Why is the nationalization of student loans in the health bill???

[TheHumanAlphabet]

If you are not aware, the dems put in that all student loan will only be issued through the state owned Bank of North Dakota and only guarenteed by the US Gubment. All private student loans will be ended.

So now another group of people will be beholding to the gubment...Tentacles getting more and more spread out...

[Stitch Face]

"Tentacles! N-T."

[TheHumanAlphabet]

...

[OklahomaTuba]

Because this is nothing more than a power grab.

Besides, if your going to effectively seize control of 1/6 of this country's economy, why the hell not?

But in a related bit of good news, Barky is quickly becoming more unpopular than Duhbya was when he left office. (http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll)

Of course, it took Bush 8 years to get there, not 1.

[JohnnyMack]

Over/under on number of times Tuba has used the words "1/6 of this country's economy" in his posts? I'll set it at 26.

[delhalew]

You would think no one is employed by Sallie Mae or insurance companies for that matter.
If you ever wondered why the moderates of the democratic party are becoming extinct, these things are the reason. The engine inside the D party wants nothing left private.
What's sad is you have to watch republicans, because they will do the same on a smaller scale.
Notice few republican objection to the health care bill have been centered around liberty. I'm talking about our reps, not talking heads. They don't believe the American people have the will to take that stance.
I pray they are wrong.

[delhalew]

Over/under on number of times Tuba has used the words "1/6 of this country's economy" in his posts? I'll set it at 26.

By the time they are done, he may have to switch to 1/5 or 1/4. Is that funny to you?

[TheHumanAlphabet]

Over/under on number of times Tuba has used the words "1/6 of this country's economy" in his posts? I'll set it at 26.

You more worried about Tuba than the government taking over another sector of this economy?

[JohnnyMack]

By the time they are done, he may have to switch to 1/5 or 1/4. Is that funny to you?

Here's a nickel, go buy a sense of humor.

[Bourbon St Sooner]

You more worried about Tuba than the government taking over another sector of this economy?

How can the government "take over" a government program?

[delhalew]

Here's a nickel, go buy a sense of humor.
The stores are all out. I'm tired of laughing myself down the road to serfdom. I've got kids. The **** aint funny anymore.

[TheHumanAlphabet]

How can the government "take over" a government program?

It wasn't, it was managed and delivered by private interests. All my student loans, though guaranteed by the gubment (in case I defaulted) were managed and serviced by the Aid Association for Lutherans - a private firm.

[NormanPride]

The stores are all out. I'm tired of laughing myself down the road to serfdom. I've got kids. The **** aint funny anymore.

You can still laugh about something and vote against it. Lighten up, Francis. Getting mad about it just makes you look like a troll.

[soonerscuba]

DEY TUK OUR (INSERT LITERALLY ANYTHING)!!!!!!!!!!!!

[TopDawg]

If you are not aware, the dems put in that all student loan will only be issued through the state owned Bank of North Dakota and only guarenteed by the US Gubment. All private student loans will be ended.

Can you provide a link?

The way I understand it, the federal government will only take over student loans that are federally guaranteed. You could still get a private student loan, it just wouldn't be guaranteed by the government. Right?

[TheHumanAlphabet]

Can you provide a link?

The way I understand it, the federal government will only take over student loans that are federally guaranteed. You could still get a private student loan, it just wouldn't be guaranteed by the government. Right?

Nope, they will be the sole purveyors of student loans through the Bank of North Dakota.

http://www.chron.com/disp/story.mpl/metropolitan/6920767.html

I think Bloomberg also has a story...

EDIT:
Here's another link... (http://www.politicsdaily.com/2010/03/19/student-loan-overhaul-heading-toward-vote-with-health-care-bill/)

2300 jobs lost in loan processing (http://blog.newsweek.com/blogs/thegaggle/archive/2010/03/12/student-loans-make-health-care-bill-even-more-complicated.aspx)

Also add that your taxes are going up immediately. Your medicare tax will go up and you will now have to pay a medicare tax on capital gains from all your investments.

Thanks Obammy, Pelosi and Reid! May you smoke a turd in hell!

[TopDawg]

From your politicsdaily link:


Legislation that would largely remove private banks from the loan process

That leads me to assume it wouldn't completely remove them, right? They would still be able to offer student loans, they just wouldn't have the government guaranteeing the loans.

If people are fundamentally opposed to being "beholdin to the gubment" they could still go get their own private student loans. They might not be able to do it through their university's financial aid office, but they could still do it.

[Bourbon St Sooner]

Your correct TopDawg. The gov't guaranteed loans are going through the TurboTax Timmy National Bank only. Other banks can offer student loans but they wouldn't be gov't guaranteed, meaning you're not going to get the favorable interest rate you would get and TTTNB.

