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Archive for the tag “student loans”

Students Soaked for Obamacare

In a little-known provision of Obamacare, student loan money is being diverted to help underwrite the enormous costs associated with the new and bureaucratic federal health mandates. If this provision were to be scrapped, students would see about a 20 percent reduction in the interest charged on their loan repayments. Pundit Dick Morris explains.

Student Loan Write-offs?

Student loans are difficult to repay in a sluggish economy, and many recent graduates are struggling under considerable debt. One proposal is forgiving student loans, but Prof. Daniel Lin argues that debt forgiveness does not resolve the underlying causes of rising student debt, and therefore cannot prevent future debt problems.

Instead of debt forgiveness, Prof. Lin suggests making student loans like other types of loans: dischargeable in bankruptcy. This places the burden on lenders to ensure that students are not taking more debt than they can handle. While it would lead to a reduction in the amount of loan dollars awarded and increase interest rates, these are natural incentives that encourage borrowers to be more careful right now, and in the future, which puts pressure on colleges and universities to control their costs. H/T LearnLiberty

The Higher Education Bubble

Intended to help students get a higher education, federal subsidies to colleges and universities have instead triggered continually rising costs. Professor Daniel Lin notes that many college students face repaying a mountain of debt upon graduating. Some end up working jobs that don’t require a degree. Even worse, 40 percent of college students drop out without earning a degree, but that does not free them from the debt they have accumulated. A policy that worsens the problem it is supposed to fix should be eliminated, Lin argues. H/T LearnLiberty

Going Broke By Degree

There is more than $1 trillion in student loan debt outstanding, and it keeps going higher, as does the cost of college tuition. Are we in the midst of a massive student loan bubble, and can universities continue to provide costly educations that burden graduates with a lifetime of debt? Will the federal government bail out struggling graduates? Find out on this InstaVision as Richard Vedder, author of Going Broke By Degree, talks to Glenn Reynolds.

College Costs Skyrocketing

It’s no secret that U.S. college tuition costs are rising dramatically, and the high cost of a college education burdens young people and their families. How can we make college more affordable?

Many suggest that the best way to keep tuition affordable is by increasing government assistance through student loans, grants and tax credits for education. American University Professor Daniel Lin shows that doing so will actually lead to higher college costs, because loans/grants/tax credits are directly related to the increasing cost of education.

Before we can find any solution, it is important to understand the root cause of the rising prices. Lin finds that increased demand—fueled by improved job prospects for graduates and increased government assistance—is to blame for soaring tuition prices. H/T LearnLiberty

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