U.S.C.1080 or 20 U.S.C. 1087cc (c)] and your credit rating may suffer,
* the IRS (under 34 CFR 30.20-30.33) may withhold your tax returns,
* you may be subject to an Administrative Wage Garnishment where the Department of Education ( under 20 U.S.C. 1095a), will require your employer to forward 10-15% of your disposable pay for repayment , or
* the Department may take legal action to force you to repay.

ALL Franken is doing it making the government larger by eliminating the origination and processing of the loans through private banks. They will need more people, and they will make more money, if they are the only ones able to do it. Additionally, they will add a ton of red tape and delays.

Incredible70 wrote:

I've been waiting for this to come back to the topic of the story, but it doesn't seem like it will. Let me try:
It doesn't matter who originates a federal student loan...the criteria are the same.
Federal student loans have more favorable terms than private loans. These loans are guaranteed by the government, and the government sets their low interest rate. Nearly all students are eligible to receive federal student loan money (regardless of credit score or other financial issues), and federal student loans feature a grace period after school when no payments are due.
This is the type of loan that Franken is talking about. Not 'private' student loans, which are a risk taken on by the issuing bank. The bank makes a fee for originating the federal loan, and processing the payments. If the loan defaults, the bank gets their money paid back, and the government comes after you for repayment.
But, student loans are all but guaranteed to be paid back, because they are nearly non-dischargable in a bankruptcy (Currently your loan may be discharged only if the first payment became due on the debt at least seven years before the bankruptcy was filed.). What salary a person makes is irrelevant to them being paid back...the government will get their money one way or another:
* credit bureaus may be notified [under 20 U.S.C.1080 or 20 U.S.C. 1087cc (c)] and your credit rating may suffer,
* the IRS (under 34 CFR 30.20-30.33) may withhold your tax returns,
* you may be subject to an Administrative Wage Garnishment where the Department of Education ( under 20 U.S.C. 1095a), will require your employer to forward 10-15% of your disposable pay for repayment , or
* the Department may take legal action to force you to repay.
ALL Franken is doing it making the government larger by eliminating the origination and processing of the loans through private banks. They will need more people, and they will make more money, if they are the only ones able to do it. Additionally, they will add a ton of red tape and delays.

Thanks for the explanation. I would tend to agree with you on this one.

orreljw wrote:

<quoted text>
Thanks for the explanation. I would tend to agree with you on this one.

Man, I better print this out and keep it. I never thought I'd see that in print!

Incredible70 wrote:

<quoted text>
Man, I better print this out and keep it. I never thought I'd see that in print!

I Know! Right?