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GOP Blocks Bill To Extend Low-Interest Student Loans

Tyler Durden's picture





 

While not exactly surprising, today's Senate failure to extend a bill extending the currently low interest on student loans, after a blocking vote by the GOP may bring even more attention to what Zero Hedge has dubbed one of the biggest bubbles of 2012.

From Reuters:

U.S. Senate Republicans on Tuesday blocked a White House-backed bill that would end a tax break for some private firms in order to fund an extension of low-interest rates for federal student loans.

 

Republicans prefer to cover the $6 billion cost of a one-year renewal of the 3.4 percent loan rate by taking money from Obama's healthcare overhaul. A compromise is expected. A deal must be reached by July 1 to prevent the loan rate from doubling for more than 7 million students.

 

The Senate vote was 52-45. Sixty yes votes were needed to move the legislation along.

That there will be politics involved in this touchy subject is not a secret. What, however, will hit the American (young) consumer class (and recidivist iGadget buyer) like a wall of bricks is if on July 1 there is still no deal, and the student protests seen in the recent past in London and Montreal spread to US campuses, where students demand the dignity to file for bankruptcy in peace... and full debt discharge. The counter of course will be whether anyone had put a gun to their head when they were taking out a loan. The counter to that counter will be that no students expected there would be zero jobs available upon graduation. And so on, in a tit for tat repeat of the housing bubble and the massive unexpected consequences as yet another $1 trillion bubble pops, which just like last time, will result in yet another broad taxpayer funded bailout, in which the all end up paying for the the few.

 


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Tue, 05/08/2012 - 13:13 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Debt Peonage.

Tue, 05/08/2012 - 13:33 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

 

Most college graduates in America cannot spell subsidize. 

 

 

U.S. Senate Republicans on Tuesday blocked a White House-backed bill that would end a tax break for some private firms in order to fund an extension of low-interest rates for federal student loans.

Remind me, please, which party has the majority in the Senate? 

That is right, the Democrats have the majority.

How do the minority Republicans block a White House-backed bill?

Fucking Reuters.

Tue, 05/08/2012 - 13:36 | Link to Comment Poetic injustice
Poetic injustice's picture

See, even mass media can't tell the difference between two parties? Is...there...any?

Tue, 05/08/2012 - 13:43 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Point missed.  The MSM are the ones fabricating and perpetuating the illusion of a "difference."  If it weren't for them, folks would see clearly that there is little difference behind the rhetoric.

Tue, 05/08/2012 - 13:49 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

I "misremember" my high school civics.  What is the 60 vote requirement?  Ahh yes, to overcome the delay tactic called a filibuster.   

Tue, 05/08/2012 - 13:51 | Link to Comment tarsubil
tarsubil's picture

No one actually has to talk. Mainly because it is all BS and a game.

Tue, 05/08/2012 - 13:55 | Link to Comment Cocomaan
Cocomaan's picture

This is a wee myopic. The filibuster could have been easily defeated with the Nuclear Option, but the Democrats never bothered to do that with their supermajority. 

Tue, 05/08/2012 - 14:00 | Link to Comment IBelieveInMagic
IBelieveInMagic's picture

yet another broad taxpayer funded bailout

Tyler, what are you smoking -- who is this mythical taxpayer that you keep referring to that is funding these bailouts? It's just cynical parasitical American financial hegemony that is being imposed knowing fully well that the rest of the world has to just suck it up or else it would be end of the world as we know it.

Tue, 05/08/2012 - 15:00 | Link to Comment Teflon1
Teflon1's picture

The rich will pay with their blood. The richest and most educated got us into this mess.

They can get us out.... or have the poor knawing on their childrens legs.

Tue, 05/08/2012 - 18:41 | Link to Comment Xkwisetly Paneful
Xkwisetly Paneful's picture

You must have a huge bill to pay! afterall half the world exists on the equivalent of $240/mo which makes you and a vast portion of the rest of the delusional zerobrains crowd amongst the rich.

Is that after they put down the krispy kremes and lattes?

Why is it that a per student per month in dollars difference is so difficult to find?

Could it be because it is somewhere between $7-$12 or the price of two krispy kremes and a latte?

Tue, 05/08/2012 - 14:12 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

"I see you have a PhD in Applied Mathematics with a Masters in Chemistry from MIT."

"Yes, and I graduated with honors."

"Very good.   You're hired.   Please see Mr. Jose Medina your supervisor at 8:00 am sharp tomorrow."

"Great!   Am I working french fries or shakes?"

Tue, 05/08/2012 - 14:20 | Link to Comment Silver Dreamer
Silver Dreamer's picture

This is Zero Hedge, right? Come on people! There's only one party, and it's the banksters.  Therefore, this news should not be surprising.

Tue, 05/08/2012 - 15:28 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

That doesn't matter.

That has always been so.

You still have to vote to minimize damage.

Tue, 05/08/2012 - 15:27 | Link to Comment A Nanny Moose
A Nanny Moose's picture

Conflict creates drama. Drama sells. Their jobs is to increase shareholder value, is it not?

Tue, 05/08/2012 - 15:44 | Link to Comment Arnold Ziffel
Arnold Ziffel's picture

"You mean I have to pay this sh*t back?!...WTF??!!??"

