"NBC Nightly News" has found yet another hardship story caused by the credit crunch - prospective college students seeking student loans.
The March 6 "Nightly News" aired a segment about how a lack of funding for student lenders will cause some students not to be able to attend their first choice of college.
"More than a dozen lenders have pulled out of the federal student loan program, unable to raise enough money to make loans," NBC correspondent Tom Costello said. "Now - Pennsylvania, Missouri, Michigan, New Hampshire and Iowa have suspended parts or all of their student loan programs - unprecedented."
According to Costello, "many" students could end up with loans that have interest rates "pushing 11 percent." But according to Bankrate.com, the national overnight average for student loans ranged from 6.8 percent to 8.5 percent. That's a distant cry from Costello's dire prediction.
As a solution to this problem, Costello suggested government intervention. "Pressure is building on the federal government to step in as the lender of last resort," Costello said.
But the federal government is behind making college unaffordable in the first place. Since education policy has allowed the government to open its coffers up and loan or give money for college education, institutions have been able to raise tuition at a rate that by far outpaces inflation.
"With more money available for loans, colleges feel a degree of freedom to increase tuition," a Sept. 28, 2007 Investor's Business Daily editorial said. "In 1987, when he was secretary of education, William Bennett noted that rising federal aid had ‘enabled colleges and universities to blithely raise their tuitions, confident that federal loan subsidies would help cushion the increase.'"
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The law of unintended consequenses.
March 7, 2008 - 12:52 ET by c5thenMany lenders are also in the home mortgage biz. Now that they cannot foreclose on the 4% of their delinquent mortgages to generate the needed cash, they have to stop lending to even riskier markets, like college loans.
The day that "politician" became a career choice is the day we started losing the Republic. Let's get it back! Alan Keyes '08.
I really feel for these
March 7, 2008 - 12:54 ET by Dan The Man 2I really feel for these yahoos "will cause some students not to be able to attend their first choice of college" - NOT! I worked my way through school and my first choice was Harvard but had to settle for a junior college. I think its things like this that show we are a weak people and ready to be overthrown by Islam.
Nuke em til they glow then shoot em in the dark.
Oh, heaven forbid that
March 7, 2008 - 13:19 ET by motherbeltOh, heaven forbid that anyone should not be able to attend their FIRST choice of college!! Oh, the humanity!!
I have news for you Brian...ALL families make their college decision based on a lot more than what the kid's first choice is! You have to consider extra costs, distance, who's offering scholarships, etc.
Isn't it a shame that some kid might have to go to his second choice school because they want him badly enough to offer him a good scholarship! Why not insist that his first choice college be required to match it? How about tuition, shouldn't they all be the same?
Brian, are you at all concerned that some kids don't even get accepted at their first choice of college?
Will your next crusade be to remedy that glaring injustice?
Do these people never
March 7, 2008 - 13:04 ET by bigtimerDo these people never quit...
What is next with them...I'm sure something really mind-bending will come up soon...like the cost of food is raising so we had better have immediate intervention and send everyone a check...
Credit cards, Housing, car loans, health care, now college loans....
Unbelievable, something we are all suppose to be responsible for on our own, most of us in the real word know this and move on...
Socialism at it's best...make sure the younger generation thinks they are OWED all of this and they have absolutely NO responsibility for their own choices in life...nope the govt. will take care of you...at he expense of the hard working people in the real world.
This is getting way past disgusting anymore.
Unbelievable, something we
March 7, 2008 - 13:13 ET by motherbeltUnbelievable, something we are all suppose to be responsible for on our own,
Right, bt, and how many student loans have been defaulted on already? The number is staggering. Next it will be "just forgive the loans, they can't pay them."
Well Obama has that figured out too....every child will be able to go to college. Probably at government (read: taxpayers') expense.
I've posted this before at some time; it's from a speech by Liam Fox, MP. It's regarding England, but perfectly describes the creeping socialism we have here:
First, the Labour Government was appropriating more and more of people's take home pay. It was turning adults' earnings into little more than children's allowances.
Second, as well as leaving people with less and less of their own money, Labour was taking out of their hands the important decisions that affected them and their families. From the education of their children to saving for retirement, the big decisions increasingly became the function of a so-called benevolent state. Like pocket money, people's earnings were there to be spent on the trivialities of life; not the serious stuff.
(emphasis added)
Sound familiar?
MB and BT - the Dems are just like ambulance chasers who
March 7, 2008 - 13:23 ET by Dee Bunkthrive on people's misfortunes. They want to turn every accident into a way for them to profit. No tragedy is accidental or due to poor planning of an individual. They are all caused by someone else and it just so happens that they can help you get even by taking that bad persons money for themselves while giving you peanuts in comparison. They line their pockets with money and their empires with power and yet people still have accidents.
Yet another loan crisis that isn't
March 7, 2008 - 13:06 ET by CobraManSo NBC Frightening News is finally aware that most college bound kids need loans to finance their higher education? And they also realize that loans have to be paid back and that interest is charged? And also that some people can never afford to attend their first college of choice? Man, that's something I've known since my high school days when college loans rates WERE in the double digits and MOST colleges, not just the most expensive ones, were way out of my price range. Where has NBC been the last 30 years or so?
