Zero Interest College Loans - Page 2

RightinNYC · 01-28-08, 03:20 PM

Quote:

Originally Posted by Monk-Eye

"Modern Money Myths"
The idea ist that no interest would be paid on the loans, neither by the government nor the student.

A pool of taxes as a zero interest education fund would need to be accumulated.

Assuming that the education pool is not borrowed against by some dimented political entity, the volume of money, being reimbursed over time, could remain transparent, as a public keepsafe.

The reserve fund, being repaid in time, does not represent a financial loss or gain, except by those suits demanding that everyone bleed to their upper hand.

Those parents capable of funding college for their children out of pocket would find zero interest represents a major deferment of debt.

A second means of accumulating the pool of money, perhaps more controversial (a special exception), is to grab the federal reserve by the neck and direct it to print an interest free fund of fiat money earmarked for education loans.

My supposings are that the federal reserve was set up to keep the government from printing its own currency, charging interest, and thereby preventing it from forming a bureaucratic collective, more powerful than the private sector.

The federal reserve interest also holds the government fiscally responsible, as a corporation, for expenditures beyond its ability to collect taxes from its citizens.

Hopefully the spiteful laughter about the national debt did not harm anyone.

IMO an ineptitude to form such a fund follows an assumption that the public does not collectively posess a single thing to keep itself afloat, and could not help itself even if it tried.

Either higher education is an important investment that should be made affordable by as many as possible, or it isn't.

Holler at me when we can do this with Social Security. Until then, there's no point in trying.

RightinNYC · 01-28-08, 03:23 PM

Quote:

Originally Posted by Hundebolg

College loans should be free of interest and higher education should be generally at no charge.

So who should pay for it? Why don't you think that people should pay for the social benefits they receive?

Quote:

College admission should only be decided on the student's merits and not on his parent's wealth.

Funny, cause that's exactly how it's decided now.

Admission at essentially every university in the US is completely need-blind. The only ways that income level can affect admissions are in the exceedingly rare cases of multi-million dollar donations or in the far more common cases of low-income students getting a diversity boost.

RightinNYC · 01-28-08, 03:25 PM

Quote:

Originally Posted by Tashah

Odyssey Scholarship Program

In 2007, an annonymous donor (Lester Crown) provided the University of Chicago with a $100M gift. Beginning in 2008, scholarships from this endowment will fund all or at least half of the tuition of low and moderate income students accepted by the university.

The University of Chicago: Odyssey Scholarships

And in addition to this, Harvard and Yale have taken another step toward becoming totally free. Now, students under a defined level (60-75k) get free tuition, while all other students are only expected to pay a maximum of 10% of their family income. Nobody is being prevented from attending these schools because of money.

Monk-Eye · 01-28-08, 03:47 PM

"Ways"

Quote:

Originally Posted by jallman

I would support at least attempting some of these ideas as long as we made it a criminal offense to default on a student loan that comes from that fund.

There are always administrative fees, include collections penalties if needed.
Reimbursement could be set a higher rate of return, it being absent actual interest.

Hundebolg · 01-28-08, 03:48 PM

Quote:

Originally Posted by RightinNYC

So who should pay for it? Why don't you think that people should pay for the social benefits they receive?

Because sound education is an asset to the economy as a whole as it encourages high productivity and innovation. College graduates will also pay more taxes .. why shouldn't the state give them free education ?

RightinNYC · 01-28-08, 03:54 PM

Quote:

Originally Posted by Hundebolg

Because sound education is an asset to the economy as a whole as it encourages high productivity and innovation. College graduates will also pay more taxes .. why shouldn't the state give them free education ?

Every child already receives approx $100,000 worth of education free of charge. Further, federal and state governments subsidize higher education to the tune of tens of billions of dollars each year. I don't see any reason why it needs to be more than that.

The outstanding strength of the US university system is derived from the fact that we have so many private universities that are not government-run or funded. I see no reason to change that.

Hundebolg · 01-28-08, 04:02 PM

Quote:

The outstanding strength of the US university system is derived from the fact that we have so many private universities that are not government-run or funded. I see no reason to change that.

I agree, private education isn't necessarily a bad thing, if it doesnt infringe on modern western values like the primacy of science over religion, for example. The US has good top universities, but the quality of lower-grade education and financing is often extremely variable. There still is much need for reform in the american educational system.

Monk-Eye · 01-28-08, 04:17 PM

"Wills"

Quote:

Originally Posted by Tashah

Odyssey Scholarship Program
In 2007, an annonymous donor (Lester Crown) provided the University of Chicago with a $100M gift. Beginning in 2008, scholarships from this endowment will fund all or at least half of the tuition of low and moderate income students accepted by the university.
The University of Chicago: Odyssey Scholarships

Universities that offer such scholarship are recruiting based on desireability factors.

Walking out of college with a highly competitive degree, and, without debt is an adorning gratuity.

Thankfully, and hopefully, there are persons interested in ensuring a legion of students for national mobility.

Eventhough, my hope is to address a more germane issue, which is an on average +32% interest burden.

Parents capable of paying for degree progams, in order to avoid the interest, likely, seldom see their money reimbursed, conscientiously choosing to enable their children with the greatest consolation.

A good faith, zero interest loan from a parent, would be one level of generosity below that.

Anyway, your post brings to mind a third teir of public endowment, which is to allocate the money through private contributions and manage the fund "privately".

The $100 million for scholarship is an excellent gesture, and necessary in many respects for national competitiveness.

Perhaps there is an optional treasury worthy of investing.

Maybe the government should apply the misgivings of the inheritence tax to a respectable future.

RightinNYC · 01-28-08, 04:21 PM

Quote:

Originally Posted by Hundebolg

I agree, private education isn't necessarily a bad thing, if it doesnt infringe on modern western values like the primacy of science over religion, for example.

If you knew much about higher education in the US, you'd know how hilarious that statement is.

Quote:

The US has good top universities, but the quality of lower-grade education and financing is often extremely variable.

Of course, as is the case all the world over. However, thanks to the US educational system, we're proud to have many top universities that are extremely low-cost (or in some cases, free) alternatives for any qualified students who desire them.

Quote:

There still is much need for reform in the american educational system.

Of course, but I doubt that it's needed more than any other comparable country.

RightinNYC · 01-28-08, 04:24 PM

Quote:

Originally Posted by Monk-Eye

"Wills"
Universities that offer such scholarship are recruiting based on desireability factors.

Walking out of college with a highly competitive degree, and, without debt is an adorning gratuity.

There are many, many, many good quality public and private universities that offer competitive diplomas for reasonable prices. It's all what you make of it.

Quote:

Eventhough, my hope is to address a more germane issue, which is an on average +32% interest burden.

How exactly do you get this number?

Quote:

Parents capable of paying for degree progams, in order to avoid the interest, likely, seldom see their money reimbursed, conscientiously choosing to enable their children with the greatest consolation.

A good faith, zero interest loan from a parent, would be one level of generosity below that.

Anyway, your post brings to mind a third teir of public endowment, which is to allocate the money through private contributions and manage the fund "privately".

The $100 million for scholarship is an excellent gesture, and necessary in many respects for national competitiveness.

Perhaps there is an optional treasury worthy of investing.

Maybe the government should apply the misgivings of the inheritence tax to a respectable future

This all sounds quite good to me. There are billions of private scholarships available each year, in addition to the tens of billions of financial aid handed out on top of that. The opportunities are out there, if students are willing to look for them.