Ted and Mark were on separate segments with Mike Flannery of Fox32 to discuss the bad idea that is President Biden’s student loan relief. Ted remarked it’s unfair to those who sacrificed and already paid their debts or have never gone to college and Mark said that even the Dept. of Education and Speaker Pelosi know the action isn’t legal.
Number of half-empty Chicago public schools doubles, yet lawmakers want to extend school closing moratorium – Wirepoints
April 19, 2024
18 Comments
A set of state lawmakers want to extend CPS’ current school closing moratorium to February 1, 2027 – the same year CPS is set to transition to a fully-elected school board. That means schools like Manley High School, with capacity for more than 1,000 students but enrollment of just 78, can’t be closed for anther three years. The school spends $45,000 per student, but just 2.4% of students read at grade level.
Hopefully, all media will get the message, in Illinois, too.
Ted joined Tom Miller of WJPF to talk about Illinois’ highest-in-the-nation property taxes, why lawmakers don’t want to touch the tax’s cost drivers, just how much Illinoisans’ tax burden has grown over the decades, why Gov. Pritzker failed to meet his promise to reform property taxes, and more.
No one cares about Fair.
The Student Loan Forgiveness is a bad idea because loan forgiveness means the education wasn’t worth the cost, and Colleges are incentivized to increase tuition.
Education is moving to designations. This forgiveness will speed the process towards designations, and reduce the dependence of traditional education.
Big Universities will stay, but expect 50% of colleges closing or should close within eight years.
Here’s an interesting proposal.
https://rvivr.com/2022/08/how-to-restructure-college-costs-and-kill-wokeness-with-one-fell-swoop/
This will really blow up in Biden’s face when the courts rule he doesn’t have the authority! Everyone planning on spending $10k they don’t have will riot!
Will it? Even if the courts attempt to claw back the 10k then democrats will have all their “victims” they need. They can then blame those mean old republicans for adding debt to all those people that had previously “paid off” their loan. People who suddenly owe 10k won’t care about what the constitution says. They will be mad and it will be the republicans fault.
The court overturning this at some later date is a feature not a bug.
This is correct. It is a feature of the most cynical political administration in the history of the united states.
https://mobile.twitter.com/BarbarianCap/status/1563591684612825089?cxt=HHwWgoDR8cqW_7IrAAAA
$1.75 trillion in student loans… higher than credit cards and auto loans (mortgages are bigger) Imagine looking at the problem, and doing ZERO to solve it, and opting for vote buying instead
Why do many students even need loans when total endowments are over $675B. https://www.collegeraptor.com/college-rankings/details/Endowment. If students had easier access to that money they would not be paying interest for decades and never catch up. Loans if needed would be considerably less and payback much easier. Do you know how much of total outstanding debt of $1.75T is interest and how much is principal? I can’t seem to find the data.
Those endowments are massive. But the default rates at the prestigious universities with large endowments is minuscule. The greatest student loan defaults and those that graduate with the largest debt loads, are for profit schools, community colleges, trade schools and dumpy four year colleges. These are the colleges that abuse the student loan system, put students into debt that they can never afford to repay, and walk away with millions of federal student loan money every year with no accountability. And, over 50% of all student loans are held by graduate students – MBA’s, doctors, lawyers, and those worthless degrees… Read more »
I noticed the priority problem with paying the student loan. One of the four C’s of credit used to be “character”, and some of the student loan debtors interviewed didn’t seem to have enough of it. Instead, they wanted their student loan repayment money in order to qualify for other loans. Some considered the loan earned, which I couldn’t clearly interpret. Either they thought the loan was earned by attending to their studies while in school, or they didn’t acknowledge the loan separately from the portion of their earned income needed to make their student loan payment. Big priority problem. If the loan obligation wasn’t explained… Read more »
What if the government is discharging $20k in debt (For a pell grant recipient) who finished two years of Phoenix University or some other scam college. How would you feel about that?
Students should be responsible for paying their loans. Phoenix U. is an accredited school and, in your example, the student attended for two years. Not sure if it’s possible to get a federal student loan, much less $20,000, for a non-accredited school or program.
