Trump considers selling Student Loan Debt to private investors.

[JimmySpeaks]

Just now, braves121 said:

 

Farmers knew the risk they took financially it’s not the tax payers responsibility to pay for the loans that the farmers knowingly took out 

If only people didn’t need to eat to survive huh?

[JimmySpeaks]

1 minute ago, braves121 said:

 

Farmers knew the risk they took financially it’s not the tax payers responsibility to pay for the loans that the farmers knowingly took out 

Trump is paying off farmers loans ?????? 

[braves121]

1 minute ago, JimmySpeaks said:

If only people didn’t need to eat to survive huh?

These farmers are soy bean farmers, they are not feeding any American. 

[braves121]

Just now, JimmySpeaks said:

Trump is paying off farmers loans ?????? 

Are you really this dense? What else would the farmers use the bailout money for?

[JimmySpeaks]

8 minutes ago, braves121 said:

These farmers are soy bean farmers, they are not feeding any American. 

Again, look to the future. America can’t survive without them. 

Edited 13 hours ago by JimmySpeaks

[JimmySpeaks]

3 minutes ago, braves121 said:

Are you really this dense? What else would the farmers use the bailout money for?

 Please prove to me how dense I am. 

[JimmySpeaks]

10 minutes ago, braves121 said:

So Argentina would’ve became a communist country if we didn’t bail them out?

So they wouldn’t???

Edited 13 hours ago by JimmySpeaks

[JimmySpeaks]

8 minutes ago, braves121 said:

Are you really this dense? What else would the farmers use the bailout money for?

I thought you wokester liberals loved handouts???  

Edited 13 hours ago by JimmySpeaks

[Paul158]

36 minutes ago, braves121 said:

 

Farmers knew the risk they took financially it’s not the tax payers responsibility to pay for the loans that the farmers knowingly took out 

Couldn't you say the same thing about students who took out loans and got an education and a degree? Didn't they know the risk. They are responsible to select a degree that is marketable and then go out and get a job. Right. Agriculture is 6 percent of our GDP. Its about 2 trillion dollars. These are actually companies, manufactures and farms. Millions of jobs. Agriculture is a vital part of our economy. The government can and has caused farm crisis's before. Take a minute and read about the farm Crisis of the 1980's. When President Carter approved a grain embargo of gain to Russia. The effects of that left devasting results for 15 years. We don't need a repeat of that this time around. China buys about 60 percent of the soybeans we export. That's about 14 billion dollars' worth.  

Edited 13 hours ago by Paul158
missed a word

[Paul158]

37 minutes ago, braves121 said:

Are you really this dense? What else would the farmers use the bailout money for?

Maybe feed their family. Maybe use it to pay for next year purchase of seed and fertilizer.

[mspart]

3 hours ago, braves121 said:

Farmers knew the risk they took financially it’s not the tax payers responsibility to pay for the loans that the farmers knowingly took out 

Yet you are fighting for students to be able to get relief from the their debt.  Do you not see the logical fallacy there?

mspart

[braves121]

13 minutes ago, mspart said:

Yet you are fighting for students to be able to get relief from the their debt.  Do you not see the logical fallacy there?

mspart

The logical fallacy is the president picking winners and losers while complaining about people wanting student loan forgiveness. Either the government should bail struggling people out or they should no it’s just exhausting seeing people bend over backwards defending bailouts for every one except students

[mspart]

So you want no one getting bailouts.   I would be in pretty good agreement with that. 

mspart

[JimmySpeaks]

Wokester libs should be showering the orange man with praise.  

[Paul158]

47 minutes ago, braves121 said:

The logical fallacy is the president picking winners and losers while complaining about people wanting student loan forgiveness. Either the government should bail struggling people out or they should no it’s just exhausting seeing people bend over backwards defending bailouts for every one except students

So, the students who have been grown adults since they turned 18. Why did they decide to go to college for 4 years or more and rack 40 to 100 thousand dollars in debt? Wasn't supposed to help them get better paying jobs? They decided on the degree they wanted to get. Right. What is preventing from going out and getting a good job in their field of study. Then they could get a car, a cell phone, a place to stay, food and they could start paying off their student loan. You agree they are smart, hard workers, well educated and highly motivated. Shouldn't they be able to knock down 70K,80K or 120K a year. Why not. They are smart and they have a degree. Just a question. Is there something either physically or mentally wrong with them that can't work? Maybe they are unable manage their money. Maybe they should have taken a personal finance class while in high school and a class on basic economics.  wouldn't have hurt.

