Wednesday, March 25, 2009

Up Next: Federal Student Loan Bailouts?

I worked my way through college.

I held jobs while attending community college, and I worked full-time after I transferred to Fresno State. When I entered graduate school I had no student debt. And I continued working my first year of the Ph.D. program at a local Chevron station, turning down thousands of dollars in federal student loans that were available. I wanted to be careful. During my last couple of years in grad school, I borrowed to finance my dissertation research, which meant I could write full time instead of conduct TA seminars at the university. I've already paid off one of my student loans, and on two big loans outstanding, I pay less than five hundred a month. For a professor, that's manageable.

Basically, I did what most people do, or at least that's what I think most people do, or should do ... be responsible. I'm proud of my achievement in that sense. That just seems like the American way.

So readers can see how I might be a little turned off by Allahpundit's receptiveness to growing demands for a TARP-style federal bailout of student loan debtors: "
Stimulus idea: How about massive forgiveness of student loans?"

Read the essay at
the link.

The guy at
Retake Education pretty much captures my sense (outrage?) at all of this:

Screw you Allahpundit. Is this what the supposed Right has come to? Hey, we’re throwing tons of money at the problem at rewarding people who acted irresponsibly at the expense of those who didn’t, why not throw some more cash on the fire while we’re at it? Screw people who were too stupid to jump on the federal gravy train when they were in college, or who stupidly paid back their loans as promised by sacrificing in the short term. What a bunch of losers they are! And all those folks who worked their asses off while they were in school so that they wouldn’t have to take out loans? Screw ‘em. And, ahem, people who are working full time jobs while going to school at night so that they can better themselves? Screw ‘em!

What a moronic, insulting idea. Allahpundit and Hot Air should be ashamed to even be thinking this.
See also, "Asking for Student Loan Forgiveness," via Memeorandum.


Flag Gazer said...

Is it time for Allahpundit to go work for Kos? - this is the same thinking they have....

When I went to college I worked nights - long nights - and studied on my breaks and in the wee hours of the morning. I grabbed naps when I could.

Loans? - They hadn't become part of the process yet - you paid money or maybe won a small scholarship or two. But, the last thing that I can imagine was having debt hanging over me. My youth and stamina got me through the sleep deprivation. My common sense knew big loans would come back to haunt.

I am sickened at the irresponsiblity that has become the norm in this country and at the number of people on the right with their hands out too.

PRH said...

It won't end until the American public wakes up to what this rookie Marxist has in mind...sorry to say, most Americans don't want to wake up.

Anonymous said...

I worked through the 2nd and 3rd years of law school...And still borrowed well over $100,000 dollars to pay tuition, live, and eat in the City of Chicago. And now I pay nearly $800 per month in loan debt (I paid over $6000 in interest alone in 2008).

My wife and I made certain sacrifices while in school so that our debt would not be larger (we lived in the crummiest part of Chicago, for starters), and we make certain sacrifices now so that our debt is manageable.

Now all of these people that lived it up and spent money while in law school, and all those people spending beyond their abilities right now - basically people that have been living high on the hog while my wife and I made sacrifices - will get rewarded for their behavior.

Seriously, there are people who borrowewd every last cent they could get their hands on so they could live downtown and eat at fancy restaurants and drink fine beer on the weekends, etc. I lived in a dump and ate a lot of quick meals. Our entertainment was a free jaunt over to Lake Michigan.

These people mortgaged their futures to live a life they could not afford, and now they are going to get bailed out, while those of us who actually made smart decisions will be left wondering why.

Too bad. We used to understand this, too. Federal student loans were the one thing that could not be discharged in bankruptcy. We understood that borrowed money to finance an education is money that can be paid back with the dividends of said education. The system should not change.

Rich Casebolt said...

This is a derivative of class envy ... "they bailed out the fat cats, so why not us, too?!!"

Another area for the President and his Witnesses to capitalize upon, to encourage dependence upon their equivalent to the "144,000" - those who have "proven" themselves "worthy" to rule us all from Heaven, DC.

I went along with the original bailouts, thinking it was the financial equivalent of fixing infrastructure ... but I am now beginning to think that we would have been better off letting the potholes develop and bridges collapse on our financial roadways ... for our leaders are now going to use that roadwork to justify paving over the entire nation with the soft, cuddly fascism of Socialism Lite, a road surface that degenerates into ruts that we'll be stuck in for quite a while.

