Want to stimulate the economy? Forgive student debt

  • Article by: WY SPANO
  • Updated: January 28, 2009 - 3:01 PM

Over the last 30 years, American higher education policy seems to have been designed to ensure poor economic performance in this country. In the economic stimulus package now being discussed, we can begin to reverse that course.

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ANFANGSJan. 28, 09 3:26 PM

PAY OFF MY MORTGAGE ! ONLY A ONE TIME BAIL OUT !

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jamkorJan. 28, 09 3:36 PM

would be to allow people to reconsolidate thier loans at the current market rates. Unklike other loans, student loans can only bo consolidated once and then the interest rate is locked. I am currently at 7.5%. I want to pay my debt, but would like to be able to reconsolidate (refinance) at the lower rates of today. That would be an easy change to make and would have a significant impact for those who couldn't get free school (name your reason), or whose parents couldn't afford to pay for it.

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rmjeffersonJan. 28, 09 3:40 PM

The problem is the cost of tuition, not who pays for it. Maybe you so called "academics" should take a pay cut or figure out some other way to get tuition under control.

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btwnthelinesJan. 28, 09 3:52 PM

jamkor - You can only refinance once? That just stinks. If homes can be refinanced multiple times, why not student loans? rmjefferson - Umm...the academics are all in debt because they have to have phD's. Or, because they would get stolen by other industries (pharmaceuticals, oil companies, etc) that are willing to pay more for the phD. Thanks for playing. Try again soon.

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jbkp4582Jan. 28, 09 4:23 PM

refinance or consolidate some of my student loans...but my credit isn't the best and because of the crisis, no banks will consolidate. My husband consolidated all but one loan with Citibank about a year ago...he called to do another one, and they told him they don't do consolidations anymore. I would love my federal loan debt to be forgiven. That would save my family about 60K.

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muffinbouffaJan. 28, 09 4:31 PM

Almost - I can't imagine a lot of philisophy and English PhDs are being stolen out of academia to become captains of industry. Try again. A much larger problem is the role of unions inflating professor/staff salaries. Carlson tuition went up 7.5% last year. That is *slightly* higher than inflation. Tuition has been rising at around double digit growth for years. Now that all students are on loans for years anyway, there is little incentive to cap costs.

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eterrellJan. 28, 09 4:39 PM

Jamkor, If you are still with one of the federal programs you can enter another repayment program, such as "income contingent" or ask for extended payments. If you refinanced through a private lender, then you can look for another private lender to refinance with, like any loan. RMJefferson-your ignorant swipe aside (why "so called?" do you even know what an "Academic" is? It just means someone who works in an academy, like a college) the starting salary for an entry level professor in the liberal arts hovers between 20,000 and 30,000.00. That is if they get paid for the whole year. Otherwise, they get about 3/4 of that. Many of these young teachers are trying to start their lives with young families, while they try to pay off their own student loans. Explain please exactly how much of this apparently exorbitant salary, in your eyes, should be cut? Tuition costs cover more than the teacher salaries, it's the buildings and the equipment, the grounds, the support staff, and the busses, and the dorms, and the food service on and on, that make the learning possible.

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btwnthelinesJan. 28, 09 4:48 PM

Yeah, the philosophy and english professors are such a high percentage of university staff, and receive such high compensation, that they're breaking the bank. Check the article about disparity between professor's compensation, then try again. [http://mailman1.u.washington.edu/pipermail/pophealth/2003-May/000560.html] And how many professor unions are there? Googling a few different related phrases brings up no conclusive results. Are you sure you're not thinking of elementary and secondary ed? And do you have any facts about the difference between unionized and non-unionized staff salaries, or do you just hate unions b/c a talking head told you to?

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Minneapple18Jan. 28, 09 5:18 PM

Go to any decent college or university and look around. The best of everything is seen: latest computers and networks; exercise facilities with the latest equipment; apartment-like dorms; emaculate sports areanas; and last, but not least, vastly overpaid professors, many of whom have guaranteed jobs for life. The cost of higher education is the problem that has to be solved before you start giving it away--any easing of payment burdens on students will just reinforce egregious spending by universities and colleges. It will make the problem worse.

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muffinbouffaJan. 28, 09 5:29 PM

Doesn't it make sense that a professor of business makes more than a professor of English? There is an actual market for business professionals, but a tiny market for English professors. Do you think people go into "English" as a profession to make a lot of money? Me neither. There may or may not be a professor's union, but there certainly is tenure. Once a professor gets that, there is little that can be done to remove her.

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