That's my neighbor's son in utter disbelief when I told him the fact you cannot, "just walk away" from student loans like his dad did from their mortgage. I feel sorry for him...not sure how he can repay $76K working as an 'art historian.'

On second thought, when I think of how much he partied for five years....not too sorry after all.

Tue, 05/08/2012 - 15:58 | Link to Comment blunderdog
blunderdog's picture

Why do you think it matters, though?

Can't collect money that isn't there.  Have they started garnishing unemployment benefits and foodstamps yet?

The neighbor's son sounds like an idiot, but it's not HIS money.  He can't lose.

Tue, 05/08/2012 - 21:26 | Link to Comment GoodMorningMr.V...
GoodMorningMr.VanRumpoy...'s picture

 Worse interest capitalizes daily on these bad boyz. This isn't a home mortgage. You fall behind, and your 50,000 loan in principal can balloon seven figures and like herpes never leaves you. A slave for life.

Tue, 05/08/2012 - 13:39 | Link to Comment tarsubil
tarsubil's picture

Nevermind.

Tue, 05/08/2012 - 13:45 | Link to Comment Liposuction
Liposuction's picture

http://www.nationaljournal.com//domesticpolicy/senate-blocks-interest-ra...

Senate Blocks Interest-Rate Freeze on Federal Student Loans

Lulz.  Who owns the Senate? 

Next up: ECB Clears Roadblocks to new QE, FED saves puppy from drowning.

Tue, 05/08/2012 - 13:46 | Link to Comment machineh
machineh's picture

'How do the minority Republicans block a White House-backed bill?'

Answer: most college graduates don't know what 'cloture' is either.

AH HA HA HAHHHHHHH ....

Tue, 05/08/2012 - 13:54 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

This would be closer to the truth, don't you think?

...on Tuesday blocked delayed a White House-backed bill

I am sure it was an entirely unintentional oversight by an innocent journalist.

Tue, 05/08/2012 - 14:11 | Link to Comment pods
pods's picture

Well, I know what cloture is, but I still chuckle whenever I hear it cause it just sounds dirty.

Cloture.

Kind of like the time I once gave a chick Plumeria for Christmas.

"You gave her WHAT!?"

pods

Tue, 05/08/2012 - 13:46 | Link to Comment Henry Chinaski
Henry Chinaski's picture

GOP and Senate Democrat Majority Leader Harry Reid Block Bill To Extend Low-Interest Student Loans

fixed it

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm...

Tue, 05/08/2012 - 13:55 | Link to Comment Cocomaan
Cocomaan's picture

Good research, this is interesting. 

Tue, 05/08/2012 - 14:25 | Link to Comment roadhazard
roadhazard's picture

 In the bill sent from the House Repubicans had inserted draconian cuts to womens health care among other things unacceptable to democraps.

Tue, 05/08/2012 - 14:55 | Link to Comment financial apoca...
financial apocalyptic contagion's picture

haha good work Chinaski

wtf why would the leader of the Donkeys not support his party's bill. only in America

Tue, 05/08/2012 - 13:54 | Link to Comment mathdock
mathdock's picture

60 votes needed in the Senate to prevent a so-called filibuster.  They call it a cloture vote now, but principal is the same.

Tue, 05/08/2012 - 14:21 | Link to Comment roadhazard
roadhazard's picture

It takes 60 votes to pass a bill. Democraps do not and have not had that many since they took the "majority" in the Senate. Being in the Majority means nothing unless you have 60 votes. That is why legislation goes nowhere in the Senate.

 

edit: Didn't see mathdock's post, so solly.

Tue, 05/08/2012 - 15:37 | Link to Comment SDShack
SDShack's picture

Do you even know how many times in the last 50 years one party has had 60+ votes in the Senate? Here is the answer, only during the JFK/LBJ and Carter years, plus 2008-2010... all run by democrats. Outside of JFK, these were all terrible times for the country. But what I really want to know is how did any bills get passed in all those other years if, according to you, it takes "60 votes" to pass legislation. How did Nixon, Ford, Reagan, Clinton, Bush Sr, and Bush Jr. all get bills passed without 60 votes?

Tue, 05/08/2012 - 19:26 | Link to Comment roadhazard
roadhazard's picture

Simple, you don't need sixty votes if you allow filibustering.

Tue, 05/08/2012 - 18:06 | Link to Comment Augustus
Augustus's picture

Sure the Dems had 60 votes in the Senate for OBummer's first two years.  That is why it became important for them to steal the seat for Al Franken.

Tue, 05/08/2012 - 19:30 | Link to Comment roadhazard
roadhazard's picture

You are assuming that Democraps are like there repubican lemming counterparts and vote as a block.

Tue, 05/08/2012 - 15:25 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

There is always Reconciliation to move the bill past the block, but that would not get the headlines desired.

None of it matters.  They will all go on disability regardless.

Tue, 05/08/2012 - 13:25 | Link to Comment Clueless Economist
Clueless Economist's picture

I'm looking forward to Maria Bartoromo purring through her sensous lips and Botox-Ravaged face, "Stocks down today across the board, but well off their lows of the day"

 

Tue, 05/08/2012 - 13:30 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

"I got a degree in Basket Design & now I want someone else 2 pay 4 it so I can lead a productive life."

 

Tue, 05/08/2012 - 13:38 | Link to Comment Poetic injustice
Poetic injustice's picture

If you refuse to pay, I'll go on disability money next week!