Scams of all types are common because they aren’t being reported and investigated as crimes. So, most fraudsters are never caught.
I have no idea who is accrediting these scam colleges. Phoenix U is a worthless college
Comments, 1.) If the reps where smart at fed and state level they would come up w a counter proposal to cut the crazy cost of college for all. Like mitch daniels is supposedly doing @ perdue. 2.) Dems are praying reps fight student loan forgiveness in courts before nov
Colleges should be required to offer VERIFIABLE stats on the value of each degree they offer AND the job market for the degree. Especially liberal arts degrees.
At least students would then have a fair opportunity to consider possible payback before going into debt.
High school guidance counselors should demand this kind of data before recommending college.
I think the best policy is for the federal government to get out of the student loan business. When real assets are needed to get a loan for college everyone involved will think long and hard about what each individual’s college education is worth. The marketplace is the most efficient way to determine what each major is worth.
So only people with real assets will be able to get student loans? That’s not the least bit politically feasible. The money owed for federally backed student loans should be paid back and typically isn’t that much compared to the horror stories many sites print. I think the most money a person can owe for federally backed student loans for undergrad is around 27k. This can and should be paid back. Not even sure how that’s a problem. I took out a second job on weekends to pay off my debt as quickly as possible. It wasn’t fun but can… Read more »
The private sector can determine how much to loan a student depending on their major. Getting the government out of the loan business doesn’t mean students won’t get loans, it just means your career path will determine how much the student will be allowed to borrow. And if your not sure what your career path is, go to community college and work at the same time. In most of these cases the money you earn, even working part time, will cover the cost of community college. The major cause of sky rocketing costs of college is the ease that students… Read more »
Yes, and many colleges are really just scams designed to milk the federal student loan system with no accountability. Look at this list:
https://www.finder.com/schools-with-highest-student-loan-default-rates
Ross Medical Education Center — Brighton, MI has a student loan default rate of 23%.
Tuition is $21,966, plus $6,287 administrative fees, plus $1,026 for health insurance.
There are lots of schools like this.
The real solution is allowing bankruptcy for private student loans. You’re almost there. The real solution is bankruptcy for ALL student loans – including parent co-borrowers for Parent Plus loans. And the kicker: the college is on the hook for some of the debt – even years later – if the former student goes bankrupt. The current thinking in wonky circles is that if you’re earning so little money to qualify for bankruptcy 7 years after your most recent student loan, you should be able to discharge them. For most people, this won’t be an issue. But for those lower… Read more »
And if bankruptcy is allowed, private lenders will be much more cautious in lending for college, especially if you don’t know what you’re going to do with your college education. But for me, the government needs to be totally out of the college loan market, and the marketplace, rather quickly, will figure out how to loan to college borrowers with the least risk possible.
The Taxpayers were put on Earth to be Screwed by Government.
“Forgiving” student loans is synonymous with “Inflation Reduction Act.” The ruling class treats us as dopes because they can; we are left to provide good arguments why something is wrong. They laugh at us. Our arguments are meaningless.
I’m really enjoying the conversations among my wife’s card carrying trade-union side of the family and their friends. You know, the folks who left high school for union apprenticeships and then scrimped-n-saved to buy work trucks and tools and worked all of the gritty grunt job-sites for years before they advanced themselves and earned enough to marry, buy homes-n-bass boats (with their own money) and raise their kids. Bit of a kerfuffle going on there as those who have kids with student loans & no or not much of a job try to figure out what to say to those… Read more »
“When the people find that they can vote themselves money, that will herald the end of the Republic. – Benjamin Franklin
Old Joe, Even I’m not old enough to have been around when Franklin originally said that, but I’ve heard it often enough. It’s always been one of my husband’s favorites. It’s sooo true.
Everything the biden administration and democrats do is a bad idea. How much do the voters who vote for these slobs have to get kicked in the posterior to understand that the democrats are the problem, not the solution?
