A Young Lady’s UCL-Asian Rant|99Problems.org
Shortest blog I’ll ever write….”STFU”
WASHINGTON — Four months ago, it appeared all but certain that the White House and Democrats in Congress would succeed in overhauling the student loan business and ending government subsidies to private lenders.
President Obama called the idea a “no-brainer” last fall, predicting it would take billions of dollars from the profits of private lenders and give it directly to students, and many colleges were already moving to get loans directly from the federal government in anticipation of the next move by Congress.
But an aggressive lobbying campaign by the nation’s biggest student lenders has now put one of the White House’s signature plans in peril, with lenders using sit-downs with lawmakers, town-hall-style meetings and petition drives to plead their case and stay in business.
House and Senate aides say that the administration’s plan faces a far tougher fight than it did last fall, when the House passed its version. The fierce attacks from the lending industry, the Massachusetts election that cost the Democrats their filibuster-proof majority in the Senate and the fight over a health care bill have all damaged the chances for the student loan measure, said the aides, who spoke on the condition of anonymity because they were not authorized to discuss the matter publicly.
This semester, I’m not in school. I’ve almost completed my degree but like so many other Americans, I’m taking some time off to step out into the “real world” and make the money that will get me through the rest of school. It’s not a surprise. College costs – both public and private – have been skyrocketing, often outpacing the cost of living by 200%. Basically, for every new dollar earned, college costs go up two.
But colleges aren’t the ones making bank here – the lenders are. And they push so successfully on profit measures that students wind up paying down their debt for decades. But check it: right now, there’s a measure in the House to push private companies out of the college loan business for good, expanding the government’s direct loan program as well as boosting the Pell Grant.
I’m a big fan of the almighty P.G.; the Pell Grant has saved my ass for the past few years. Without the Pell Grant, I wouldn’t be able to afford school at all. But even now, the Pell Grant – which were my two favorite words in the English Language – isn’t enough. Even though I won’t see the positive effects of this bill during my years as a student, it’s a welcome and necessary change to the financing of higher education.
But questions still remain and there are many loose ends.
Is this measure enough? And is it a sustainable way to curb college costs?
Many believe that rather than simply reacting to bad lending practices, we need to proactively get to the root of why college costs are increasing so dramatically and rebuild educational financing from the ground up. Others believe that these privatized companies are the root of the problem and when they are taken out of the equation, the ‘system will right itself’.
And a few believe that students can live on ramen and beer alone, so screw ‘em.
What do you think?
College is an investment. College graduates make more money. Blah. Blah. Blah. If you can’t afford college, it all sounds the same.
But what if you aren’t so eager to sign the next 25 years of your life away to Citibank or Sallie Mae? Is it still an “investment” if you decide to be a social worker or librarian?
Lets face it, some college students will choose to work for a non-profit organization. Some, a small newspaper. Others, Teach for America. Some college graduates will choose careers that have comparable annual salaries to non-college graduates.
In such cases, not going to college can definitely be easier on the bank account. Why take out $100,000 worth of loans if you’re going to spend the next 25 years of your life eating Ramen and living in a studio apartment smaller than a closet?
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