Tue, 05/08/2012 - 13:47 | Link to Comment machineh
machineh's picture

... after being diagnosed as a 'terminal basket case.'

Tue, 05/08/2012 - 14:05 | Link to Comment NemoDeNovo
NemoDeNovo's picture

ROFLMAO "Terminal Basket Case" - Now that's Funny!!!!!

Tue, 05/08/2012 - 21:55 | Link to Comment HungrySeagull
HungrySeagull's picture

Start weaving, you got a long way to go for your own bucket list.

Tue, 05/08/2012 - 15:46 | Link to Comment Arnold Ziffel
Arnold Ziffel's picture

Lugubriously Droll humor...if I may say so.

Tue, 05/08/2012 - 14:34 | Link to Comment krispkritter
krispkritter's picture

Pardon the source and know that I do not like Hannity, but if this guy is not a plant then it's pretty obvious there is a generation that wants everything on a silver platter. If I were in a room with this guy and he started pouting about his 'plight' I'd have to leave or kick his ass...

http://www.mediaite.com/tv/hannity-destroys-occupy-wall-st-organizer-in-fiery-segment-about-movements-violence/

Tue, 05/08/2012 - 18:08 | Link to Comment Augustus
Augustus's picture

Hannity later offered the guy a job.

The goy told him that he would not take a job for lesss than $80,000 to $100,000 a year.

Until he gets that, I guess he will continue to take the food away from someone's child.

Tue, 05/08/2012 - 13:56 | Link to Comment aerojet
aerojet's picture

Someone downvoted you, but honestly, what else can you call it when they make the loans more available but also raise the price of tuition, fees, books, and room & board?  It would be one thing if colleges and universities held the line on cost, but instead, they are taking students for the proverbial ride--come to college, oh but, lube your ass up first!

 

 

Wed, 05/09/2012 - 02:41 | Link to Comment Breaker
Breaker's picture

The principal effect of the huge expansion of student loans is a massive subsidy from the taxpaying class to the academic class. More precisely, to the administrators and to the profs in marginal majors (serious majors like engineering would be doing OK without them). 

The students are just politically sympathetic carriers of the subsidy. I understand they took the loans voluntarily and many of them wasted the time spent in college with the loans. And there should be some penalty associated with that. But they were young and were pawns in a gigantic subsidy scheme. I have a hard time with keeping them in debt peonage for 30 years for being stupid enough to fall for their role in the subsidy scheme.

OTOH, I have real problems with fixing the problem of too many student loans by continuing to hand them out like candy. Raising the interest rate would be one small step in the right direction. Terminating the program entirely would be an even better idea.

Tue, 05/08/2012 - 13:14 | Link to Comment Mae Kadoodie
Mae Kadoodie's picture

How will I pay for my Ipad?

Tue, 05/08/2012 - 13:14 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Wait! Was that a blip in the Matrix?

Must have been a black cat. Something has been changed.

http://www.youtube.com/watch?v=z_KmNZNT5xw

Damn! Deja vu all over again.

Tue, 05/08/2012 - 13:14 | Link to Comment carbonmutant
carbonmutant's picture

WH spin due in 5...4...3...2...1

Tue, 05/08/2012 - 13:24 | Link to Comment macholatte
macholatte's picture

 

 


I may not know much, but I know the difference between chicken shit and chicken salad.
-- Lyndon B Johnson  

http://gunsnplanes.blogspot.co.nz/2011/05/difference-between-chicken-salad-and.html
Tue, 05/08/2012 - 13:34 | Link to Comment Manthong
Manthong's picture

Speaking of chicken poop.. A little something to warm the cockroaches of the Nobel committee’s hearts:

http://online.wsj.com/article/SB10001424052702304868004577378421787264242.html

Tue, 05/08/2012 - 13:56 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

"As parents, note that this program prepares the student for dealing with other heavy debt in real life."

Student Loan Officer

 

Tue, 05/08/2012 - 13:56 | Link to Comment aerojet
aerojet's picture

Bring a gun to the negotiations.

Tue, 05/08/2012 - 13:14 | Link to Comment l1b3rty
l1b3rty's picture

Student loans are an excellent example of how the modern lending system manifests ancient modes of control. In the United States, long before the modern student loan, for the promise of prosperity thousands of individuals came to the New World as indentured servants. Once they arrived in ‘America,’ ‘twas their job to work to pay off their sail across the pond, an endeavor which lasted years and a decision most young men did not make for themselves. Instead, their fathers worked out the terms and signed the legal papers, handing custodianship of son over to ship captain. Sound familiar?

In the last decade, as student loan debt increased, so too did the price of silver. Both trends are poised to continue over the medium term. (5 years+)

http://silvervigilante.com

Tue, 05/08/2012 - 13:19 | Link to Comment haskelslocal
haskelslocal's picture

Sound like Chinese human cargo to me. Or Mexican ponga boats and fence jumpers. Everyone's got a jackle to payoff.

Tue, 05/08/2012 - 14:09 | Link to Comment Temporalist
Temporalist's picture

Jackal?

Tue, 05/08/2012 - 13:58 | Link to Comment aerojet
aerojet's picture

My ancestors came to what is now the US, 13 generations ago, by that very means.  They worked making tar for ships to pay off their voyage and it was damn hard.  The thing is, after a just a few years, they were able to leave the plantation and start up farms of their own and take ownership of their lives.  The modern debt system asks far too much for far too little!

