NathandWarren
10-04-2011, 06:12 AM
If I could only get rid of one federal department I'd get rid of the Dept of Education.
But as much as I want that to happen, so many kids my age and younger are under the delusion that the DoE is the only reason they were given an education in the first place, and that without it, they wouldn't have had the privilege of going to college. Here are some facts.
1. The current DoE was only just created in 1979 under Carter, and initiated into law under Reagan (who had vowed to abolish it). However, the Federal Govt has had its nose in education since the Civil War. http://www2.ed.gov/about/overview/fed/role.html
2. Since its current inception, College tuitions have risen 400% (While the dollar has lost 97% of its value since 1980)
http://nces.ed.gov/fastfacts/display.asp?id=76
http://inflationdata.com/inflation/i..._currentPage=2
3. SAT scores have also fallen since the 1970s though there are those who argue this is because more kids are taking them. As if taking the test was its own virtue.
http://www.theatlantic.com/national/...nt-gap/245176/
4. Those lenders who provide loans, in many cases, would RATHER the student default than pay the loan back over 20 years because when a student defaults, the Government (if the loan is like most student loans, Federally Guaranteed) is the one footed with the bill. And the Govt has a AAA... I mean AA+ credit rating which is still better than most college graduates.
And this doesn't just screw over the Govt, either. When the defaulting students pay their debt back, the Gov't actually makes money on the deal from interest, even with the 10% set aside for the collections agency/lender. Which brings us to the fact that...
http://www.credit.com/blog/2011/01/g...loan-defaults/
5. Not only do the lenders get paid once when the govt pays for a student default, they also get paid for COLLECTING the debt. What debt? Unlike with most everything else, unless you are PHYSICALLY UNABLE to work, you cannot file for bankruptcy and liquidate your debt. After the students default, the debt becomes the government's to collect and by and large they outsource their collection services to... The Original Lenders, thus the lenders get paid TWICE. That's where the 10% comes in.
http://www.foxbusiness.com/personal-...ng-bankruptcy/
My proposal is this:
Ron Paul, author a bill that would allow students to liquidate their debt and file for bankruptcy in the same manner a business or individual would. This would lead to fewer "easy" loans being passed out like candy, would encourage kids to go to more affordable schools, and would force schools to compete and lower tuition.
But as much as I want that to happen, so many kids my age and younger are under the delusion that the DoE is the only reason they were given an education in the first place, and that without it, they wouldn't have had the privilege of going to college. Here are some facts.
1. The current DoE was only just created in 1979 under Carter, and initiated into law under Reagan (who had vowed to abolish it). However, the Federal Govt has had its nose in education since the Civil War. http://www2.ed.gov/about/overview/fed/role.html
2. Since its current inception, College tuitions have risen 400% (While the dollar has lost 97% of its value since 1980)
http://nces.ed.gov/fastfacts/display.asp?id=76
http://inflationdata.com/inflation/i..._currentPage=2
3. SAT scores have also fallen since the 1970s though there are those who argue this is because more kids are taking them. As if taking the test was its own virtue.
http://www.theatlantic.com/national/...nt-gap/245176/
4. Those lenders who provide loans, in many cases, would RATHER the student default than pay the loan back over 20 years because when a student defaults, the Government (if the loan is like most student loans, Federally Guaranteed) is the one footed with the bill. And the Govt has a AAA... I mean AA+ credit rating which is still better than most college graduates.
And this doesn't just screw over the Govt, either. When the defaulting students pay their debt back, the Gov't actually makes money on the deal from interest, even with the 10% set aside for the collections agency/lender. Which brings us to the fact that...
http://www.credit.com/blog/2011/01/g...loan-defaults/
5. Not only do the lenders get paid once when the govt pays for a student default, they also get paid for COLLECTING the debt. What debt? Unlike with most everything else, unless you are PHYSICALLY UNABLE to work, you cannot file for bankruptcy and liquidate your debt. After the students default, the debt becomes the government's to collect and by and large they outsource their collection services to... The Original Lenders, thus the lenders get paid TWICE. That's where the 10% comes in.
http://www.foxbusiness.com/personal-...ng-bankruptcy/
My proposal is this:
Ron Paul, author a bill that would allow students to liquidate their debt and file for bankruptcy in the same manner a business or individual would. This would lead to fewer "easy" loans being passed out like candy, would encourage kids to go to more affordable schools, and would force schools to compete and lower tuition.