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comment by steve
steve  ·  4808 days ago  ·  link  ·    ·  parent  ·  post: Obama Taking On Student Loan Debt
this speech is being given very near my home, and I'm bummed that I can't go (need a student or faculty ID to get tickets AND to attend). Though I don't count myself an Obama "fan", I do respect him and the things he is trying to do. I'll be very interested in what comes of the speech, what he says, and how it is received.

I'm a little skeptical about the whole thing. I paid off student loans... and it sucked. But it was up to me to balance the risk vs. rewards. I like easing the student loan burden, but I don't like the idea of subsidizing some kids decision to get a masters in english lit only to complain that he/she can't afford to repay that on an English teacher's salary. There has to be a balance somewhere. Equal parts "yes Johnny, we will cap your student loan repayment" and "no Johnny, you won't make $90k/year to repay the loan for a masters in the history flip book animation".

I don't know how to implement that balance.





b_b  ·  4808 days ago  ·  link  ·  
"I like easing the student loan burden, but I don't like the idea of subsidizing some kids decision to get a masters in english lit only to complain that he/she can't afford to repay that on an English teacher's salary. There has to be a balance somewhere."

Talking long term about balance is good, as it has been pointed out recently that psychology and communications majors outnumber engineering majors. This isn't really sustainable, and going forward having categories of loans for different majors is something to consider. However, for the current proposal, the President isn't talking about education policy; he's talking about fiscal stimulus. Therefore, it is merely punitive if we start saying that Person X should get favorable loan terms by virtue of their computer science advanced degree, while Person Y does not, because they hold a bachelor of arts in the humanities.

thenewgreen  ·  4808 days ago  ·  link  ·  
I don't know how to implement the "balance" either but I do think there are flaws that fall outside of the "Johnny" example. One flaw is that over the lifespan of the loan (some over 20 years) the interest rate can be raised as well as the percentage of income that can be collected. This isn't right. Plus, I don't think it's right that income is determined on a household basis. My wife and I are literally considering getting a "divorce" on paper because it will save us roughly $12,000 a year. -if you consider that the $12k could be used to procure an appreciable investment, the divorce becomes a pragmatic option. -This shouldn't be the case.