gllahone84
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I know someone that's still trying to recover from messing with Capella University...
One part of the problem in US
- Thread in 'General' Thread starter Started by antbanks81,
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TI said it best in a song "school just a white mans game and its ran good"
http://www.huffingtonpost.com/2013/05/14/obama-student-loans-policy-profit_n_3276428.html
(forgot how to do spoiler, read at your own risk)
The Obama administration is forecast to turn a record $51 billion profit this year from student loan borrowers, a sum greater than the earnings of the nation's most profitable companies and roughly equal to the combined net income of the four largest U.S. banks by assets.
Figures made public Tuesday by the Congressional Budget Office show that the nonpartisan agency increased its 2013 fiscal year profit forecast for the Department of Education by 43 percent to $50.6 billion from its February estimate of $35.5 billion.
Exxon Mobil Corp., the nation's most profitable company, reported $44.9 billion in net income last year. Apple Inc. recorded a $41.7 billion profit in its 2012 fiscal year, which ended in September, while Chevron Corp. reported $26.2 billion in earnings last year. JPMorgan Chase, Bank of America, Citigroup and Wells Fargo reported a combined $51.9 billion in profit last year.
The estimated increase in the Education Department's earnings from student borrowers and their families may cause a political firestorm in Washington, where members of Congress and Obama administration officials thus far have appeared content to allow students to line government coffers.
The Education Department has generated nearly $120 billion in profit off student borrowers over the last five fiscal years, budget documents show, thanks to record relative interest rates on loans as well as the agency's aggressive efforts to collect defaulted debt. Representatives of the Education Department and Congressional Budget Office could not be reached for comment after normal business hours.
The new profit prediction comes as Washington policymakers increasingly focus on soaring student debt levels and the record relative interest rates that borrowers pay as a potential impediment to economic growth. Regulators and officials at agencies that include the Federal Reserve, Treasury Department, Consumer Financial Protection Bureau and Federal Reserve Bank of New York have all warned that student borrowing may dampen consumption, depress the economy, limit credit creation or pose a threat to financial stability.
At $1.1 trillion, student debt eclipses all other forms of household debt, except for home mortgages. It's also the only kind of consumer debt that has increased since the onset of the financial crisis, according to the New York Fed. Officials in Washington are worried that overly indebted student borrowers are unable to save enough to purchase a home, take out loans for new cars, start a business or save enough for their retirement.
Policymakers also are worried about the effect that high interest rates on outstanding student debt may have on the broader economy. Congress sets interest rates on federal student loans, with rates fixed on the majority of loans at 6.8 and 7.9 percent.
But as the Federal Reserve attempts to lower borrowing costs for everyone from households and small businesses to large corporations and Wall Street banks, student borrowers have not been able to benefit.
Compared to a benchmark interest rate -- what the U.S. government pays to borrow for 10 years -- student borrowers have never paid more, increasing the burden of their student debt as wage increases and yields on investments and bank accounts fail to keep up with the relative increase in student loan interest payments.
President Barack Obama recently asked Congress to tie federal student loan interest rates to the U.S. government's borrowing costs. In a possible sign of congressional intent, leading Democratic senators on Tuesday proposed legislation that would keep existing interest rates on some student loans for the neediest households fixed at 3.4 percent, rather than allowing them to revert back to their original 6.8 percent rate.
The legislation, dubbed the "Student Loan Affordability Act" and proposed by Senate Majority Leader Harry Reid (D-Nev.), Sen. Patty Murray (D-Wash.), Sen. Jack Reed (D-R.I.), and Sen. Tom Harkin (D-Iowa), aims to help a small subset of future student borrowers who take out loans over the next two years. The bill does nothing for existing student debtors.
"Today's figures from the CBO underscore the urgent need for Congress to prevent the July 1 interest rate hike and address the crushing debt placed on students," said Tiffany Edwards, spokeswoman for Democrats on the House Education and Workforce Committee.
Rohit Chopra, the Consumer Financial Protection Bureau official overseeing the regulator's student debt efforts, has warned policymakers to not focus solely on future borrowers.
“The whole student loan problem is a problem that should be of deep concern to this body,” said Richard Cordray, CFPB director, during testimony last month before the Senate Banking Committee. “These are young people that we should care a great deal about.”
“They’re the ones with the ambition, aspirations and dreams, and they're getting saddled with debt that they don't understand,” Cordray said of student borrowers. “It's holding them back and it's making them unable to rise and succeed and become leaders in our society.”
He added: “It's a significant problem and we're going to be doing everything that we can to address it at the bureau.”
The CFPB has been focusing on helping existing borrowers refinance high-rate debt or modify the terms of their loans. In a report earlier this month, the CFPB lamented that borrowers are unable to refinance their obligations after they have graduated from college and secured well-paying jobs.
