Unintended Consequences of Government Student Loans

[SilentBull]

I just wrote this article to explain the consequences of the government providing student loans. Feel free to pass this along to anyone that you think could be persuaded. This article is a good example of how we should be persuading liberals. We need to explain to them that by supporting federal student loans they are really helping the schools, and not the students.

http://www.truthinexile.com/2012/10/...student-loans/

[Czolgosz]

Well written and articulated.

Bumpage.

[angelatc]

I've been reading up on Fabian Socialism. Not all consequences are unintended. Driving the price up so high that the government has to step in and take control is certainly something that the government could support.

[tangent4ronpaul]

Well written!

you should both bold this section and take the last part and put as a subtitle to the title. That's the money paragraph!

"If you want any good to be as cheap as it can be, you need to allow for competition. Without government loans, the schools would be forced to lower their prices lest they lose customers. Today, they are being guaranteed customers regardless of how expensive they make their service."

We were just discussing putting together something like you just wrote over here:

http://www.ronpaulforums.com/showthr...f-cats!/page10

see post 94

We want to saturate media, especially local media and as part of that I found a list of over 4,100 college newspapers n/ we were thinkin' that an article on what a scam student loans are and the really abysmal employment numbers are for college students. That to get peoples attention, and segue into how only writting in Ron Paul or voting for Gary Johnson will fix this situation.

In the post I pointed to, there are several links on the issue you might want to read. You might want to add something on the textbook scam and it's either that tuition inflation is twice what normal inflation is and medical is 4 times OR medical is twice and tuition is 4 times.

Anyway, we were looking for someone to write this, and <cough> someone seems to have... How would you like to be published in thousands of schools local paper?

-t

[SilentBull]

Well written!

you should both bold this section and take the last part and put as a subtitle to the title. That's the money paragraph!

"If you want any good to be as cheap as it can be, you need to allow for competition. Without government loans, the schools would be forced to lower their prices lest they lose customers. Today, they are being guaranteed customers regardless of how expensive they make their service."

We were just discussing putting together something like you just wrote over here:

http://www.ronpaulforums.com/showthr...f-cats!/page10

see post 94

We want to saturate media, especially local media and as part of that I found a list of over 4,100 college newspapers n/ we were thinkin' that an article on what a scam student loans are and the really abysmal employment numbers are for college students. That to get peoples attention, and segue into how only writting in Ron Paul or voting for Gary Johnson will fix this situation.

In the post I pointed to, there are several links on the issue you might want to read. You might want to add something on the textbook scam and it's either that tuition inflation is twice what normal inflation is and medical is 4 times OR medical is twice and tuition is 4 times.

Anyway, we were looking for someone to write this, and <cough> someone seems to have... How would you like to be published in thousands of schools local paper?

-t

That sounds like a good idea. I'll take a look at some of the links in that post, later. I just added a graph showing tuition costs vs overall inflation, and I added that tuition rates rise at about twice the rate of inflation.

[Acala]

This is a perfect example of how new money drives up prices (including salaries) at the points where it enters the market, in this case through government grants and bank credit, while prices (including salaries) elsewhere in the market stagnate. The same goes for health care and housing. The people working near the money spigot benefit from inflation while those far away from it suffer.

[oyarde]

In my Home State , avg student loan debt runs around 28K , last I looked, the County that one of the main Universities is in also is poorest for the state using per capita income.

[Zippyjuan]

In taking over the student loan program, the government claimed that it would eliminate the additional costs to borrowers of middle men issuing the loans which would mean lower costs for borrowers.

[BlackTerrel]

Great article. Thanks for posting.

The cost of education is so high that the majority of college (with a few exceptions) now nets you a negative return on investment.