Refinancing a loan is one of those no-brainers that every financial analyst (even the ones on Fox) will tell you to do if the numbers are right. Unfortunately, for federally secured student loans, students can't refi unless the laws get changed.
And since such refinancing would actually cost the US Treasury (the US Government would be paid back less), supporters of the loan reform bill had to find out a way fund it — because, you know, the GOP insists on balancing all spending increases from somewhere else, but conveniently ignores funding tax cuts because they claim they help the economy; it seems to me that cutting someone's loan rate would serve the same as a tax cut, but, hey, it's the GOP.
And, of course, they rejected it anyway, because it was the Buffett Rule to require a minimum income tax rate for the super-wealthy. Who, after all, need that money to pay for their kids' student loans.
Reshared post from +Les Jenkins
Just remember when it comes time to vote: Republicans care more about rich people than they do the average American trying to go to college without taking on crushing debt in the process.
Senate GOP Kills Student Loan Reform
Earlier this week, President Obama took a series of steps to ease the burden of student debt. But the most important step, allowing students to refinance their debts, requires Congressional action…
Dave, again the whole point is to return the US to where it was prior to 09/14/1901. Back when the middle class were the doctors and the lawyers, and only they and the wealthy could afford to send their kids to collage. So, now since only the wealthy can afford to send their kids to collage without taking out loans…and since kids of the wealthy do not have to worry about getting an education in a field that will allow them to pay off those loans in a reasonable amount of time (in thier 40s), only the wealthy will be able to dabble in the liberal arts and humanities vs STEM. Any kid from the middle class or lower classes that plans on going to collage taking out loans to do so and NOT getting a STEM degree is going to be a long term burden to not only their parents but to society in general.
As it stands now, there are several non-degree career choices that are going to way better off in the long run, than taking out a loan to go to collage and paying off debt at a high percentage rate for the rest of your life. The sad part is that the GOP is being very short-sighted (but I repeat myself) in failing to understand that coming out of collage with a huge debt load keeps grads from being able buy cars and houses and getting into the middle class like their grand parents were able to do so easily.
But, I guess when your goal is to create a new gilded age, all that matters is “I got mine, screw you”.
"Sen. Mike Lee, Utah Republican, has introduced a proposal that would fundamentally restructure accreditation — a reform that holds the prospect of dramatically reducing college costs, while increasing access to higher education for aspiring students."
"By contrast, Ms. Warren’s refinancing proposal does nothing for current and future students. It only serves to further burden taxpayers, and to give universities license to hike tuition and fees even higher."
I'll be glad to "remember this" when it comes time to vote. Putting a band-aid on something so you can use it as a political talking point isn't going to help anyone.
http://www.washingtontimes.com/news/2014/jun/9/burke-elizabeth-warren-leaves-taxpayers-on-hook-fo/?page=1
+Mark Means _'Putting a band-aid on something so you can use it as a political talking point isn't going to help anyone.'_
Except for the folks who already have loans, for whom reforming accreditation practices will do nothing. That's over a trillion dollars of accumulated debt, which the federal government is profiting in tens of billions of dollars a year.
Lee's proposal, by the way, lets states set up their own accreditation for higher education facilities, rather than having a uniform process that people across the nation can rely upon (though all of them would still be eligible for federal loan money). I don't see anything there (http://www.lee.senate.gov/public/index.cfm/2014/1/lee-introduces-bill-to-expand-higher-education-opportunities) that specifically drives down costs, unless it means letting states pick cheaper (in various senses of the word) institutions to treat the same as, say, four-year colleges.
And all that said, I have no problem with looking at the reason for higher education costs, though I strongly doubt telling the states to just diddle around on their own and see if they come up with a system that's both cheaper and provides a quality education is going to be the lynchpin of the solution. But none of those things do anything for the students and graduates currently in debt — a debt they are not allowed, by law, to refinance as any other debtor can.
Well, and I know this also does nothing to really help, but they knew what they were getting into when they took the loan. I mean, they're told the interest rate and the terms up front, correct?
Warren's plan isn't going to help those currently in debt, either.
+Mark Means As I understand it, it allows the loans to be refinanced at the current (low) rates. That does, in fact, help. It doesn't relieve them of the principal debt, but I think that's fair. But the interest payments could be reduced.