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View Diary: Elizabeth Warren: Students should get the same loan rate as big banks (164 comments)

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  •  Oliver - not at all (3+ / 0-)
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    nextstep, johnny wurster, Odysseus

    I think all of these programs take advantage of the fact that the US Government borrows at very low rates and the federal student loan rates are well below what a market clearing rate would be in the private market. The federal government provides a big subsidy.

    "let's talk about that"

    by VClib on Wed May 08, 2013 at 10:37:11 AM PDT

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    •  My son can (1+ / 0-)
      Recommended by:
      VClib

      and has gotten a unsub student loan for less than the 6.8% Fed loan.

      "You have attributed conditions to villainy that simply result from stupidity"

      by newfie on Wed May 08, 2013 at 10:45:10 AM PDT

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    •  A guarantee of a loan that charges enough interest (1+ / 0-)
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      VClib

      to cover ALL the financial costs of the program by definition means that the government is EXPENDING nothing at all to subsidize higher education.  It's a way of "supporting" without actually subsidizing -- the perfect OLD Republican method.  Of course, the perfect current Repuclican method is to route the loans through banks that can thereby  make a buck off of government-guaranteed loans -- the prototypical socialism for corporations, capitalism for everyone else.  

          Like I said, a system that actually worked extremely well was DIRECT UNDERWRITING OF PUBLIC EDUCATION.  And, of course, since this reduced tuition at quality public universities, it served as a market control on what private colleges could charge.  Naturally, though, we can't have that because, as Charlie Pierce would say, FREEEEEEDOM (a.ka., low taxes for the rich & corporations) v. socialism (a.k.a., the America in which I grew up).  

      "If you don't read the newspapers, you're uninformed. If you do read the newspapers, you're misinformed." -- M. Twain

      by Oliver St John Gogarty on Wed May 08, 2013 at 01:09:38 PM PDT

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