Tue, 05/08/2012 - 14:01 | Link to Comment AnAnonymous
AnAnonymous's picture

Nowadays, generous and solvent sponsors as the Indians were are hard to come.

That is the big difference.

Tue, 05/08/2012 - 16:59 | Link to Comment Matt
Matt's picture

The difference is USERY. If the indentured servants had to pay compounding interest on the cost of the transAtlantic voyage, they would have ended up as slaves.

Wed, 05/09/2012 - 03:59 | Link to Comment Sokhmate
Sokhmate's picture

usury.

Tue, 05/08/2012 - 13:16 | Link to Comment Cortez the Killer
Cortez the Killer's picture

Little cocksuckers

pay your damn bills

Tue, 05/08/2012 - 13:21 | Link to Comment nyse
nyse's picture

Clearly born before 1980.

Tue, 05/08/2012 - 13:34 | Link to Comment Liposuction
Liposuction's picture

Ad hominem.

Pay back your shit.

Tue, 05/08/2012 - 16:04 | Link to Comment Liposuction
Liposuction's picture

Haters gonna hate.  Don't get emo about your own refusal to live within your means.  Pay back your shit.  Just because you want something doesn't make it affordable.

How many of you assholes carrying student loans looking for a "free low interest rate courtesy of big gov" also have:

- more than 5 channels on your big ass TV

- a data plan

- anything from woot.com

- more than basic coverage on your > $10k car (leased/financed or otherwise)

- never use coupons except for buy-one-get-one "fatten my ass up" fast food

- all the latest hipster clothes and gadgets

Fuck you very much.  Pay back your shit first.  Then buy other shit.

Tue, 05/08/2012 - 14:10 | Link to Comment barroter
barroter's picture

pay your DOUBLED interest rates suckers! The rich who OWN these loans would enjoy this.

Tue, 05/08/2012 - 13:16 | Link to Comment homersimpson
homersimpson's picture

Millions of voices cried out in terror and were suddenly silenced... and immediately afterwards the sound of baristas pouring coffee resumed thanks to their worthless and overly expensive liberal arts degree.

Tue, 05/08/2012 - 13:18 | Link to Comment haskelslocal
haskelslocal's picture

When a promise hangs in your face and you're 17 years old, you've got no idea what the other side of graduation looks like. Kids don't choose Liberal Arts degrees to purposefully fail. Wake up child.

Tue, 05/08/2012 - 13:22 | Link to Comment Cortez the Killer
Cortez the Killer's picture

the laws of supply and demand require a liberal arts major to grab a broom and start sweeping out his parents' neighbors' garages.

Tue, 05/08/2012 - 13:26 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

What "promise"?  That one has a "right" to a job if one endures four years of higher education?

Tue, 05/08/2012 - 13:57 | Link to Comment Cocomaan
Cocomaan's picture

These kids aren't even of legal age. They aren't allowed to join the army. They are, however, allowed to have quite a lot of money lent to them. Do you see a problem with that?

Tue, 05/08/2012 - 14:02 | Link to Comment mayhem_korner
mayhem_korner's picture

"allowed"

 

So you don't think the co-signer to loans given to students with no income or credit history means anything?  Or do Mom & Dad think they're signing corporate holiday cards?

Tue, 05/08/2012 - 14:03 | Link to Comment Cocomaan
Cocomaan's picture

Of course it does, and in fact, what you point out makes the situation even worse for the kid. The kind of debt the lending industry and boomer-age morons are pushing these kids into is downright criminal, but we blame the kid. More importantly, we make the kid responsible for all the consequences. 

Tue, 05/08/2012 - 14:07 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

I'm sorry.  I didn't realize you were from the planet Victim.

Tue, 05/08/2012 - 14:18 | Link to Comment Temporalist
Temporalist's picture

When I was in high school I learned that the minumum age to sign a contract was 18.  Even if it were 17, 16, 15 I still understood what a contract was.  Also, I got my first credit card in the first year of college.  I never used it unless necesary.

It is not very hard to understand that if you borrow money you have to pay it back and the more you borrow the more the total amount after interest.

The same excuses are being made for mortgage owners who "didn't know" that things that are too good to be true usually are.

All parties are to blame.  Lenders deserve to lose out on defaulted loans when that happens and students are contracted to have to pay it off.

The reason they made the loans non-dischargeable was because people were going to school, declaring bankruptcy, then going back to school again.  I know of people that did this.  I don't agree with either side but obviously the lenders felt they needed protection.

Any student that thinks their loans should be forgiven are indiciative of what the US has become.

United States of Bailouts

Tue, 05/08/2012 - 14:20 | Link to Comment Cocomaan
Cocomaan's picture

When you're talking about a kid, yes, I'd call them a victim of a scam. The parents are at fault, the kid is certainly not. 

Tue, 05/08/2012 - 14:27 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

So should I pay my taxes directly to you and bypass the gov't?  Jus let me know the address of your local Western Union...

Tue, 05/08/2012 - 15:47 | Link to Comment SDShack
SDShack's picture

So when do you think a kid become an adult? 18, 19, 21? Or maybe 26 since 0bamacare allows parents to carry kids on their insurance until 26? If a person hasn't figured out what a contract, credit, and interest is by 18, then that is an indictment of our education system and parents. There always is a time for everyone to grow up and be an adult. Usually it happens because we make a mistake and learn from it. In your world, it seems everyone is a victim. No wonder we have bailouts to infinity and beyond.