"Corporate entities, homeowners, and many others have been able to refinance debt at quite low rates, and student loan borrowers are wondering why they can't do the same," Chopra said.
The CFPB suggests that increased concentration in the student loan market may inhibit refinancings and debt workouts. Lenders and the Education Department profit when borrowers pay higher rates than they otherwise would in a normally-functioning market.
Unlike traditional lenders, though, the Education Department's profits are barely dented by loan defaults. For loans made in 2013 that eventually default, the department estimates it will recover between 76 cents and 82 cents on the dollar. Bankruptcy rarely discharges student debt.
The Education Department's collection efforts are aided by loan default specialists, including NCO Group Inc., a company owned by JPMorgan.
http://www.huffingtonpost.com/2013/05/14/obama-student-loans-policy-profit_n_3276428.html
(forgot how to do spoiler, read at your own risk)
The Obama administration is forecast to turn a record $51 billion profit this year from student loan borrowers, a sum greater than the earnings of the nation's most profitable companies and roughly equal to the combined net income of the four largest U.S. banks by assets.
Figures made public Tuesday by the Congressional Budget Office show that the nonpartisan agency increased its 2013 fiscal year profit forecast for the Department of Education by 43 percent to $50.6 billion from its February estimate of $35.5 billion.
Exxon Mobil Corp., the nation's most profitable company, reported $44.9 billion in net income last year. Apple Inc. recorded a $41.7 billion profit in its 2012 fiscal year, which ended in September, while Chevron Corp. reported $26.2 billion in earnings last year. JPMorgan Chase, Bank of America, Citigroup and Wells Fargo reported a combined $51.9 billion in profit last year.
The estimated increase in the Education Department's earnings from student borrowers and their families may cause a political firestorm in Washington, where members of Congress and Obama administration officials thus far have appeared content to allow students to line government coffers.
The Education Department has generated nearly $120 billion in profit off student borrowers over the last five fiscal years, budget documents show, thanks to record relative interest rates on loans as well as the agency's aggressive efforts to collect defaulted debt. Representatives of the Education Department and Congressional Budget Office could not be reached for comment after normal business hours.
The new profit prediction comes as Washington policymakers increasingly focus on soaring student debt levels and the record relative interest rates that borrowers pay as a potential impediment to economic growth. Regulators and officials at agencies that include the Federal Reserve, Treasury Department, Consumer Financial Protection Bureau and Federal Reserve Bank of New York have all warned that student borrowing may dampen consumption, depress the economy, limit credit creation or pose a threat to financial stability.
At $1.1 trillion, student debt eclipses all other forms of household debt, except for home mortgages. It's also the only kind of consumer debt that has increased since the onset of the financial crisis, according to the New York Fed. Officials in Washington are worried that overly indebted student borrowers are unable to save enough to purchase a home, take out loans for new cars, start a business or save enough for their retirement.
Policymakers also are worried about the effect that high interest rates on outstanding student debt may have on the broader economy. Congress sets interest rates on federal student loans, with rates fixed on the majority of loans at 6.8 and 7.9 percent.
But as the Federal Reserve attempts to lower borrowing costs for everyone from households and small businesses to large corporations and Wall Street banks, student borrowers have not been able to benefit.
Compared to a benchmark interest rate -- what the U.S. government pays to borrow for 10 years -- student borrowers have never paid more, increasing the burden of their student debt as wage increases and yields on investments and bank accounts fail to keep up with the relative increase in student loan interest payments.
President Barack Obama recently asked Congress to tie federal student loan interest rates to the U.S. government's borrowing costs. In a possible sign of congressional intent, leading Democratic senators on Tuesday proposed legislation that would keep existing interest rates on some student loans for the neediest households fixed at 3.4 percent, rather than allowing them to revert back to their original 6.8 percent rate.
The legislation, dubbed the "Student Loan Affordability Act" and proposed by Senate Majority Leader Harry Reid (D-Nev.), Sen. Patty Murray (D-Wash.), Sen. Jack Reed (D-R.I.), and Sen. Tom Harkin (D-Iowa), aims to help a small subset of future student borrowers who take out loans over the next two years. The bill does nothing for existing student debtors.
"Today's figures from the CBO underscore the urgent need for Congress to prevent the July 1 interest rate hike and address the crushing debt placed on students," said Tiffany Edwards, spokeswoman for Democrats on the House Education and Workforce Committee.
Rohit Chopra, the Consumer Financial Protection Bureau official overseeing the regulator's student debt efforts, has warned policymakers to not focus solely on future borrowers.
