Complete with a background track fit for an indie horror flick, NBC’s “Today” bashed student loan companies and colleges with a segment on “student loan schemes.”
On June 21, consumer correspondent Janice Lieberman ignored personal responsibility as she bashed colleges and lenders without giving them a chance to rebut.
“You would assume that the college you choose would be on your side and find the best interest rate for a loan that you’ll be paying for many years. Well, think again,” said Lieberman.
Wait a minute - why should a borrower assume anyone else will find them the best deal? We all know what assuming does.
Lieberman then tarred lenders and colleges with a broad generalization of misconduct and implied throughout the six minute segment that students had been harmed.
“[C]ollege administrators have been taking payments and gifts from some top lenders,” said Lieberman.
That generalization is old hype based on the perspective of New York’s liberal attorney general Andrew Cuomo who led a crusade against lenders and colleges for “cozy relationships” in past months.
“Today” did not include anyone from the student lending industry, or from a college financial aid office to point out that Cuomo’s investigation only turned up two documented cases of wrongdoing.
Lieberman also used an anecdote recycled from The New York Times to illustrate why “government loans just don’t cover enough of the expenses, so families must turn to a conventional lender.”
The “Today” correspondent emphasized the cost of private education requiring “mortgage” sized loans, but left out the fact that students can choose from public colleges too – which usually cost much less.
In fact, according to the October 2006 U.S. News and World Report the average yearly cost of tuition (including public and private) is $5,836 – far less than the $30,000 price tag mentioned by Lieberman.
—Julia A. Seymour is an assistant editor for the Business & Media Institute.
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You would assume that the c
June 21, 2007 - 18:33 ET by motherbeltYou would assume that the college you choose would be on your side and
find the best interest rate for a loan that you’ll be paying for many
years.
Um, why? Why would a college care where you get the money for your education, as long as you get it????
and
“government loans just don’t cover enough of the expenses, so families must turn to a conventional lender.”
Again, why? Because they didn't plan ahead and save.
But of course, the thinking is: How DARE the government not provide enough to cover all the expenses????? No we have to borrow money from a REAL lender, and pay it back, and on time, too!! Oh, the humanity!!!
Student loans
June 21, 2007 - 20:19 ET by billbThe real question is: WHY DOES COLLEGE TUITION COST AS MUCH AS IT DOES? The student loan problem is caused by the UNCONTROLLED increases in tuiton. Colleges should be subject to that old liberal favorite "Excess Profits Tax"!
More nanny-statism. I recentl
June 22, 2007 - 08:07 ET by pbanks7More nanny-statism. I recently received an email petition to have congress force insurers to keep mastectomy patients in the hospital. While it seems extreme to do a mastectomy on an outpatient basis, one of the reasons people can't afford insurance is because of the the government mandates. For instance, pregnancy coverage is mandated for women in childbearing years, even if they've had a hysterectomy.
The point I am making, though is that many people have the attitude, "It's not covered by insurance, so I can't do it." BS! You mean you might need to pay for something out of your own pocket? Again, where's the humanity!?!
Ignorance is bliss. It's easier to repeat a mindless slogan than to do some actual research.
Yet another example of the
June 21, 2007 - 18:56 ET by RESTLESS 1Yet another example of the government sticking where it doesn't belong, imho. Personal responsibility people. If sudents can't afford to go to college, then they SHOULD have to borrow from a private lender. Let the market decide whether or not private lenders should provide financing for college to students at lower rates. Seems to me there is quite a market there.
Not only that, but why is it
June 21, 2007 - 19:48 ET by nnptcgradNot only that, but why is it assumed a student MUST go to college? There's a number of technical schools that would teach a young man/woman useful job skills, and is far cheaper. Not to mention the possibility of the military.
I remember my senior year of high school (in 2000). I hadn't wanted to go to college and end up in debt before I was 20 so I chose to go in the military. I informed my "guidance counselor", who the year before had been pestering me weekly about which college to go to, that I had joined the Navy. Every time I had mentioned the possibility of the military the year before she would get a blank look and say "That's possible" before going off on more college options. The way she looked was like her head was going to start rotating like a top and pea soup pour from her mouth.
Mother nature is a bitch - Ninth Corollary of Murphy's Law
Yes, it would be nice if ever
June 22, 2007 - 00:17 ET by UnsaneYes, it would be nice if every high school in America adopted the idea that they only have four years left to educate Johnny/Jane, but instead, high school in this country is a place to learn...athletics...social interaction via extracurricular activities...and everything else, it seems, EXCEPT for (gasp!) learning and education. But then, why should they teach when they can just dump them onto colleges and universities and hope THEY teach them what they need to know? (Hence the high school mantra of "When you go to college!!!... or "What college are you going to???...")
MAKE WAY FOR THE SAN ANTONIO SPURS!!! THE 1999, 2003, 2005, AND 2007 NBA CHAMPIONS!!!!
Just not enough people are le
June 22, 2007 - 00:22 ET by UnsaneJust not enough people are learning about the joys of FREEWILL.
I paid my way through community college...with a (gasp!) credit card. As I owed nothing else on it, I would walk to the bursar's office when the tuition was due and put the whole thing on there (and in the process I paid a quarter of what it would cost for core curriculum courses at the university I attended later). When the bill came due, by that point I had saved up the money to pay it off, and I did so.