Tue, 05/08/2012 - 17:06 | Link to Comment Matt
Matt's picture

How about we lend the kid $500 unsecured with 20% interest first, and if they pay it back, then lend them $100,000 for tuition?

I suspect the education system doesn't do a lot to teach people to save money, or teach the importance of the exponential function. Once they started offering alternatives to Mathematics as a requirement to graduate, that probably marked the start of the decline.

Tue, 05/08/2012 - 15:50 | Link to Comment SDShack
SDShack's picture

double post

Tue, 05/08/2012 - 13:37 | Link to Comment homersimpson
homersimpson's picture

Of course peeps don't take libbie arts degrees to purposely fail - but they'll take them because it's easier to obtain than a math/finance/engineering one.

Hmm... when I was 17, I realized:

* The only guarantees in life were death and taxes

* I knew that engineering/business/medical degrees made more money than liberal arts degrees

* It's hard to make a living off what people consider hobbies, such as liberal arts

* The harder the degree, the more likely you'll make more money than one that wasn't as hard to obtain

You wake up, child. It's not my fault a lot of American kids wanted to take the easier road out and not study math-related or medical-related fields. It doesn't take a brain surgeon to realize it's hard to make money off of disciplines that are considered hobbies (e.g. - liberal arts).

The fact that many 18 year olds took out 100k loans for worthless degrees is NOT my fault or anyone else's... except the one who took the loan to pay for the libbie art degree in the first place.

So - explain to me again why I should bail out these baristas?

Tue, 05/08/2012 - 13:40 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Well played b*tch-slap, Homer.  Didn't know ya had it in ya.

Tue, 05/08/2012 - 14:00 | Link to Comment Sauk Leader
Sauk Leader's picture

You all make great points, the media and campaigns will talk all about the loans, and loan relief. Yet they will not talk about why college is so expensive for what you actually get out of it. It is so high most people dont have a choice to pay thier own way anymore with out loans. I fucking had chinese TA's who couldnt pronounce Problems! "Probrems!". I took a psych class over the summer and the prof was there literally the first ten minutes of the first class dressed like he was going to the tennis club. His bitch TA assigned quizes from the textbook. States are funneling less money into college tuitions and more into the Union coffers. Cut professor salaries to reflect the amount of work they actually do.

Wed, 05/09/2012 - 02:45 | Link to Comment Breaker
Breaker's picture

College is expensive in large part BECAUSE of the student loan program. Demand increases faster than supply. The suppliers can raise the price. And they have raised it with vengeance.

Tue, 05/08/2012 - 16:09 | Link to Comment SDShack
SDShack's picture

Exactly right Homer. At 18 I made a choice. I considered biology/wildlife management, law enforcement, and engineering as potential college majors. I chose engineering for the simple reason that it paid more and there was always a demand for engineers. I could only afford a local college, lived at home, and worked part time to pay for college. I never got any financial support from my family other than living at home. I had student loans at about 4% interest I think. I got my engineering degree in 5 years, which was about normal for engineers. 3 months after graduation, I got a supervisor job in a local manufacturing plant. In 10 years I was a corporate quality manager, and in 15 years I was a regional manufacturing manager. My loans were paid off in 10 years according to schedule. I made the right choice and have been blessed because of it. I expect others to do the same and not play the victim card all the time and expect a bailout from me.

Tue, 05/08/2012 - 17:01 | Link to Comment Cortez the Killer
Cortez the Killer's picture

with 300 men like you I conquered the mighty aztec empire

Tue, 05/08/2012 - 19:06 | Link to Comment Moe Howard
Moe Howard's picture

Don't foget how few you sent to Guatemala to take over.

Wed, 05/09/2012 - 02:56 | Link to Comment John_Coltrane
John_Coltrane's picture

Yes, its really quite simple:  if you want to make a lot of money you must make yourself useful to the largest group of people possible. 

Tue, 05/08/2012 - 13:51 | Link to Comment DOT
DOT's picture

" Kids don't choose Liberal Arts degrees to purposefully fail."

 

 

Yes, they do actually.

Mommy and Daddy have hovered and coddled for years but most of all protected little johnny from the stigma of "Failure". Since there is no downside choosing to waste four years just screwing around. The exclamation, "You Fail!", is a comic reparte not a harsh reality.

 

 

 

 

Tue, 05/08/2012 - 13:54 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Where I used to live, they instructed the 5-year olds to "not keep score" in soccer matches (presumably so nobody would "lose").  Of course, as soon as a goal was scored, the scoring team cart-wheeled back to the kickoff, screaming ONE TO NOTHING! at the top of their lungs.

Protecting kids from the notion of winners/losers and other realities just breeds apathy.  And there's a whole generation of apathy spouting out about what they "deserve."

Tue, 05/08/2012 - 14:08 | Link to Comment Joeman34
Joeman34's picture

The notion to which you’re actually referring, ‘political correctness’, is one of the few root causes of what is so wrong with America today.  I would call it 'hyper-political correctness' and submit it's close-to as dangerous as current fiscal/monetary policies.   