It’s been said many times, quite a few high school students are not ready for college, but go any way because they have been duped into a minded set, that is the only way they can make any thing out of their life which is not true. I’m sure there are statistics of people that rack up plenty of college debt and either don’t finish or come out with a worthless degree, that can’t pay the bills or pay off college loans. It stems from a lack of K-12 education
Especially if they get a Gender Studies Degree. College is a waste of money these days. Young adults would be better getting certificates for specific skills or trade skills. They are getting Totally brainwashed in these Indoctrination Centers.
Those downtown offices are (were?) filled with selective and highly selective college graduates earning six figures or more. Almost always, the highest paying jobs are filled with graduates from good colleges. I have one friend who works in one of those office towers making six figures. He doesn’t have a college degree but he says he is the only person in his office who didn’t go to college. He only got the job because he has experience. But every person on his team has a college grad and every person he interviews has a college degree. And not just any… Read more »
All student loans should be interest-free for the first five years.
Those scraping by who can’t make the payments don’t fall further behind but have enough time to get experience so they can reach a salary where they can begin to pay back. Those that buckle-down and pay back their loans immediately can knock of a sizable chunk of debt interest-free and save tens of thousands of dollars in future interest payments. Win-win.
Tack on whatever service-based incentives you want on top of that, but everyone pays their fair share.
The colleges should be the only institutions that provide the loans. Most have vast endowments. This way, they have skin in the game and are accountable if a borrower defaults.
Most colleges don’t have vast endowments. Many colleges are actually very broke while the elite institutions have very large endowments. As Tucker has said, they are hedge funds with universities attached to them.
But the smaller non-elite colleges are facing serious existential issues. They are teaching fewer students because demographic changes (poorer, less educated students) are only partially replacing the disappearing white male (https://spectator.org/why-should-a-straight-white-male-go-to-college/). Many are located in less populated areas in the midwest and northeast and are drawing from a declining population of regional high school grads.
There are a lot of professional students pursuing doctorates so they can teach their otherwise unmarketable major at NEIU; spending the entirety of their 30s hopping between middling institutions trying to obtain professorship. That’s not hardship, that’s a lifestyle choice.
There are those that argue we should defund the police because policing doesn’t address the root cause of crime. These are the same people who argue we should cancel student debt, which does not address the root cause of the debt.
Academia is one of the most reliable Democrat Party institutions. They’re almost exclusively, entirely Democrats even more than tech companies, which at least have a dissenting voice or two. The goal of student loan debt jubilee isn’t to address the root cause of college tuition costs, it’s to give a freebie away to their voters.
I’m puzzled. When listening to interviews of former students who have incurred large amounts of debt in their quest for higher education, inevitably I hear some poor soul moan that ‘I didn’t know that it was going to be this much ! “ Or “I didn’t realize how long it would be before I could pay it off.” Or I didn’t know that I wouldn’t be able to 1) marry, 2) have children, 3) buy a car, 4) own a home, until I got the student loan paid. While I know that many high school grads are not math proficient, I would… Read more »
True story.
Years ago on a trading floor in Chicago, I had to teach the concept of fractions to a person who was a Finance major at a “prestigious” university!
I literally had to draw a pie with different sized slices on a piece of paper on a desk in trading floor booth. Then I told the intern that she needed to be able to convert these fractions into their decimal equivalents to do the proper trade valuations. Couldn’t make that up if I tried.
Agree. This has been going on for decades. The good University and College professors have seen the ill prepared students that arrive at their schools that have been failed by the inept k-12 Indoctrination system. Years ago my husband had to show some sales people how to write a business letter properly and these employees had college degrees. I have been saying for a long time, the students can’t count back change but they know about social justice and other perversions.
You’re spot on Silverfox. It took me 9 years of monthly payments to repay my student loan. I also had a summer job and a co-op job at General Motors in Pontiac, Michigan while I was in college to help pay for tuition.
I feel like a fool now for not knowing Joe Biden was gonna pick up my tab anyway.
I could have spent more of my best years chasing skirts and drinking beer.
Gee, I wonder if I can be reimbursed for the student loan I paid off in 1993.
