Should approval standards for student loans become more strict (factoring in things like high school grades, chosen college major, etc.) to reduce odds of a "bubble" of future defaults?
Lol Democrats would really crack me up except that they don't realize they have to pay the bills too.
@thinker being underprivileged doesn't mean you can't achieve a good gpa I know a college that only requires a gpa of 1.5 now that's just ridiculous
The question is written with such bias. People who have a good GPA and determined career goal probably did well enough to get a scholarship. Also people who receive financial aid and student loans are underprivileged. They came from underfunded schools and are still working on their education.
taking high school grades for account is stupid. in high school i slacked off and had a 2.34 gpa. in college now i have a gpa of 3.64 and im a junior. when ur paying the money out of ur own pocket, ud be surprised how much more u focus. but i agree that the interest rates are insane. mine r at 10%
Students take out loans as needed. Unsecured debt comes with higher interest. Ok, but within reason. The real question is why has the cost of tuition gone up 250% in the last 20 years? I'll take that kind of raise any day!
"bail out" for the ppl!! Student loan relief!!!!'
i think the amounts given should be monitored closely and it should be tied to current grades. i.e. If you make D's or F's, start pulling back on the amounts. If you cant maintain a 2.0, then stop loaning more money altogether.
I have some friends with rates at 10%. I think a ceiling of 3% interest on student loans should be set. Remember, you can't claim bankruptcy on student loan debt.
I have a couple loans at 6%, but that is still to high for an education.
@punchy -- I'm not sure what "ridiculous" interest rates you are referring to. I am playing less than 4% on my loans. I think it's ridiculous that the government just gives student loans away with no regard to who the person is.
Banks don't choose my future when I don't qualify for a home loan due to poor credit history. Its like those Public Service commercials telling kids they own their choices. College isn't an entitlement.
It blows me away how willing people in this country are to give up their rights and add restrictions and policies to every aspect of life.
the problem is the ridiculous interest rates set on these loans. Student loans should have the absolute lowest interest, and to reverse the ridiculous increase in cost for a college education.
This is a stupid idea. We are in America and you will tell people they can't have money for college in the form of loans due to their high school grades, what a joke.
engineering majors are in short supply and are most likely to pay back the taxpayers for their. why shouldn't we give them preference for a loan over a fine arts major?
It is a slipper slope when we let the government choose our future.
The gov should only provide a total loan able amount that is equal to the average annual salary the degree is shown to provide, any additional would be the students to come up with.
The changes to the college loan system should be based on the type of school and program selected, and the student's history with school loans, if any. It shouldn't be based on high school grades.
Too many people are wasting precious resources on college when trade schools should have been their destination.
Who wants to fuck.
Revamp it. If we the tax payer underwrites it let the IRS be able to collect loan debt. Assuming they defaulted.
And we are expected to underwrite these insecure loans without setting significant requirements? Because you were a silly student in high school?
The loan system has turned into a welfare system. A majority of the colleges and universities have become a joke. Having any stricter standards will actually make our education system be able to compete with other countries again.
ValerieJO - people need a 100K education to get a decent job?
What's the point, they made colleges so expensive that loans can't even help most now, keep it the same, why make education so Unattainable
i dont see why not. make it so people who get the loans deserve it.
For crying out loud, Valerie- tightening up loan requirements hardly equates to taking every chance away. they can get a job and pay for their education like other people do.
You guys complain about people not working hard and earning a living on their own and then you want to take a every chance they have at being successful away from them? And then you wonder why they can't get a decent job?
There are many things that could have caused them to get bad grades, but that doesn't mean they won't do better in school or change their attitude later on in life. Everyone should be given the chance to get a college education if they want one.
High school students are kids. Kids make mistakes and don't always apply themselves, or they don't always realize how important education is until layer in in life, or something tragic happened to them and they couldn't concentrate on school, or had an undiagnosed learning disability..
College should have higher restrictions (even on star athletes). However junior colleges should have even lower standards.
s own reward! we can't afford to be ignorant as a society!!!
OMG!! I've already paid back one set of loans & am working on the 2nd...who cares what is studied??? As long as the loans are paid back! knowledge is it'
It would have made me try harder in high school.
what's easy about these loans? I'm going to be paying back my student loans til the day I die
THE GREAT DEPRESSION, AND THE MESS WE ARE IN RIGHT NOW BOTH STARTED BECAUSE OF EASY LOANS! People who said no should rethink their answer and maybe take a history course...
@anarchy how should an undeclared major be gauged? What happens if the student changes major? Transfers to a more/less expensive school? I knew a student who had a 1.8 GPA in HS, got into an open enrollment college (nowhere else to go) and became class valedictorian
@jopat yeah, politicians are sneaky about tagging things onto bills they really want. "you vote against my jobs bill, you hate education!" That crap irks me to no end.
all it takes is for an institution to decide they are no longer able to finance a major, and poof! Anybody without classes to teach is laid off, regardless of tenure status
@mcluke yes they have no money, but they do have ideas. If they can sell their ideas to a rich person/agent/scout, they have a chance. Tenure isn't completely irrevocable, btw; each institution has policies on how it can be revoked; one of which is financial
this is America...equal OPPORTUNITY, not equal outcomes. you're advocating equal OUTCOMES regardless of performance, and THAT is communism.
go to a CC for a couple years first, get good grades, and prove you deserve the opportunity to attend a prestigious 4 yr school...til then, why should anybody just hand them cash and hope for the best?
And also that statistically, grades are a reliable indicator of who will pay off debt
Valerie: what the bloody hell are you ranting about? somebody that got bad grades fit into two categories....lack of work ethic, and lack of intelligence....sometime both. how exactly do either of those "qualities" translate into "long term, successful job holder" that can pay back loans?
ray gray: exactly why doesn't hat make sense? that's EXACTLY how every other loan institution I the world works....liability is gauged by past performance.
No, lowering tuition rates will help people avoid default.
So, a student's likelihood of defaulting on their loan will be determind...how? By looking at their high school GPA and their college major? I'm sorry but this doesn't make any sense.
that is the result of mindless liberal compassion
and valeriejo- do you realize that attitudes like yours are what lead to so many unqualified ppl getting home loans they couldnt afford resulting in massive loan defaults and displaced families that would have been better off if they had stayed in their apt