Tue, 05/08/2012 - 15:58 | Link to Comment LFMayor
LFMayor's picture

+100

Take the dodge balls out of the schools and you'll take the balls off the next generation.

they have never learned that life is as hard as the ground on which they walk, because they haven't been allowed to fall.  That's why God starts you off down low, so you'll build callouses without killing yourself.

Tue, 05/08/2012 - 13:16 | Link to Comment haskelslocal
haskelslocal's picture

Are bank borrowing rates not at near ZERO?  3% or 6% interest still provides a profit. Claiming that low rates cost the U.S. tax payer is CROCK. Make adjustments banks. Forgive as you've been forgiven.  

Tue, 05/08/2012 - 13:24 | Link to Comment TheAntiBen
TheAntiBen's picture

Seriously?  You've got to be kidding me.  So low interest rates, which do NOT promote saving but actually promote spending, didn't cost the U.S. Tax payer money?  Then why did I help to bail out GM?  Was it because the interest rates weren't low enough for EVERYONE to own a GM vehicle instead of paying their mortgage?

Tue, 05/08/2012 - 13:30 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Banks aren't borrowing...they are covering up.  The borrowing took place long ago.  The game now is to continually paper over to defer the arrival of insolvency.

Tue, 05/08/2012 - 13:49 | Link to Comment greensnacks
greensnacks's picture

It's too bad the senate cannot block the feds ZIRP.

Tue, 05/08/2012 - 14:10 | Link to Comment Joeman34
Joeman34's picture

Someone needs to read-up on monetary policy theory...

Tue, 05/08/2012 - 13:17 | Link to Comment lolmao500
lolmao500's picture

Bullish for the banks!

Tue, 05/08/2012 - 13:17 | Link to Comment Lost Wages
Lost Wages's picture

Republicans want to make sure even fewer young people vote for them this year than usual.

Tue, 05/08/2012 - 13:18 | Link to Comment RacerX
RacerX's picture

It would be interesting to see all the "special resolutions" (ie: Pork) attached to the loan bill. Too bad our press doesn't dig deeper.

Tue, 05/08/2012 - 13:27 | Link to Comment Henry Chinaski
Henry Chinaski's picture

Obama needs to kick ass and put it to those goddam do nothing republicans on this one. [/sarc]

...along with his faithful ally, Senate majority leader democrat, Harry Reid (who voted with the republicans).

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm...

Wake up and smell the fucking spin.

The vote was Bipartisan bitchez!

Tue, 05/08/2012 - 13:33 | Link to Comment Benjamin Glutton
Benjamin Glutton's picture

quirky parliamentary procedure allows Majority leader to bring the Bill back to the Senate floor when he is on the NAY side.

Tue, 05/08/2012 - 13:56 | Link to Comment DOT
DOT's picture

You don't need to be in the leadership to move to reconsider, you just need votes.

The Majority Leader generally can introduce just about any thing at any time.

Remember all those Holiday Season votes ?   

Tue, 05/08/2012 - 13:39 | Link to Comment homersimpson
homersimpson's picture

Well if the "young people" were clueless enough to vote for Barack in 08, then why would the GOP bother to deal with them to begin with? These same people burdened in debt are most likely Barack voters anyways...

Tue, 05/08/2012 - 14:40 | Link to Comment haskelslocal
haskelslocal's picture

Chump. Are you selling the two choice theory? As if Palin and the old man were a better choice. If you believe what you say, then THERE WAS NO CHOICE.

Tue, 05/08/2012 - 14:11 | Link to Comment barroter
barroter's picture

They're doing a great job of it..alienating the youth. I guess Mitt can explain to them why their interest rates doubled.

Tue, 05/08/2012 - 14:37 | Link to Comment haskelslocal
haskelslocal's picture

The game within the game. There's no way Elephant think tanks didn't run the probabilities of such a decision. However, I think republicans have a forgone conclusion that the youth are lost to Obama anyhow so they might as well force the pain back towards those who give no vote and save the benefits for those they can count on. Except, what about the parents funding their children even with student loans? Certainly risky.

Tue, 05/08/2012 - 13:18 | Link to Comment IMA5U
IMA5U's picture

the youth is learning that if they dont want to pay their debts back...

 

they can simply protest and reneg on the terms

 

that's a great way of doing business.  thank you obama for teaching america this is the way to do binza55.

Tue, 05/08/2012 - 13:21 | Link to Comment Bazinga
Bazinga's picture

Actually, commercial real estate has been playing this game for years...without having to protest!

This mode of behavior has always been acceptable for businesses. Let's give BO credit where credit is due. He doesn't get credit for this one. 

Tue, 05/08/2012 - 13:24 | Link to Comment LawsofPhysics
LawsofPhysics's picture

You mean like the management and shareholders of GM, AIG, and every other PRIVATE mother fucking company that has ever recieved a BAILOUT?

Oh, that's not what you meant?  Go fuck yourself.  Make the management and the damn shareholders pay creditors back (especially when the creditor is the taxpayer) with their own PRIVATE wealth the next time a company goes belly-up.

Another good sheep that still believes the two-party lie, fucking moron.

The "youth" will be eating you for dinner shortly.

Tue, 05/08/2012 - 13:32 | Link to Comment Augustus
Augustus's picture

The GAO has reported that the govt. will likely make a $15 Billion profit on the AIG deal where they confiscated the company.

