PELL Grant changes

[tangent4ronpaul]

No aid during summer sessions

Students will be accumulating interest on loans while attending school, rather than having it deferred till after.

Cap on total aid of, IIRC, 150 Thousand.

What effect will this have on higher education?

Students already have underwater loans and 20% unemployment (official figures, so assume 40%) and are not able to get jobs post college.

College tuition continues to rise, outpacing inflation / cost of living.

No more earmarks - which are a major source of college handouts / funding.

Not addressed is that tuition started skyrocketing with the creation of Pell Grants and risk aversion as well as regulations have also helped drive up costs. Also, teachers unions and the tenure system.

Discussion?

-t

[bobbyw24]

http://goo.gl/HVdmc

[nobody's_hero]

I have to say, it's gonna get tempestuous.

Ultimately it will come down to colleges having to renegotiate tuition rates, or risk losing tons, TONS, of students (myself probably being one).

GA's HOPE grant is going through some changes right now, and they've decided they'll have to cut 25% of the funding for each student (if the bill passes).

The other factor is inflation. Not only is 'easy money' (grants/deferred loans/scholarships) driving up the cost of tuition, but also the dropping value of the dollar, as well. Take away the grants while the inflation still remains and you aren't going to see anyone going to college for the next few years. It's going to come down to making a choice between groceries or degrees.

(not a rationalization of PELL grants, just my personal prediction as to what will happen)

[tangent4ronpaul]

http://goo.gl/HVdmc

:eek:

I didn't know this!

MW: Is it possible to "walk away" from a student loan and declare bankruptcy?

Alan Nasser--- No, it's not possible for student debtors to escape financial devastation by declaring bankruptcy. This most fundamental of consumer protections would have been available to student debtors were it not for legislation explicitly designed to withhold a whole range of basic protections from student borrowers. I'm not talking only about bankruptcy protection, but also truth in lending requirements, statutes of limitations, refinancing rights and even state usury laws – Congress has rendered all these protections inapplicable to federally guaranteed student loans. The same legislation also gave collection agencies hitherto unimaginable powers, for example to garnish wages, tax returns, Social Security benefits and -believe it or not- Disability income. Twisting the knife, legislators made the suspension of state-issued professional licenses, termination of public employment and denial of security clearances legitimate measures to enable collection companies to wring financial blood from bankrupt student-loan borrowers. Student loan debt is the most punishable of all forms of debt - most of those draconian measures are unavailable to credit card companies. (Maybe I'm being too harsh. Sallie Mae recently announced that it will after all forgive a debt under either of two conditions: in case the borrower dies or becomes totally disabled.)
[...]

Looks like some really good ammo to win students votes, but we also need a viable solution. Anyone know if Paul has one?

-t

[Elwar]

I manipulated the grant and loan system during college. I used to sign up for my classes, submit my student aid based on the amount of credits, then about a week before classes started I'd drop a bunch of classes.

I also had a buddy who dropped out of school and didn't have money to pay back his loans so he just made sure to take an easy class once a semester so that his loan payments were put off longer since he was still a "student".

[bobbyw24]

The law is--to oversimplify it--to discharge a student loan in bankruptcy, the debtor must be permanently and totally disabled.

11 USC 523(a)(8)

34 CFR 682

[HOLLYWOOD]

President Obama will be on at 10:15AM ET to spew his propaganda on the 2012 budget... it's a total joke. Says he's saving $1.1 trillion over 10 years... the budget itself runs up $1.65 Trillion deficit this year.

The speech will be another smoke and mirrors, about how the Obama regime has increased PELL grants, blah, blah, and aid, not to focus on the education cuts... he'll focus on that... typical bullshit by all these puppets on teleprompters. The magical art of public manipulation... just you watch

lol: $78 Billion in DOD cuts over 5 years on expenditure total of $4 TRILLION. :rolleyes:

$100 Billion cut in PELL grants.

[Chieppa1]

Well, since half the kids that go to college go to booze....when they bitch about tuition and being in debt, they should have to take an economics quiz about how who/what/how their college is being paid for.

College in this country is embarrassing and a scam. I'm 24 and I know that.

[tangent4ronpaul]

Of the 1 Trillion "savings", 400 Billion of it is because of a budget freeze. Not increasing the budget is not exactly waht I call savings and cuts.

-t

[Chieppa1]

Of the 1 Trillion "savings", 400 Billion of it is because of a budget freeze. Not increasing the budget is not exactly waht I call savings and cuts.

-t

yeah, but its all about what Barry calls it, and how he says it.

[Elwar]

Of the 1 Trillion "savings", 400 Billion of it is because of a budget freeze. Not increasing the budget is not exactly waht I call savings and cuts.

-t

Well, if he cut $400 billion...he might as well just go all the way with the other $100 billion and support Rand Paul's proposed budget.

[tangent4ronpaul]

Well, if he cut $400 billion...he might as well just go all the way with the other $100 billion and support Rand Paul's proposed budget.

The catch is Obama's cuts / "savings" are over 10 years. Rands are over 1 year.

-t

[RileyE104]

I manipulated the grant and loan system during college. I used to sign up for my classes, submit my student aid based on the amount of credits, then about a week before classes started I'd drop a bunch of classes.

I also had a buddy who dropped out of school and didn't have money to pay back his loans so he just made sure to take an easy class once a semester so that his loan payments were put off longer since he was still a "student".

The problem with this is that in Texas there's a six-drop limit now.


Anyways, I know we need to get spending under control, but why the fuck do we have to cut HERE, at home, FIRST? All the fucking money we waste overseas and our leaders want to cut down on US instead. Stupid bastards.

And at least Rand's proposal isn't just bullshitting around. Plus his proposal didn't even touch PELL Grants if I'm correct...
But who wants to bet that the media is going to try and blame him when students start getting mad.

[Elwar]

The problem with this is that in Texas there's a six-drop limit now.


Anyways, I know we need to get spending under control, but why the fuck do we have to cut HERE, at home, FIRST? All the fucking money we waste overseas and our leaders want to cut down on US instead. Stupid bastards.

And at least Rand's proposal isn't just bullshitting around. Plus his proposal didn't even touch PELL Grants if I'm correct...
But who wants to bet that the media is going to try and blame him when students start getting mad.

Everywhere needs to be cut.

I'd move more toward easier access to loans and less grants but that's just me. Sucks but the schools are overpriced because of the student aid being provided.

Dave Ramsey encourages people to shop around for their schools, go to community college for a few years before going to the University level, etc...