I do have a student loan that is well on the way to being paid off, waaaaaay early. Oh yes, and there was another way for me to pay my tuition: ROTC, and the scholarships I qualified for being in ROTC and maintaining a high GPA.
Point being, there are MANY MANY ways to go about paying for a bachelor's. You don't have to go crying to the Nanny, or even your own parents, to pay your way.
MAKE WAY FOR THE SAN ANTONIO SPURS!!! THE 1999, 2003, 2005, AND 2007 NBA CHAMPIONS!!!!
College Loans
June 22, 2007 - 10:44 ET by misterbee241Like you, I paid my own way through a local Bible school with cash - they didnt take credit cards and didnt have financial assistance. So while I was working full time, I paid my tuition. When I retired, my wife put me through the rest of the way. As far as financial assistance, well, God provides. He gave my wife and me the strength to work and the persistance to see my education through.
Exactly correct. My wife work
June 22, 2007 - 11:40 ET by Mean Gene Dr. LoveExactly correct. My wife worked her a$$ off in high school to maintain outstanding grades and got a full-ride scholarship to UNLV for 5 years (because of the honors program)...she graduated summa cum laude without paying a single cent out of her/our pocket for her education.
I screwed around in high school, therefore I couldn't qualify for any scholarships or grants (also because I am a white male). So far my military benefits have paid for 95% of my college expenses (I still have to pay for books and "technology" fees), the remaining 5% is hardly a burden because I know that I cannot expect to get an education for free. And while I am in the military I am learning/using valuable skills and responsibilities and getting managing experience that will allow me to be more marketable than a recent college grad with little to no work experience when I retire from military service.
BTW...I am raising my kids to know full well that my wife and I will not be responsible for funding their college education. They will have to study hard and earn grants, scholarships, or awards. Or the will have to earn their own money to pay for their education or join the military. I want my children to value their education because they had to work hard and earn it.
"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." --Thomas Jefferson
Maybe if some of these parent
June 22, 2007 - 08:33 ET by Prester JohnMaybe if some of these parents who are so concerned about sending their kids to school had sacrificed a bit when their kids were born and invested every month so that there was a chunk of money sitting there at high school graduation we wouldn't be hearing all this whining.
The lack of foresight and discipline by parents is appalling. What, they expect the kid to wave his hand and make $50,000 suddenly appear when they turn 18? And who says they have to send their kids to some snotty nosed private liberal arts school at $35,000 a year?
Are people nuts are just plain stupid?
}}----> Neither Prester
June 22, 2007 - 08:43 ET by Cool ArrowYou seem to suggest the existence ot two parents. The government has clearly established only one parent is remotely needed.
The Village cares for the children. Kumbaya.
I stand corrected.
June 22, 2007 - 09:02 ET by Prester JohnI stand corrected.
Why should parents be expected to pay?
June 22, 2007 - 10:07 ET by JRSo, Prester John, do you thinks parents should be expected to foot the entire college/university bill for their kids? Where's the notion of personal responsibility? If a person believes that a degree is important, then he/she should find a way to make it happen. My parents couldn't afford college for me, so I worked my way through school. I got a quality education without breaking the bank or accumulating massive debt.
One can go to junior college for the basic requirements, which is much cheaper than a state university. Then there are the state universities, which are drastically cheaper than private universities. As for the quality of education, I went to a state university in Illinois to get my degrees. From my personal experience, it isn't the school I went to that makes a difference, it's what I've done with the education I've received.
The majority of these "kids" you mention are actually adults, who should be taking responsibility for their own lives and not expecting a handout from others.
I agree with you 100% on ever
June 22, 2007 - 10:46 ET by Prester JohnI agree with you 100% on everything you said.
I do not think parents have any particular obligation to pay for 100% of college for their kids especially if the kids wants to go to that snotty nosed private liberal arts school I mentioned. All I'm saying is if the parents do want to help there are better ways than borrowing money i.e. planning ahead a bit and saving what they can when the kids are young and not burdening themselves when they are in their late 40s or 50s.
Let's look at student loans f
June 22, 2007 - 08:59 ET by jdhawkLet's look at student loans from the prospective of the <gasp> loan company:
Loan company to student: Do you have a job? Student: No.
Loan company to student: Do you have any collateral? Student: No.
Loan company to student: How much do you need each year and in total? Student: $40, 000 per year for a total of $160,000 unless I go to graduate school. Then, $40,000 per year for each additional year of graduate school up to four years.
Loan company to student: When can I expect you to pay it back? Student: Well, I can't pay a dime until I finish school which could be 4 years from now or maybe as long as 8 years from now.
Loan company to student: So, to recap, I am going to loan you up to $320,000 over up to an eight year period with no expectation that you will ever be able to pay the shareholders of this company back. And, you may take as little as 10 years to pay the shareholders of the company back or as long as 30 years. So, in as little as 14 years from now or as long as 30 years from now, if you pay the shareholders of this company back, the debt will be settled. Student: Yes.
Loan company to student: And, the shareholders of this company are to loan you the money at below or at the rate that we give our best customers. Customers that have jobs and have collateral to pay their loan back, will start to pay back the loan as soon as it is lent, and will pay back the loan in a much shorter time frame. Student: Yes.
Loan company to student: And, now we have the drive-by media on our neck. Why are we in this business, again? Student: I have no idea.