The GM deal was simply a Unionista sop where Obummer again stole the capital of private investors to give to his supporters.

The deal with student loans will have nothing to do with current student loans.  Those rates are set.  The arguments are about the rates for NEW student loans.

The "youth" who won't pay their bills and prefer to camp out in the park rather than work can suck my hairy balls.

Tue, 05/08/2012 - 13:41 | Link to Comment LawsofPhysics
LawsofPhysics's picture

"profit" with paper devalued by how much?  Yeah, I can't think of any better use of capital.  Thanks for pointing out what capital misallocation and malinvestment looks like in fascist Amerika.

Don't worry about the youth who won't pay their bills, like everyone else, they will get theirs.  FYI-I'd rather have them camping in a park so that I can hire my own "ball washer" than groping my kids and grandmother before I board a plane.  Think about it, you'll get it, maybe.

http://www.youtube.com/watch?v=5T8Gxk7vbec

Free fucking market, bitchez.

Tue, 05/08/2012 - 13:47 | Link to Comment Navigator
Navigator's picture

 

<<<The GM deal was simply a Unionista sop where Obummer again stole the capital of private investors to give to his supporters.>>>

Hhhmmm...Actually, on December 19, 2008 President Bush approved a bailout plan and GAVE his crony capitalist buddies at General Motors and Chrysler $13.4 billion in financing from TARP (Troubled Assets Relief Program) funds, as well as $4 billion to be "withdrawn later"


Tue, 05/08/2012 - 14:09 | Link to Comment DOT
DOT's picture

So, that means I can sell these bonds ?

 

I think you have mistaken the destruction of contract law as a partisan event.

Tue, 05/08/2012 - 15:37 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

My recall is the Bush people decided the US should retain a car industry and vectored money to GM in the form of a loan.

It was the incoming Administration that orchestrated loss of money by bondholders who had, in good faith, loaned money to GM.  This was done in order to provide unions with seats on the board and cash payments to union members and the union political campaign donation budget.

These are not equivalent acts.

Tue, 05/08/2012 - 18:20 | Link to Comment Augustus
Augustus's picture

Bush signed the Legislation that was DRAFTED and WRITTEN by the DEMOCRAT majorities in the House and Senate.  It included some funding to keep the auto companies alive.  It was OBummer who greatly increased the funding and installed his Czar, Steven Ratfink, to be incharge of stealing the companies.  Ratfink later paid a $6,000,000 settlement fee to the NY Attorney General to get out of charges of stealing from the NY Pension funds.  He knew the drill for pillaging a private company and OBummer gladly turned him loose.

If you are going to try to play the Blame it on Bush game, You should at least try to get the entire story first.

Tue, 05/08/2012 - 14:03 | Link to Comment FlyoverCountryS...
FlyoverCountrySchmuck's picture

If you have a degree in Hispanic Gay and Lesbian Studies, and $90G's in College debt, YOU MIGHT BE AN OCCUTARD

Tue, 05/08/2012 - 13:45 | Link to Comment Joe The Plumber
Joe The Plumber's picture

Moral equivalency does not make it right

Tue, 05/08/2012 - 13:54 | Link to Comment LawsofPhysics
LawsofPhysics's picture

The laws of Nature don't give a shit.

Tue, 05/08/2012 - 13:37 | Link to Comment mayhem_korner
mayhem_korner's picture

the youth is learning that if they dont want to pay their debts back... they can simply protest and reneg on the terms

 

No - that's what the youth have been taught.  What they're learning is the difference between what they've been taught and reality.

Tue, 05/08/2012 - 13:19 | Link to Comment junkyardjack
junkyardjack's picture

Oops I shouldn't have taken out a little extra to update my wardrobe...

Tue, 05/08/2012 - 13:20 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

"The needs of the many outweigh the needs of the few......or the one."

 

-Spock

Tue, 05/08/2012 - 14:11 | Link to Comment DOT
DOT's picture

That pretty much describes our current National Budget and Tax Structure.

Tue, 05/08/2012 - 14:29 | Link to Comment Temporalist
Temporalist's picture

"There's never just one cockroach."

 

Tue, 05/08/2012 - 13:20 | Link to Comment docj
docj's picture

So here's the problem with all this - we (rightly) criticize as whores the pols who do nothing more than promise endless free stuff to the debt slaves, I mean voters. Yet, when someone says "no more free lunch", even in this case where the difference for the average loan comes out to something like, I think, $10/month in payments, then it's all about those whore politicians sticking it to "the little guy".

Or is the simple axiom that "all politicians suck - always"? That I could support.

Tue, 05/08/2012 - 13:27 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Come on now, you know damn well it depends on who's pocket that ten dollars is coming from and going into.

Tue, 05/08/2012 - 13:30 | Link to Comment docj
docj's picture

Sure do. Two pockets, actually. Big Bank & Big College.

I'm not a fan of either.

Tue, 05/08/2012 - 13:21 | Link to Comment mckee
mckee's picture

I have $90k of debt for a degree in neo-socialism. I have metal spikes in my face, saucers in my ear and smell like a jock strap shared by an entrie rugby team. It's not my fault I can't find a job!!!

Tue, 05/08/2012 - 13:24 | Link to Comment RacerX
RacerX's picture

Yes, but you are uniquely prepared for the upcoming apocolypse.