“The whole student loan problem is a problem that should be of deep concern to this body,” said Richard Cordray, CFPB director, during testimony last month before the Senate Banking Committee. “These are young people that we should care a great deal about.”
“They’re the ones with the ambition, aspirations and dreams, and they're getting saddled with debt that they don't understand,” Cordray said of student borrowers. “It's holding them back and it's making them unable to rise and succeed and become leaders in our society.”
He added: “It's a significant problem and we're going to be doing everything that we can to address it at the bureau.”
The CFPB has been focusing on helping existing borrowers refinance high-rate debt or modify the terms of their loans. In a report earlier this month, the CFPB lamented that borrowers are unable to refinance their obligations after they have graduated from college and secured well-paying jobs.
"Corporate entities, homeowners, and many others have been able to refinance debt at quite low rates, and student loan borrowers are wondering why they can't do the same," Chopra said.
The CFPB suggests that increased concentration in the student loan market may inhibit refinancings and debt workouts. Lenders and the Education Department profit when borrowers pay higher rates than they otherwise would in a normally-functioning market.
Unlike traditional lenders, though, the Education Department's profits are barely dented by loan defaults. For loans made in 2013 that eventually default, the department estimates it will recover between 76 cents and 82 cents on the dollar. Bankruptcy rarely discharges student debt.
The Education Department's collection efforts are aided by loan default specialists, including NCO Group Inc., a company owned by JPMorgan.
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crony capitalism ftw
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Remember, the country is not too "divided" to get things done. Although it's not the happiest of times, no.
The national media trolls America into thinking we are majorly divided because that sells for them. Fox News and MSNBC do not make money when we all feel good about things, agree on major points, and have likeable moderate people in office. No, they force you to "pick a team" and the team you do not pick is the enemy.
Meanwhile in reality the large majority of America agrees on many of the same basic themes for the present and the future. That sunny reality though does not make money for the suits.
The national media trolls America into thinking we are majorly divided because that sells for them. Fox News and MSNBC do not make money when we all feel good about things, agree on major points, and have likeable moderate people in office. No, they force you to "pick a team" and the team you do not pick is the enemy.
Meanwhile in reality the large majority of America agrees on many of the same basic themes for the present and the future. That sunny reality though does not make money for the suits.
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my mom still gets mad when i speak on the hustle that is a college education
the nomad
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Well, Obama is/was trying to fix that, he getting sniped at from every direction ....
. Unlike other countries, our government has been over ran by corporate America. Which is why they get educated in their country and don't have to work to obtain a piece of the dream in ours. Take a trip to Central Park and see who strolls in and out of the surrounding apartments. Hardly any of them speak English.
Yes our unemployment rate is through the roof ...but this is nothing new, Google George Washington's family history. There you will find the truth.
Yes our unemployment rate is through the roof ...but this is nothing new, Google George Washington's family history. There you will find the truth.
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Glad i live in Finland.
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am1x90xnike
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Change is paid with the blood of the oppressed. It's naive to think those in power would willing vote to change their social structure. There are some, but the self motivated outweigh the selfless. The day is coming, for as soft as Americans are, as disconnected as we are as a nation, when it happens more will be bout that life than u think. So many nations will are frothing at the mouth to aid revolution.
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Sad part is there's really nothing you can do. Between the Patriotic Act and NSA spying you can't organize and take to the streets to protest. Once the status quo is questioned you're labeled a 'terrorist' and demonized by the corporate owned media. You can say vote, but those guys are already chosen for you and bought by the same players so nothing really 'changes'. This goes back to the 'slippery slope' argument that a lot of NT'ers hate.
Speaking about student loans this article is very relevant, and it gives you some insight also probably piss you off too.
http://www.rollingstone.com/politic...ung-america-the-college-loan-scandal-20130815
Speaking about student loans this article is very relevant, and it gives you some insight also probably piss you off too.
http://www.rollingstone.com/politic...ung-america-the-college-loan-scandal-20130815
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Revolution.
Just waiting on everyone else to wake the hell up.
Just waiting on everyone else to wake the hell up.
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so whats
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so whatsyoure take on this wall of text
It's ******** when you figure those profits go straight to military and prisons yet I'm putting my **** in deferment and forbearance year after year.
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did op take pictures of the ******g picture to zoom in?
rell826
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Another anti-American and anti-college thread on NT. What's new?
You can't compare Nordic countries to the United States of America. Their situation is even unlike that of the rest of Western Europe in that its an overwhelmingly homogenous society where one race of people share the same cultural background and identity. That alone makes their way of running things different because they have a common interest. I'm also willing to bet that their college entrance system is much more rigorous than it is here in the States where even a student that averaged a D can go to school.