[Offthemat]

Private lenders may avoid certain disciplines that have a lower rate of repayment.  The schools should be the lender for the low return courses. 

[mspart]

Business loans go through all of that.   What is the loan for?   What is the plan?   How will you pay this back?

The problem is that student loans are not a one loan operation.   Each semester or year they have to grab more money and there is little accounting for where it goes.   Much of it goes to tuition and housing.   But a good part of it goes to living expenses.   Which are not small for today's college students.    There is little accountability throughout the process.   So after two years, there should be an accounting.   What major are you going into?  Women's studies?  We don't have any more money for that.   Oh you meant Pre-Med?   We have funding for that.   Engineering?   We have funding for that.  Gender diaspora studies?   We have quarter funding for that?   etc etc.    Pretty soon the kid leaves college or is on a better track for professional attainment.  

If a kid can show that his/her English degree will be parlayed into an MBA, then there is probably funding for that.   It all depends on the plan and if it makes financial sense to the loan agency.  

mspart

Edited 7 hours ago by mspart

[Caveira]

2 minutes ago, mspart said:

Business loans go through all of that.   What is the loan for?   What is the plan?   How will you pay this back?

The problem is that student loans are not a one loan operation.   Each semester or year they have to grab more money and there is little accounting for where it goes.   Much of it goes to tuition and housing.   But a good part of it goes to living expenses.   Which are not small for today's college students.    There is little accountability throughout the process.   So after two years, there should be an accounting.   What major are you going into?  Women's studies?  We don't have any more money for that.   Oh you meant Pre-Med?   We have funding for that.   Engineering?   We have funding for that.  Gender diaspora studies?   We have quarter funding for that?   etc etc.    Pretty soon the kid leaves college or is on a better track for professional attainment.  

mspart

Or even worse.   What if their grades stink.  AND they major in something financially silly like gender studies.  

[Paul158]

51 minutes ago, mspart said:

Business loans go through all of that.   What is the loan for?   What is the plan?   How will you pay this back?

The problem is that student loans are not a one loan operation.   Each semester or year they have to grab more money and there is little accounting for where it goes.   Much of it goes to tuition and housing.   But a good part of it goes to living expenses.   Which are not small for today's college students.    There is little accountability throughout the process.   So after two years, there should be an accounting.   What major are you going into?  Women's studies?  We don't have any more money for that.   Oh you meant Pre-Med?   We have funding for that.   Engineering?   We have funding for that.  Gender diaspora studies?   We have quarter funding for that?   etc etc.    Pretty soon the kid leaves college or is on a better track for professional attainment.  

If a kid can show that his/her English degree will be parlayed into an MBA, then there is probably funding for that.   It all depends on the plan and if it makes financial sense to the loan agency.  

mspart

Excellent. good stuff.

[headshuck]

Excellent. good stuff.

Should be pinned. Published as an Op-Ed.

[Paul158]

49 minutes ago, Caveira said:

Or even worse.   What if their grades stink.  AND they major in something financially silly like gender studies.  

If I was a bank loaning in the money i would require up to date data (every 2 weeks) on the grades and students progress in general. It would all be in the loan agreement. I would also require a co-signer on all loans. 

[Wrestleknownothing]

53 minutes ago, Paul158 said:

If I was a bank loaning in the money i would require up to date data (every 2 weeks) on the grades and students progress in general. It would all be in the loan agreement. I would also require a co-signer on all loans. 

This would be an awful way to do banking. The cost of servicing this loan would be so high they couldn't afford to make the loan. And what would happen after the first bad grade report? If the bank cuts off the student causing them to drop out then the bank has hurt their own position. There is no collateral on student loans. The whole point of these loans is that the government decides it is good to have educated citizens. No bank would ever make a loan like that, which is precisely why it requires government backing.