Tue, 05/08/2012 - 14:31 | Link to Comment Temporalist
Temporalist's picture

Try patchouli oil.  It can mask your smell because it stinks worse than everything else it is near.

Tue, 05/08/2012 - 14:08 | Link to Comment WillyGroper
WillyGroper's picture

You're too funny. Thanks, made my day!

Tue, 05/08/2012 - 14:15 | Link to Comment Bob Sacamano
Bob Sacamano's picture

But that has nothing to do with your responsibility to pay back the loan.  It is what you said you would do.  Repayment was not conditional on any events taking place or not taking place, except you signing the loan documents and taking the money.   I know -- it is someone else's fault........personal responsibility no matter what happens is not in vogue.

Tue, 05/08/2012 - 14:23 | Link to Comment mckee
mckee's picture

?

Tue, 05/08/2012 - 16:28 | Link to Comment blunderdog
blunderdog's picture

What, that kid scares you so much you have to go online to talk trash about him?

Don't be a pussy.  Be a tough guy and go tell him to get a haircut and a job.

Tue, 05/08/2012 - 13:22 | Link to Comment Marc45
Marc45's picture

When I finished college many, many years ago, I paid off my student loans over several years.  Yes, it was painful and the rates were much higher than today but I learned a valuable lesson in responsibility for my own decisions and my own life.  As my pop always said, "Son, your parents are probably the only people in the world who will give you something and not expect anything in return".  I don't have money problems now.  Thanks Dad!

Tue, 05/08/2012 - 13:29 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Likewise.  Moreover, my father's "education" went something like "Happy birthday, now that you are eighteen, did you make sure to register?  Great, now get out."

Tue, 05/08/2012 - 14:16 | Link to Comment Joeman34
Joeman34's picture

Ha, now it makes sense!  You write like you have some pent-up frustrations.  Daddy didn't love you enough...

Tue, 05/08/2012 - 13:24 | Link to Comment navy62802
navy62802's picture

Too little too late. Bubble fully inflated.

Tue, 05/08/2012 - 13:29 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

There's always room for another bubble.

Right? RIGHT? RIGHT?

Tue, 05/08/2012 - 13:39 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Just one more - the giganticus, bubble-inside-a-bubble: the USD/UST. 

End of story.

Tue, 05/08/2012 - 14:45 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Oh good. Then do we get to start all over again?

Tue, 05/08/2012 - 13:28 | Link to Comment carbonmutant
carbonmutant's picture

 Student loan Debt Clock...

http://www.finaid.org/loans/studentloandebtclock.phtml

Total student loan debt exceeds total credit card debt..

Tue, 05/08/2012 - 13:27 | Link to Comment Bear
Bear's picture

With second term for Obama no one pays ... Only US

Tue, 05/08/2012 - 13:28 | Link to Comment Let The Wurlitz...
Let The Wurlitzer Play's picture

They should pay for the difference in cost by cutting the pay, benefits and tenure of the lazy professors and administrators of these fine "institutions".

 

Tue, 05/08/2012 - 13:56 | Link to Comment LawsofPhysics
LawsofPhysics's picture

I wish some of these nobel laureates would be more lazy and just shut the fuck up.  Paging Krugman...

Tue, 05/08/2012 - 13:28 | Link to Comment PaperBear
PaperBear's picture

So a student loan cannot be discharged in bankruptcy and while there isn’t a job for the debtor are the repayments deferred or does a defaulting debtor get told their student debt stays in place and a jail will be their residence for the foreseeable future perhaps even after repayments resume ?

Tue, 05/08/2012 - 13:37 | Link to Comment Augustus
Augustus's picture

They can give back the education. 

What the heck did any student expect to happen when they borrowed $50,000 and spent it on five years of lousey livingod beer and good women, while majoring in goth films studies?  Now it is time to pay it back.

Tue, 05/08/2012 - 13:47 | Link to Comment docj
docj's picture

Actually, I could almost support that. Sort of like a money-back guarantee. You can get "forgiveness" on your loans but you have to surrender your degree and you can't claim ever having earned it. I have no idea how you could possibly enforce that, but it may have some merit.

Tue, 05/08/2012 - 14:24 | Link to Comment DOT
DOT's picture

Be the first of your class to join our Degree Subscription Service.

 

Low montly installments of ...........

 

Call Now !

Tue, 05/08/2012 - 14:49 | Link to Comment karzai_luver
karzai_luver's picture

No doubt they should ALL be jailed, it's the one job the U.S. is NBR1 in.

 

Plus, we could remove them all from the job hunters along with hiring thousands and thousands to man the jails to hold them all, plus the new jails that would need to be built.

 

I think that's the ticket.

 

 

 

Vote to jail all college grads without a job. Get them jailed before they riot and burn down the Starbucks bitchez.

 

 

USA USA USA.

 

Tue, 05/08/2012 - 13:29 | Link to Comment youngman
youngman's picture

So that is why gold and silver are down today....the students are selling their PM´s to pay off their student loans.......lol

Actually the "students" and I use that term as a joke....because they really are professional partiers.....have just learned a little Econ 101...it might help them with their African Womens Art major......

Tue, 05/08/2012 - 13:30 | Link to Comment chet
chet's picture

I think at this point the GOP would block a resolution to praise Grandmas and Apple Pie if it was proposed by a Democrat.  Saying "no" to things doesn't constitute a platform.

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