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Inch by inch, brick by brick...

Obama to sign student loan legislation in Virginia

"WASHINGTON – President Barack Obama prepared Tuesday to sign the piece of his sweeping health care overhaul that makes the government the primary lender to students and strips banks of that power.

Obama's hard-fought legislative victory packaged two of his domestic priorities. Obama already signed the bulk of the health care legislation, but a final set of tweaks provided a route for the education package, the largest rewrite of federal college assistance programs in four decades."

No College Student Left Behind?

Appaholic wrote:No College Student Left Behind?

Nice.

How does this strip away freedoms?

By cutting GREEDY lenders out of the cycle for FEDERAL student loans?

Lenders that believed in Privatized Profits, Socialized Losses?


Hysteria there, Baldy. This is something that should have happened years ago. Kudos to Congress and Obama for doing this - this will save the taxpayers money.

dbackjon wrote:How does this strip away freedoms?

By cutting GREEDY lenders out of the cycle for FEDERAL student loans?

Lenders that believed in Privatized Profits, Socialized Losses?


Hysteria there, Baldy. This is something that should have happened years ago. Kudos to Congress and Obama for doing this - this will save the taxpayers money.

Oh yeah....those evil greeeeeeeddddddyyyyy lenders. Save the drama, Queen.

Privatized profits and socialized losses? Ummm, they are government BACKED loans. It's basically no different than what happens with Fannie and Freddie, so I guess you also support the Nationalization of the home mortgage industry, too? I mean the government already owns 1/2 of all mortgages now.

If you think this program is going to save money, you are only fooling yourself. It's the government and they only know how to spend our money. The Dept. of Education will now have to hire thousands of workers to oversee this "program", so there goes your "savings". Add to that the inefficiency of government and we lose money, big time.

As usual, bback bowing to the altar of big government and spitting in the face of freedom, BIG surprise there.

Why do you hate America so much?

Baldy wrote:

dbackjon wrote:How does this strip away freedoms?

By cutting GREEDY lenders out of the cycle for FEDERAL student loans?

Lenders that believed in Privatized Profits, Socialized Losses?


Hysteria there, Baldy. This is something that should have happened years ago. Kudos to Congress and Obama for doing this - this will save the taxpayers money.

Oh yeah....those evil greeeeeeeddddddyyyyy lenders. Save the drama, Queen.

Privatized profits and socialized losses? Ummm, they are government BACKED loans. It's basically no different than what happens with Fannie and Freddie, so I guess you also support the Nationalization of the home mortgage industry, too? I mean the government already owns 1/2 of all mortgages now.

If you think this program is going to save money, you are only fooling yourself. It's the government and they only know how to spend our money. The Dept. of Education will now have to hire thousands of workers to oversee this "program", so there goes your "savings". Add to that the inefficiency of government and we lose money, big time.

As usual, bback bowing to the altar of big government and spitting in the face of freedom, BIG surprise there.

Why do you hate America so much?

Actually, Baldy, while I obviously don't support nationalization of the lending industry...

...maybe you can expound why the student loan originators receive ANY profit other than a nominal servicing fee when the Government has legislated little or no risk in student loan instruments: Cannot be wiped out by bankruptcy; govt. guaranteed defaults.

Where's the risk?

Sounds more like a monopolistic shakedown of those seeking educational financial assistance.

Baldy wrote:

dbackjon wrote:How does this strip away freedoms?

By cutting GREEDY lenders out of the cycle for FEDERAL student loans?

Lenders that believed in Privatized Profits, Socialized Losses?


Hysteria there, Baldy. This is something that should have happened years ago. Kudos to Congress and Obama for doing this - this will save the taxpayers money.

Oh yeah....those evil greeeeeeeddddddyyyyy lenders. Save the drama, Queen.

Privatized profits and socialized losses? Ummm, they are government BACKED loans. It's basically no different than what happens with Fannie and Freddie, so I guess you also support the Nationalization of the home mortgage industry, too? I mean the government already owns 1/2 of all mortgages now.

If you think this program is going to save money, you are only fooling yourself. It's the government and they only know how to spend our money. The Dept. of Education will now have to hire thousands of workers to oversee this "program", so there goes your "savings". Add to that the inefficiency of government and we lose money, big time.

As usual, bback bowing to the altar of big government and spitting in the face of freedom, BIG surprise there.

Why do you hate America so much?

Talk about a drama queen.

There is no risk to the lenders. Only excessive profit. This should be a no brainer for anyone.

travelinman67 wrote: Sounds more like a monopolistic shakedown of those seeking educational financial assistance.

We have a winner!

dbackjon wrote:How does this strip away freedoms?

By cutting GREEDY lenders out of the cycle for FEDERAL student loans?

Lenders that believed in Privatized Profits, Socialized Losses?


Hysteria there, Baldy. This is something that should have happened years ago. Kudos to Congress and Obama for doing this - this will save the taxpayers money.

Dont act like you want to save the taxpayers money and then want the fu*king healthcare bill passed! JFC!!

Also there is no such thing as "excessive profits".

You see Dback the job of a business is to make money, they do this to pay the employees, shareholders, bills, excessive taxes, insurance, workmans comp, etc and then if their is any left over they can keep it.

dbackjon wrote:How does this strip away freedoms?

By cutting GREEDY lenders out of the cycle for FEDERAL student loans?

Lenders that believed in Privatized Profits, Socialized Losses?


Hysteria there, Baldy. This is something that should have happened years ago. Kudos to Congress and Obama for doing this - this will save the taxpayers money.

You show your ignorance more and more each day, Jon.

I think you and Alphie are far ahead in the ignorance department...

dbackjon wrote:I think you and Alphie are far ahead in the ignorance department...