Of course we all know that all loans through TTTNB are gov't guaranteed anyways.

[TheHumanAlphabet]

I don't know who would use a nonguaranteed student loan. If forced to use those, I would not have been able to afford school.

[Bourbon St Sooner]

Exactly. Instead of going to a private lender you'll go straight to the gov't for the loan. The only thing that made those loans possible was the gov't guarantee. The banks loved them because they got fees and interest for essentially no risk.

Whether this will save the gov't any money seems doubtful, since we all know how efficient the gov't is at administering programs.

[Leroy Lizard]

That leads me to assume it wouldn't completely remove them, right?

If the U.S. government began offering new cars for $500, you could still go and buy one from a private company. It would just cost you 100 times more.

So technically you are right. But realistically, once the government gets in the business and offers something private companies cannot, then they have effectively taken over the industry. This is why we we supposed to have a Constitution limit the powers of the federal government. Obviously they found a way around that.

[OhU1]

Private student loans will exist as they always have. The change is cutting the private sector out of the loop in the issuance of governement backed loans.

Private student loans are issued primarily to meet needs after all other cheaper gov. back loans have been used. These loans typically are used by graduate and professional students who have a co-signer with a good credit rating. See companies such as First Marble Head (FMD) if you want to know more about this sector.

[delhalew]

You can still laugh about something and vote against it. Lighten up, Francis. Getting mad about it just makes you look like a troll.
Troll? NP, there is a difference between having no humor and being tired of people dismissing EVERYTHING as a big joke.

[TMcGee86]

All your loan are belong to us.

[TopDawg]

Well, given the situation we are in, I think that this is an improvement.

The way I understand it (and I'm no financial aid expert), as it is, private lenders decide who they give loans to and if they make a bad choice, the government steps in to back that loan. Sounds kinda like a bailout.

As it would be under this new bill (as I understand it), we're just cutting out the middle man. The government still assumes the risk, but now they also get the income from overseeing the program.

Based on what you all say, if the government had never stepped in, a whole lot of you wouldn't have been able to afford student loans because the private lenders would've had to charge a higher interest rate to cover potential losses. So I like the fact that with the government's backing, student loans are made more affordable and I don't really see how it's so much worse for them to do it themselves rather than for a private lender to do it for them.

[TheHumanAlphabet]

Well, given the situation we are in, I think that this is an improvement.

The way I understand it (and I'm no financial aid expert), as it is, private lenders decide who they give loans to and if they make a bad choice, the government steps in to back that loan. Sounds kinda like a bailout.

As it would be under this new bill (as I understand it), we're just cutting out the middle man. The government still assumes the risk, but now they also get the income from overseeing the program.

Based on what you all say, if the government had never stepped in, a whole lot of you wouldn't have been able to afford student loans because the private lenders would've had to charge a higher interest rate to cover potential losses. So I like the fact that with the government's backing, student loans are made more affordable and I don't really see how it's so much worse for them to do it themselves rather than for a private lender to do it for them.

You fail to understand. Now that they control the subsidized loans - most loans except to parents. They can dictate which school you go to and attend. They can manage the loan policy for "social justice" and equality. You will not likely be getting a loan to attend the college of your choice, it will be the government's choice. That is what they can do with this legislation.

[TopDawg]

Well, whether or not they CAN do it and whether or not they WILL do it are two different things.

I don't think they will even if they can. I'm certainly against them actually doing what you say, but I don't really care if they can (as long as they don't).

So on that point, I'm with you although I don't share your same outlook on the likelihood of it happening. But on the rest of the issue, I don't really see the problem.

[SoonerKnight]

You fail to understand. Now that they control the subsidized loans - most loans except to parents. They can dictate which school you go to and attend. They can manage the loan policy for "social justice" and equality. You will not likely be getting a loan to attend the college of your choice, it will be the government's choice. That is what they can do with this legislation.

The only time the Gov't actually does something like that is when we have a national need. For example get your teaching degree teach in a low income school for 4-5 years get loan paid off. Good deal? Well if you are gonna get your teaching degree anyway why not! Paranoia there is medication for that!

[JohnnyMack]

The stores are all out. I'm tired of laughing myself down the road to serfdom. I've got kids. The **** aint funny anymore.

I got me some of them there kids too.

Still doesn't mean I have to think Tuba is anything less a party line hack.

[Kimberlyz4OU]

Why is it in the HEALTH bill.......???

[Leroy Lizard]

Because they think they can pass the health bill.


They can dictate which school you go to and attend.

Why do have this funny feeling that the voluntary demographic surveys are not going to be voluntary any longer.