Ron Paul wants to eliminate federal student loans

A lot of the credit worries don't apply to private student loans because they NEVER go away. If you go into bankruptcy virtually everything else goes away, but not the student loans. Those bad boys are with you for life.

Obama ended federal subsidies to private banks for student loans. He didn't end private student loans.

AFAIK, anyway.

Yep, that's pretty much it.

That's exactly my point. Some people argue that if you don't make it so easy to borrow in order to go to school, then the schools will respond by lowering their tuition. And yes, they would to a degree, But my concern is, would it be lowered enough that a person could feel confident that getting a further education was accessible to them?

In everything that I have seen, "standard equivalent experience" is being replaced by "minimum equivalent experience" in conjunction with certifications and/or degrees.

Even the most labor intensive jobs while may not require degrees, require some sort of certifications or required training these days. I don't think it's really disappearing, it's just that the standards are changing and therefore, the requirements are changing.

And the reason the government gave those subsidies to private banks was because private banks wouldn't give students loans otherwise. Ron Paul wants to *eliminate* the department of education. What reason would banks have to lend to students with no subsidies?

Tuition already is, by and large, low enough at certain schools to be accessible to anyone who really wants to go.

This won't help eliminate easy access to a college education for almost anyone. It will help eliminate easy access to expensive college educations for almost anyone.

Thanks for explaining this to me, sometimes the differences with Canada and America can make some threads confusing for me.

While university might not be a God given right, the old cliche saying of kids being the future is true. There has to be a way to allow anyone from rich to poor to be able to go to university, get a good job when they are done and help become productive members of society.

Having university so that only the rich can afford to go, its a but silly. Its only going to allow those already struggling to keep struggling for life and probably become burdens on the economy instead of contributing to it.

Saying that, if one can go to a bank and still get a loan and the approval for said loan is easier, will it really make a difference to do away with federal student loans. It would free up federal money and that is really needed but I am not sure to the degree it would hurt students if they can borrow from a bank. I guess it comes down to interest and other factors that are benefits that federal loan has compared to bank loan.

You pretty much need a degree to get any good paying job, at least here you do. So we need to have things in place so anyone who qualifies for university can go.

The way I see it, its borrowing money now but then the student gives it back not just paying the loan back but has a better job and contributes more to society and the economy.

I don't know, maybe to secure a steady stream of business resulting from long term repayments on a large value loan with a relatively high interest rate that can never be discharged in bankruptcy?

What do you think will happen when it's not in anyone's financial interest to give out expensive, unnecessary education loans to pay for massively inflated, unnecessary tuition rates?

Federal loans max out at $9,500/year for freshman and $12,500 for seniors. No one is paying for $200,000 tuitions through federal loans. Removing federal loans will reduce tuition a bit, but arguably not by much. What it does do though is make it so that the poorest people have a harder time getting a degree.

Private loans are based on the school. I know the school I went to private loans were limited to just over $10,000 a semester.

No one is paying all of a $200,000 tuition.

But that's still over $50,000 worth of tuition per student basically guaranteed to the university. That's a pretty large chunk.

That is just not true. No one is saying the only the rich can go to school. Just look up how many scholarships, programs, and resources are available to the poor and tell me that we're not trying to give the poor just as much if not more a more of an advantage when it comes to being able to go to school. If money is the only factor in determining why a poor kid doesn't go to college and further, why they don't do well, shoot me now. Everyone knows that's not true.

That was before Obama withdrew student loan subsidies from the banks. No one is getting $10,000 per semester now. So one would think that tuition should have already started dropping. Has it?