53
The “I didn’t know” is a bs excuse. In order to get these student loans, the student has to read and complete a ton of material that explains repayment, interest, budgeting for all other expenses, etc
Therefore, “I didn’t know” is really them admitting they are just stupid, lazy, and/or unable to take personal responsibility
He’s been talking about doing this for the last 2 years. I told several friends that were paying cash for their kids college to go ahead and take out these loans in their kids names even if they didn’t need to. Worse case scenario they could invest the cash while paying low interest. Now when their kids graduate they can wipe out 10k in loans. Not only that, they haven’t needed to make payments on their loans during covid. These are families that make 400-500k per year. They don’t qualify but their kids sure will when they first graduate. Thanks… Read more »
This forgiveness scheme will likely be found unconstitutional before the 1/1/2023 payment resumption. This way Biden gets the midterm boost for a ‘win’ but loses it all after the mid-terms when the forgiveness scheme is reversed or paused by the courts. Then the Biden regime will blame Trump or Trump appointed judges, or just Republicans generally, for the debacle that comes out of this. This isn’t the first time they’ve knowingly taken unconstitutional policies knowing they will be struck down (vaccine mandates, CDC eviction mortatorium, etc). EVERYTHING the Biden regime does is a political calculation. They do nothing for the… Read more »
I think forgiving debt is a right solely reserved to Congress, But count on the Biden administration to fight litigation on the basis of standing to cause all sorts of delay, banking on the fact that it will be politically impossible to undo the arrangement. I do think reform is needed. Loans on the same terms are being given out now and we will back at 1.6 trillion with more problems given the recession and inflation. These loans essentially cannot be discharged. Make them dischargeable with lenders having skin in the game and we might see rationality in the system… Read more »
The universities are the ones that need to have skin in the game. When someone pays for a degree that has no monetary value after graduation, the university should be on the hook. Also, no student loans should be available to anyone at a university that has a large endowment. Let the university use its endowment to fund loans and benefit its own students. Then, the portion of the endowment not used to fund student loans should be heavily taxed. That tax money should be used to fund trade schools, who have no endowments. The tax will also finally get… Read more »
Ataraxis – I think you are right that the schools must have skin in the game but the academic industrial complex – a group that votes in one direction – are the best rent seekers on the planet and will find a way to minimize their skin in the game impact. Witness a few years back when the Dept of Ed – which has zero skill in managing a 1.6 trillion loan portfolio tried to tighten up Parent Plus lending standards. It lasted only weeks with the schools lobbying to keep the standards relaxed so the students…errr loan conduits kept… Read more »
Sadly you are correct.
The issues with student loans gets lost with the punditry. The schools with the largest endowments are the elite schools. Wealthy grads donate to the elite schools because the degree they earned was valuable. That’s why elite schools have large endowments. Their grads mostly earn more than $125k per year. As 22 year olds. in starting positions. These schools are not the problem. Their grads rarely default on student loans, and IIRC, they default at rates less than 1% of the time. The problem with student loans (for the most part) isn’t the Ivy League schools (other than the theater… Read more »
https://www.finder.com/schools-with-highest-student-loan-default-rates
15 schools with the highest number of defaults on federal student loans
(data from 2015)
University of Phoenix
Altierus Career College — Tampa, FL
Ashford University
Ivy Tech Community College of Indiana
American Public University System
Graduates of These Universities Had the Highest Debt Loads
This list will shock you. Massive debt loads upon graduation, I’ve never ever heard of most of these schools. There’s a handful on there like Pepperdine and Valpo and Catholic University but most are no name educational factories minting dumb liberal kids with worthless degrees.
Great post debtsor
Anyone who still believes we have a functioning republic is part of the problem.
JoeBama administration has ruled by fiat and decree since Inauguration Day. No one is stopping this tyranny- especially the other “2 equal branches of SCOTUS and Uniparty.
