View Poll Results: Are high student loan interest rates a form of tax on the middle class?

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Thread: Are high student loan interest rates a form of tax on the middle class?

  1. #231
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    ttwtt78640's Avatar
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    Re: Are high student loan interest rates a form of tax on the middle class?

    Quote Originally Posted by Ironfist View Post
    Actually I looked at those statistics again. You are wrong, the interest is included.
    Of course interest is included - if you default then you fail to pay both interest and principle and if you do not default then you do pay both interest and principle. What a default rate represents is how much is principle and interest is not recovered.
    “The reasonable man adapts himself to the world: the unreasonable one persists to adapt the world to himself.
    Therefore all progress depends on the unreasonable man.” ― George Bernard Shaw, Man and Superman

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    Re: Are high student loan interest rates a form of tax on the middle class?

    Quote Originally Posted by Ironfist View Post
    That you don't give a damn about the suffering of others is meaningless.
    You're engaging in opinion again with absolutely no facts to back your assertion. Like I said, if you want to engineer social policy there are better ways to do it than giving kids loans. The problem with giving them cheap or free money is it does nothing to reduce the cost of education. It only serves to drive the price higher for everyone.

    Quote Originally Posted by Ironfist View Post
    The reason that we have government is to ensure that people are not victimized by fools, under the influence of greed, who want to usurp all of the resources available to human society for their personal aggrandizement. It is not there to facilitate such idiots in their stupid endeavor. The purpose of the government making the loans should therefore be to facilitate education, nothing more. It should not be a money making scheme devised by people with the mentality of loan sharks to give an excuse to lower taxes for the wealthy.
    But how does increasing the cost of education facilitate it?
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  3. #233
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    Re: Are high student loan interest rates a form of tax on the middle class?

    Quote Originally Posted by Ironfist View Post
    You made a general statement concerning interest rates when you said no rate was too high if the borrower agreed to pay. That is a bogus bunch of baloney because if we take that as true then the ridiculous notion of someone agreeing to pay 1000 percent interest on a loan, because someone held a gun to his head and threatened to kill him if he didn't agree, would become acceptable. So your statement was bogus.
    Well, if someone is holding a gun to your head you're under duress and not really agreeing to pay it. No one, to my knowledge, is holding a gun to anyone's head to take out a student loan. So, in point of fact, your argument is a bunch of bogus baloney.
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  4. #234
    Why so serious?

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    Re: Are high student loan interest rates a form of tax on the middle class?

    Quote Originally Posted by Axe View Post
    It is not absolutely true, but it is generally true these days. Otherwise you will be stuck in some service job flipping burgers.
    Absolutely false. People that give a crap and have a minimal amount of ambition will find a way. Those that don't will just whine about the rich and demand $15 an hour to flip burgers.
    "I believe in a Spinoza's God who reveals himself in the harmony of all that exists, but not in a God who concerns himself with the fate and actions of human beings."

    --Albert Einstein, 1929

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    Re: Are high student loan interest rates a form of tax on the middle class?

    Quote Originally Posted by ttwtt78640 View Post
    Of course interest is included - if you default then you fail to pay both interest and principle and if you do not default then you do pay both interest and principle. What a default rate represents is how much is principle and interest is not recovered.
    No, I referred to recovery rates. The recovery rates of 90 percent and above include, contrary to your earlier assertion, interest.

  6. #236
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    Re: Are high student loan interest rates a form of tax on the middle class?

    Quote Originally Posted by Ironfist View Post
    No, I referred to recovery rates. The recovery rates of 90 percent and above include, contrary to your earlier assertion, interest.
    One last try - if you recover only $9 of every $10 lent then you are, in fact, losing money. Why is that hard to understand?
    “The reasonable man adapts himself to the world: the unreasonable one persists to adapt the world to himself.
    Therefore all progress depends on the unreasonable man.” ― George Bernard Shaw, Man and Superman

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    Re: Are high student loan interest rates a form of tax on the middle class?

    Quote Originally Posted by Ahlevah View Post
    You're engaging in opinion again with absolutely no facts to back your assertion.
    No, the fact is that you said if you are a lender all you care about is whether they repay the loan, REGARDLESS of coercion. IF THAT IS THE CASE, then you don't give a damn about the suffering of others. That is a fact.

    Quote Originally Posted by Ahlevah View Post
    But how does increasing the cost of education facilitate it?
    The practice of fractional reserve banking has resulted in higher prices across the board. How has it facilitating the purchase of them?

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    Re: Are high student loan interest rates a form of tax on the middle class?

    Quote Originally Posted by ttwtt78640 View Post
    One last try - if you recover only $9 of every $10 lent then you are, in fact, losing money. Why is that hard to understand?
    Why is it hard for you to understand that the overwhelming majority do not default? And that your statement is false. You lend the principle. The 90 percent is 90 percent of principle PLUS interest. Do you get it?

  9. #239
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    Re: Are high student loan interest rates a form of tax on the middle class?

    Quote Originally Posted by Ironfist View Post
    The government is not a private entity and it is good they are making the loans. What is not good is that they are trying to charge interest rates that are unnecessarily high. Because the government has resources at it disposal that far exceed the capabilities of private lenders, it can provide rates much lower than what private lenders are reasonably capable of. That is good because the government can thus facilitate the educational needs of citizens, while at the same time lowering their debt burden. The less debt that students have when they graduate, the more they can spend on consumption in the private sector which stimulates the economy.
    Again, since extending cheap credit does nothing to address the cost side any presumed benefit is illusory. It also results in a misallocation of resources as more of society's wealth is piled into higher education to dubious ends. I mean, even without free education we're turning out more liberals arts grads than we need simply because it's a less daunting academic track than fields with better prospects for employment, such as math, engineering, and science. Many of these students would probably be better served by learning a trade, but we've sold them on the idea that a college education is always the path to prosperity. It's not.
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    Re: Are high student loan interest rates a form of tax on the middle class?

    Quote Originally Posted by Ironfist View Post
    The recovery rate on the loans is an astounding 90 percent.



    want to do some simple math?

    lets use your 90% recovery rate for defaults

    lets use 25k as an average student loan

    lets use 6% as the rate the government charges

    for every one default....how many perfect loans does the government need on their books?

    now look at the total number of student loans outstanding.......

    now take your 90% recovery rate

    is the 6% rate covering the defaults? yes or no?
    “Most of the shadows of this life are caused by standing in one's own sunshine.”

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