There are a whole lot of simplistic takes on this thread. And there is a lot of hypocrisy. Anyone on this thread that has a conforming mortgage only gets the rate they get (lower) because the goverment, in the form of Fannie Mae and Freddie Mac, backs that mortgage. The government decided home ownership was good, just as it did for education, and so it subsidizes the activity with credit enhancements and tax breaks. 

And anyone who thinks banks are buying existing student loans does not understand banking. Private equity, private credit, and pension funds advised by private credit managers would be the buyers. They would pay pennies on the dollar for these loans.

Remember that there is no collateral, meaning private credit funds will price in the expectation of large loses. The government will take large loses if it sells the portfolio of loans, even those that are performing. This is probably why they have not sold them yet. It may be cheaper to forgive some loans than to sell them all at a lose.

Finally, the issue is not the students. The issue is the schools. The cost of higher education is inflated because the schools get paid up front. They take no loses when the student gets a worthless degree and fails to get a job. This is the very definition of moral hazard. The logical result is you get degree mills that have graduation rates below 10% and everyone taking loans. Unless, and until, the schools are made to bear risk this will keep happening. 

And for the dummies who want to make it about gender studies, or other dumb dog whistle crap, Nazarene Bible College has one of the top default rates among it's students at 13%. Meanwhile Harvard has a 0% default rate.

[Paul158]

1 hour ago, Wrestleknownothing said:

This would be an awful way to do banking. The cost of servicing this loan would be so high they couldn't afford to make the loan. And what would happen after the first bad grade report? If the bank cuts off the student causing them to drop out then the bank has hurt their own position. There is no collateral on student loans. The whole point of these loans is that the government decides it is good to have educated citizens. No bank would ever make a loan like that, which is precisely why it requires government backing.

There are a whole lot of simplistic takes on this thread. And there is a lot of hypocrisy. Anyone on this thread that has a conforming mortgage only gets the rate they get (lower) because the goverment, in the form of Fannie Mae and Freddie Mac, backs that mortgage. The government decided home ownership was good, just as it did for education, and so it subsidizes the activity with credit enhancements and tax breaks. 

And anyone who thinks banks are buying existing student loans does not understand banking. Private equity, private credit, and pension funds advised by private credit managers would be the buyers. They would pay pennies on the dollar for these loans.

Remember that there is no collateral, meaning private credit funds will price in the expectation of large loses. The government will take large loses if it sells the portfolio of loans, even those that are performing. This is probably why they have not sold them yet. It may be cheaper to forgive some loans than to sell them all at a lose.

Finally, the issue is not the students. The issue is the schools. The cost of higher education is inflated because the schools get paid up front. They take no loses when the student gets a worthless degree and fails to get a job. This is the very definition of moral hazard. The logical result is you get degree mills that have graduation rates below 10% and everyone taking loans. Unless, and until, the schools are made to bear risk this will keep happening. 

And for the dummies who want to make it about gender studies, or other dumb dog whistle crap, Nazarene Bible College has one of the top default rates among it's students at 13%. Meanwhile Harvard has a 0% default rate.

So, in the end there is no feasible solution to ever fixing this problem. The colleges will never lower there prices and the federal government (the taxpayer) will always continue bank rolling the loans with little or no restrictions. I think in the last go around 5.3 million borrowers received 188.8 billion dollars of loan forgiveness.

[headshuck]

Meanwhile Harvard has a 0% default rate.

When you have a $60 billion endowment you can afford the insurance policies to ensure any rate you want.

[Caveira]

3 hours ago, Wrestleknownothing said:

And for the dummies who want to make it about gender studies, or other dumb dog whistle crap, Nazarene Bible College has one of the top default rates among it's students at 13%. Meanwhile Harvard has a 0% default rate.

Financially dumb majors on both sides of the aisle.  No worries.  
 

are stats sometimes disengenuous?
 

Harvard University's federal student loan cohort default rate is 0%. This is due to the university's no-loan financial aid policy, which meets 100% of demonstrated need through grants instead of loans.

Edited 1 hour ago by Caveira