Yeah whatever you do dont respond to the content of my post just call me stupid....thats what Im here for.

travelinman67 wrote: Actually, Baldy, while I obviously don't support nationalization of the lending industry...

...maybe you can expound why the student loan originators receive ANY profit other than a nominal servicing fee when the Government has legislated little or no risk in student loan instruments: Cannot be wiped out by bankruptcy; govt. guaranteed defaults.

Where's the risk?

Sounds more like a monopolistic shakedown of those seeking educational financial assistance.

Why? Because they are using the bank's money. Money that could be used somewhere else making a better return than the 1.5%-8.5% that average student loans make. Plus, if the bank starts loaning during the student's freshman year, it will be at least 4 years before the bank will even begin to start receiving interest much less it's principal in return.

The opportunity costs for banks in issuing student loans are rather high, so I see no problem with banks charging a nominal interest rate in return.

dbackjon wrote: There is no risk to the lenders. Only excessive profit. This should be a no brainer for anyone.

Please quantify what exactly "excess profit" means, and who should be the arbiter of these so-called "excess profits".

dbackjon wrote:There is no risk to the lenders. Only excessive profit. This should be a no brainer for anyone.

Really? Are you a lender? Do you do student loans?

Excess profits is lib code for ANY evil corporation that makes any money.

Baldy wrote:

travelinman67 wrote: Actually, Baldy, while I obviously don't support nationalization of the lending industry...

...maybe you can expound why the student loan originators receive ANY profit other than a nominal servicing fee when the Government has legislated little or no risk in student loan instruments: Cannot be wiped out by bankruptcy; govt. guaranteed defaults.

Where's the risk?

Sounds more like a monopolistic shakedown of those seeking educational financial assistance.

Why? Because they are using the bank's money. Money that could be used somewhere else making a better return than the 1.5%-8.5% that average student loans make. Plus, if the bank starts loaning during the student's freshman year, it will be at least 4 years before the bank will even begin to start receiving interest much less it's principal in return.

The opportunity costs for banks in issuing student loans are rather high, so I see no problem with banks charging a nominal interest rate in return.

Jesus Christ. It's no fucking WONDER this country is gone to hell in a handbasket. 2300 members here and only TWO actually understand finance. Welcome to a very exclusive club, Baldy.

AZGrizFan wrote: Jesus Christ. It's no **** WONDER this country is gone to hell in a handbasket. 2300 members here and only TWO actually understand finance. Welcome to a very exclusive club, Baldy.

Thanks.
Are you hiring?

Baldy wrote:

AZGrizFan wrote: Jesus Christ. It's no **** WONDER this country is gone to hell in a handbasket. 2300 members here and only TWO actually understand finance. Welcome to a very exclusive club, Baldy.

Thanks.
Are you hiring?

Not right now, but when we are, I'll let you know.

travelinman67 wrote:Actually, Baldy, while I obviously don't support nationalization of the lending industry...

...maybe you can expound why the student loan originators receive ANY profit other than a nominal servicing fee when the Government has legislated little or no risk in student loan instruments: Cannot be wiped out by bankruptcy; govt. guaranteed defaults.

Where's the risk?

Sounds more like a monopolistic shakedown of those seeking educational financial assistance.

FHA insures mortgages. Heaven forbid if they ever decided to lend directly.

AZGrizFan wrote:

Baldy wrote:
Thanks.
Are you hiring?

Not right now, but when we are, I'll let you know.

Please, I think I would like Arizona.

Baldy wrote:

travelinman67 wrote: Actually, Baldy, while I obviously don't support nationalization of the lending industry...

...maybe you can expound why the student loan originators receive ANY profit other than a nominal servicing fee when the Government has legislated little or no risk in student loan instruments: Cannot be wiped out by bankruptcy; govt. guaranteed defaults.

Where's the risk?

Sounds more like a monopolistic shakedown of those seeking educational financial assistance.

Why? Because they are using the bank's money. Money that could be used somewhere else making a better return than the 1.5%-8.5% that average student loans make. Plus, if the bank starts loaning during the student's freshman year, it will be at least 4 years before the bank will even begin to start receiving interest much less it's principal in return.

The opportunity costs for banks in issuing student loans are rather high, so I see no problem with banks charging a nominal interest rate in return.

So, we are basically doing the banks a favor by removing a slightly marginal return business model that requires excessive capitol & administration. So this should allow banks to invest their money in more profitable business models like Derivatives, right? Or am I being too simple.....

Appaholic wrote: So, we are basically doing the banks a favor by removing a slightly marginal return business model that requires excessive capitol & administration. So this should allow banks to invest their money in more profitable business models like Derivatives, right? Or am I being too simple.....

I have a novel idea. Maybe we should let the banks decide where to invest their deposits, whether it be student loans, derivatives, or a mixture of both?
Or am I being too simple?

Baldy wrote:

Appaholic wrote: So, we are basically doing the banks a favor by removing a slightly marginal return business model that requires excessive capitol & administration. So this should allow banks to invest their money in more profitable business models like Derivatives, right? Or am I being too simple.....

I have a novel idea. Maybe we should let the banks decide where to invest their deposits, whether it be student loans, derivatives, or a mixture of both?
Or am I being too simple?

I agree....not arguing, just trying to understand wht the hell you & Z seem to understand....

Appaholic wrote:

Baldy wrote:
I have a novel idea. Maybe we should let the banks decide where to invest their deposits, whether it be student loans, derivatives, or a mixture of both?
Or am I being too simple?

I agree....not arguing, just trying to understand wht the hell you & Z seem to understand....

One obvious point is pretty easy to understand. The federal government can kill people and keep the peace more effectively than private corporations, but little else that they touch becomes more useful, effective or efficient.