If you can't afford to go to a certain college, go to one you can afford. That's a big reason that there is so much student loan debt. Go to community college for two years and then transfer. How about saving for your kids college instead of scrambling for loans and taking out another mortgage on your home. $100/wk in an account for 18 years = 93,600. This is what I plan on doing with my wife should I have children. If you really want the price of college to go down, the government needs to stop subsidizing it.
You can't compare Nordic countries to the United States of America. Their situation is even unlike that of the rest of Western Europe in that its an overwhelmingly homogenous society where one race of people share the same cultural background and identity. That alone makes their way of running things different because they have a common interest. I'm also willing to bet that their college entrance system is much more rigorous than it is here in the States where even a student that averaged a D can go to school.
If you can't afford to go to a certain college, go to one you can afford. That's a big reason that there is so much student loan debt. Go to community college for two years and then transfer. How about saving for your kids college instead of scrambling for loans and taking out another mortgage on your home. $100/wk in an account for 18 years = 93,600. This is what I plan on doing with my wife should I have children. If you really want the price of college to go down, the government needs to stop subsidizing it.
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am1x90xnike
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My wha
My what?
Avy to post ratio is over 9000 sonI agree on that though.
My what?
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Well, Obama is/was trying to fix that, he getting sniped at from every direction ....
. Unlike other countries, our government has been over ran by corporate America. Which is why they get educated in their country and don't have to work to obtain a piece of the dream in ours. Take a trip to Central Park and see who strolls in and out of the surrounding apartments. Hardly any of them speak English.
Yes our unemployment rate is through the roof ...but this is nothing new, Google George Washington's family history. There you will find the truth.
More please?
Gill Baka Esq. LLC.
formerly grimlock
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I say we move to these nordic countries.
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I hate these for profit colleges. I don't know a single person who graduated from one that would recommend it. University of Phoenix is the most popular in my area and it has left some of my friends unemployed and in debt. It's their fault for not doing their research, but still.
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another college is a scam thread .. mannnn
the hater boxden
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did op take pictures of the ******g picture to zoom in?
im crying
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There is a reason our colleges are considered the 'best' though and that students from every other country in the world will do anything to attend them. I am in South Korea and the education system here is ranked #2 (for K-12). However, for university there are about 4 in country colleges that are exceptional, and beside that, every student wants to go to the US to study. Most of them can't because of their terrible English, but when you visit the schools here...they are pathetic compared to the uni's we have in the US.
Our education loan process is quite reasonable. 30 year loans, at less than 8%, with no down payment or collateral. ANYONE can afford that. The problem is our mentality...when we get money we spend it. When we don't have money we charge it. The concept of materialism is what the problem is.
Average salary for a graduating student in 2013: $44,928
Per month (after tax) take home:$36,841 or $3070
Average rent + utilities ( guesstimate): $1000 a month
Student Loan payment (30 year, 8%, 85,000): $554 a month
That means you have about $1500 in discretionary income to use on food, cars, entertainment, savings, paying back loan faster, etc. That's pretty reasonable for someone that just finished college.
People tripping about student loans. I do agree though that government spending on 'defense' is outrageous. However, it is what keeps America at #1. We spend money on a lot of silly things, but the education system isn't THAT bad.
The K-12 education system is a lot worse than the university system. K-12 needs a lot more money spent on it. We have a lot of problems there. Charter schools are a great start to fixing the problem. Teachers are underpaid, and under appreciated. If you look at all these other countries teachers are respected a lot. They get great benefits/etc. In the US they really don't. They become glorified babysitters a lot of the time. They don't have the resources, consistent training, student ratio, etc.
Our education loan process is quite reasonable. 30 year loans, at less than 8%, with no down payment or collateral. ANYONE can afford that. The problem is our mentality...when we get money we spend it. When we don't have money we charge it. The concept of materialism is what the problem is.
Average salary for a graduating student in 2013: $44,928
Per month (after tax) take home:$36,841 or $3070
Average rent + utilities ( guesstimate): $1000 a month
Student Loan payment (30 year, 8%, 85,000): $554 a month
That means you have about $1500 in discretionary income to use on food, cars, entertainment, savings, paying back loan faster, etc. That's pretty reasonable for someone that just finished college.
People tripping about student loans. I do agree though that government spending on 'defense' is outrageous. However, it is what keeps America at #1. We spend money on a lot of silly things, but the education system isn't THAT bad.
The K-12 education system is a lot worse than the university system. K-12 needs a lot more money spent on it. We have a lot of problems there. Charter schools are a great start to fixing the problem. Teachers are underpaid, and under appreciated. If you look at all these other countries teachers are respected a lot. They get great benefits/etc. In the US they really don't. They become glorified babysitters a lot of the time. They don't have the resources, consistent training, student ratio, etc.
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