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Re: FWD: Student loans threatened by Congress!!!
Robert Scott (rscott@mail.utexas.edu)
18 Feb 1995 22:50:38 GMT
In article <3hqvb8$h6@wrdis02.robins.af.mil> Walter C. Wolfe,
wwolfe@robins.af.mil writes:
> What else can you do? How about getting a job? Work part-time
>during school and full-time during the summer. Work full time and go
>to school at night. Attend a public college/university in order to
>hold costs down.
>
> There are many people who take responsibility for their own costs,
>without going to the government or getting the money from Mom and Dad.
>I'll be you could, too! I know from personal experience you tend to
>put more effort into schoolwork when you're paying for it yourself.
>
> Welcome to the real world.
>
> WW
Don't be a moron. However, you face it education costs money. At private
schools it is paid for by tuition and endowments; at public schools by
states (that is the taxpayers) and tuition. Either way education (a
decent one) costs a lot and somebody has to pay for it. We can either
have a system that is entirely pay as you go; a system where only the
wealthy or lucky can afford an education. Or, we can have a system where
society as a whole picks up part of the tab so everyone has an
opportunity to go to school, to get an education, and thereby become a
"productive" citizen. Fortunately, for the most part, we have the later
kind of system. Endowments, Pell Grants, work-study, and student loans
(especially subsidized ones) make this possible. That is why this country
is sometimes called the land of opportunity.
Think about who really wins in the student loan game. It is not just the
student. The biggest winner is the BANK. Banks get an absolutely 100%
risk free investment with a guaranteed return. Basically, they get a
direct subsidy from the federal government who pays the interest on
student loans during school and all deferments and absorbs all the risk.
That isn't capitalism. That is a giveaway. Students aren't getting some
kind of free ride. Every financial aid student I've ever known has one or
two jobs. Sometimes this means it takes longer for them to finish school
-- which means more total financial aid paid out, a higher social cost
for maintaining a system of secondary education, and, funny thing, MORE
RISK FREE INVESTMENTS for Banks.
Think about it and step into the real world yourself.
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