My two kids obtained their bachelor's degrees without any student loans ... and while my son and daughter-in-law did take out student loans for graduate education, they are working to quickly pay them off, and not looking for a bailout.

Federal bailout? NO.

If people need help, they should be going to We the People directly, from where they're at ... so their individual situation can be reviewed by those who do not stand to score political points by indiscriminately treating the symptoms (while ignoring the real problems) ... those who can be trusted more to resolve the problem properly ...

... instead of relying upon the faith healing of Obama and his Witnesses.

Trish said...

Join his GIVE program, and become obama youth...

Generations Invigorating Volunteerism and Education Act

The House passed the Generations Invigorating Volunteerism and Education Act on Monday. The bill includes language indicating young people will be forced to participate in mandatory national service programs. The bill also states that "service learning" will be a mandatory part of the youth curriculum.
That doesn't sound much like "volunteerism" does it?
H/t Gateway Pundit

Be afraid, very very afraid.

The Vegas Art Guy said...

Hell no, I paid my way through college, and the only help I got was a $500 award from the local community college. I worked full time, went to school part time and I have a wife and kids. If I can do it, anyone can.

Anonymous said...

It took me six years to earn my BA, because I had to take reduced course loads and work my way through school.

Uncle Sam is going to take care of my older daughter's outstanding student loans, but she had to join the Army to get that done. If people need student loan forgiveness, that sounds like a good way to go to me: earn it!

The Vegas Art Guy said...

Forget afraid, get mad Trish. They want you afraid, they don't want you mad.

Anonymous said...

Great article.

Anonymous said...

The good guys aren't winning and it's later in the game than you think.

Anonymous said...

"a soft cuddly fascism of socialism lite"

Rich do you have a clue what you are talking about or do you just sit their and type away in poetic one liners in the hope that it makes sense?

I am trying to figure out the interelationship between "socialism lite (whatever that is), and fascism. Apparently you've got this all defined and ready to serve for us. Please do!

Anonymous said...

Screw you Allahpundit. Is this what the supposed Right has come to?

In fairness to AP, he was always more of a 911 liberal than any sort of righty. It's odd to note how many of the big name "right wing" bloggers this is true of. Roger Simon and Charles Johnson are two others who come instantly to mind. I suppose that over time we'll see a gradual replacement of these sorts with more conventional conservative and libertarian bloggers.

bluebear0z8 said...

Everybody's story is different. Most people are responsible and some aren't. My student loan debt is $120,000 at 8.25% interest for the last 20 years. I had scholarships and grants but the cost was expensive. I never made enough money to pay the bill. Income sensitive didn't even work. It is all interest.

I have tried to get the interest down but it was only for new loans. I had to go to court and file a chapter 13 to legally cut the interest. Now the company is not getting any interest and I am paying on the principle. It will be half paid off in 5 years at my credit's expense. Of course, we are only legally responsible for paying the principle, not the interest. I have worked on government contracts and for the government and I really don't feel obligated to pay anything anymore. I have done my tour and am still paying. Retirement is out of the question. Oh by the way - I just got a 10% pay cut and my hours cut back. How about a student loan bailout?

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Anonymous said...

I'm all for the market taking care of itself. The more you screw with it, the more things will get out of whack from the natural order. Nature will end up taking its course, and eventually righting itself.

I'm all for people being held responsible for their own actions, and held accountable therefrom. I* don't think the way things wore worded was particularly good, but in this case, I see a logic to aid for some loans.

Barney Frank & Chris Dodd and company porked investers with the Fannie & Freddie business. People were over extended, and they're getting handouts for irresponsibility on either their side or the bank's side. Banks are taking the high hard one, as are investment companies. The economy's taken quite the hit.

Side effect, you have plenty of people out there who have been responsible. People who have been managing and repaying their loans. These people end up out of luck and work, when companies shut down, or positions are eliminated. Bankruptcy law only provides elimination of student loans in the presence of an economic hardship. Loan repayment can be deferred, although interest always accumulates.

Handouts for everyone? Hardly. But, if they're about to give bonuses and benefits to the irresponsible who tried to live outside their means, then the very least that can be done is a protection for the responsible folks hurt financially though no fault of their own.

Blanket amnesty? Hell no. They shouldn't have done that to begin with. But selective patches to keep the innocent from falling through the cracks the government caused? That's only fair, unless they want you to fail, so you latch onto the teat.