This really is
March 7, 2008 - 13:27 ET by BrownCowThis really is disconcerting... We have taken the past 30 years to raise children in the fashion that "everyone is a winner" and "there is no such thing as a failing grade". My point is that we have taught the younger generations that they can have and do anything they want with minimal effort. I have worked my way through comunity college and transfered into the local university to get a degree. Sometimes life isnt rosie (no fat puns intended). The America that I love has determination and perseverece to work hard for what they want. Just my opinion : /
In this present crisis, government is not the solution to our problem. Government is the problem. -Ronald Reagan
Maybe college would not cost so much if
March 7, 2008 - 13:45 ET by YahooWatcherthey hired professors that could teach more than two classes a week. These professors should also get off campus once in a while where they would discover things like the Vietnam War has indeed ended and it is no longer fashionable to walk around with long hair looking like Jerry Garcia while under the influence of illegal drugs, simultaneously listening to Credence Clearwater Revival.
Actually the biggest reason
March 7, 2008 - 14:50 ET by Conservative VoiceActually the biggest reason why tuition is up is because government subsidizes it. Remove pell grants and such, and let market forces come in, and it will be amazing how fast tuition is lowered.
Same reason with medical...Medicine is expensive due to lawsuits, but its also expensive because of medicare...with a third party paying there is no one on the phone complaining about the bill.
And let us not forget....
March 7, 2008 - 15:17 ET by Prester John....the college textbook racket. One semester my son had to pay over $600 for books for 5 lousy classes.
I wonder what kind of kickbacks these professors who require certain texts receive?
Its a monopoly and they know
March 7, 2008 - 15:50 ET by Conservative VoiceIts a monopoly and they know students can and will pay it. Again a government problem due to government solutions ( minimum wage, subsidizing college tuition, etc ).
did no one see this coming?
March 7, 2008 - 14:02 ET by candanceThis is what happens when everyone thinks it's acceptable to have bad credit: the lenders stop being generous.
Student loans are usually among the first bills that go into default. You pay your light bill or you have no lights, you pay your car bill or you have no car - but college lenders can't take away your degree for nonpayment. So it's an easy bill to let slip.
The more the government bails out these borrowers, the more the lenders will tighten their fists with car loans, consumer loans, and refi deals.
It's the 1920s all over again.
The cycle
March 7, 2008 - 14:16 ET by LastlibertarianHow apropos,
The more socialist the lectures become, the more costly the tuition becomes.
Ain't that the
March 7, 2008 - 14:21 ET by Clear thinkerAin't that the truth!
"Abstain from McCain"
I have any idea
March 7, 2008 - 15:15 ET by Prester JohnWhy don't the people who have children save for their kids' education instead of wasting it on houses and cars they can't afford, daily stops at Starbucks, ridiculously priced vacations etc.
That way the kids will either a) won't need to borrow as much money to go to some snotty nosed private liberal arts college or b) they can attend a good state school and graduate with little if any debt.
A radical idea for sure but I thought I'd mention it.
While I agree that people
March 7, 2008 - 15:48 ET by Conservative VoiceWhile I agree that people should be smart with their money, are kids entitled to their parents money to go to school? I paid my own way, with less than 10 grand in debt.
What we really need are conservative colleges who give a quality education that is afforable that concentrate on Educating. ( Colleges recieve a lot of their money from Research, so Professors are in the print or die...hence don't focus on teaching ). Do we really need to pay the high salary doctor to teach undergrad, when someone with a Masters, or working on their masters would be sufficient?
Fact is the more government provides free education the bigger the problem is going to be.
You are of course, correct.
March 7, 2008 - 16:14 ET by Prester JohnBut I'm tired about listening to parents complain about not being able to afford college for the kids because they didn't bother doing a little planning. Somehow they think someone is going to just wave a magic want and make $50k appear to pay for a state school.
And I cringe everytime I here someone talk about little Johnny or Mary heading off to some private school at $40k a year.
Those people are nuts.
The one truly outstanding conservative school is Hillsdale College in Michigan. They don't take Federal money so they don't have to play by Federal rules. It apparently has a hellacious endowment.
no words...
March 7, 2008 - 15:22 ET by yahI surprised by Bush. It's a very funny Presedent I think.
----
buy movies online
So sad. Some students
March 7, 2008 - 16:07 ET by fitzfongSo sad. Some students won't be able to attend their first choice college. Will somebody please think about...the children?!?!?!? Would it be too much to ask for some of these bloated professors and college bureaucrats to do with less, so that their students could afford a first class education? Perhaps the universities should stop taking increases in student grants and loan programs as an instant invitation to raise the price of tuition? Oh, is that asking too much? Perhaps the decline in university attendance due to the drying up of some student loan programs will give the universities some clue as to how relevant they actually are...and they might be forced to cut their expenses and lower their prices to become efficient and competitive for once. Not likely in an atmosphere where a college degree is often a prerequisite for employment even though the earning of such a degree is no real indicator of one's fitness for employment. As a result, universities hold young peoples' futures for ransom since cowardly bureaucrats in private sector middle management are afraid to see past the "education" section of a resume. And the beat goes on...
»→ College of choice
March 8, 2008 - 10:00 ET by Cool ArrowMy college of choice is "The College of Cardinals". Not that I'm Catholic or like to wear red robes, but I'd like to be pope someday and get a taste of what it's like to be as adored as Obama.
♣ a seal
another "Crisis"..
March 10, 2008 - 13:28 ET by Extirpater"Brain Dead Brian" Williams does not even have a comprehensive grasp of the obvious.
The only thing he can do is look at the camera and read the daily propaganda without blinkig an eye.
another "Crisis"..
March 10, 2008 - 13:29 ET by Extirpater"Brain Dead Brian" Williams does not even have a comprehensive grasp of the obvious.
The only thing he can do is look at the camera and read the daily propaganda without blinking an eye.