While I agree that this is unconstitutional, how exactly will this be determined unconstitutional before the end of the year? Are you expecting the Supreme Court to hold an emergency meeting? Who has standing? Somehow I think many people just received 10-20k from their uncle and they won’t be giving it back. The reality is that both the payment pause and the forgiveness are both unconstitutional. Both required the government to spend money without the consent of congress so I fail to see the difference. Since both R’s and D’s have supported the pause I guess we just look the… Read more »
But no money is changing hands. Unless the loan is closed, there is probably recourse to add that amount back to the amount owed. If anything, it offers loan holders a rebate on the interest paid on the $10-20K for a number of months because the interest is calculated on a lower principal balance.
“Unless the loan is closed”
33% of all borrowers owe less than 10k in student loans while 53% owe less than 20k. Are you stating that these borrowers would be in the clear while those that didn’t have their loan completely paid off could then have the debt added back to their loan? Somehow that seems unlikely to me.
How? Easy. A federal district court would issue an injunction before the 1/1/2023 date keeping the status quo – that borrowers owe the money. I’m sure they can find one conservative student loan borrower willing to put his name as a Plaintiff in a lawsuit to challenge Biden’s edict. The federal courts had a habit of issuing nationwide class action injunctions during the Trump years to stop his agenda. But it goes both ways and Trump appointed judges seem to enjoy issuing their own nationwide injunctions to stop Biden’s agenda. All it takes is one plaintiff of the tens of… Read more »
While I agree that it should be challenged I just don’t think it will happen with the speed you predict. We will see in the next 4 months. There are serious questions as to who has standing to challenge this. Just finding a student loan borrower may not be enough.
https://www.virginialawreview.org/articles/standing-and-student-loan-cancellation/
While I agree that it should be challenged I just don’t think it will happen with the speed you predict. We will see in the next 4 months. There are serious questions as to who has standing to challenge this. Just finding a student loan borrower may not be enough.
https://www.virginialawreview.org/articles/standing-and-student-loan-cancellation/
While I agree that it should be challenged I just don’t think it will happen with the speed you predict. We will see in the next 4 months. There are serious questions as to who has standing to challenge this. Just finding a student loan borrower may not be enough.
I tried to attach a link to the Virginia law review but usually when I post a link I get held up in “awaiting for approval” and it usually doesn’t gets approved.
Virginia Law Review April 15, 2022 Standing and Student Loan Cancellation by Jack V. Hoover volume 108.
PPF, you shouldn’t be having that problem with links. If they do get bumped into the approval file we have always okayed yours. Sorry if something is going wrong.
I browsed the article. There’s a reason why lawyers rarely cite law reviews in their briefs. An executive action on student loans that no one has the ability to challenge in court. Says the constitutional scholar …..er….3L that wrote this article:
University of Virginia School of Law, J.D. expected 2022. The author would like to thank Professor Richard Re for his guidance on this project, as well as Mustapha Yoosuf-Akinlaja and many other Virginia Law Review members who provided thoughtful feedback.
Like Biden always says, “Come on Man, that’s Malarkey!”
So you read the article and have nothing specific to refute. Got it. Your only response is that’s malarkey. Compelling. “The difficulty, I think, is I don’t know who has standing to sue,” said Neal McCluskey, a policy analyst at the CATO Institute. The CATO institute is a libertarian think tank. Are they too far to the left for you as well. How about FoxNews? https://www.foxnews.com/politics/state-ags-weigh-legal-challenge-against-bidens-500b-student-loan-handout Many people are questioning who would have standing to sue. That’s not malarkey but rather a real issue. I believe student loan borrowers are the least likely to have a case. Realistically the states… Read more »
Folks, this continuing malfeasance by Biden is another step on the Road to Serfdom.
I suggest that Wirepoints readers start stacking now if they haven’t started yet because the dollar is now well on the way to its intrinsic value.
If you want to know your financial future Google on Weimar Germany and focus on the time frame of 1922-1924.
If you want to see how much the government has eroded the value of your dollars, just enter the value of something you bought in the past, like a house, car, or really, any item, into this inflation calculator, and you’ll be stunned at how bad inflation has been in the recent past. The Fed is not your friend.
https://www.usinflationcalculator.com/
Spot on Ataraxis, I once saw a restaurant menu from the 1950s at a flea market. You could eat like a king for about $4